Johnston Press finds its 6.8% decline in revenue an encouraging sign as decreased costs leads to bump in profits
UK newspaper company reports a 45 percent year-over-year gain in digital revenue
The publisher of UK regional newspapers such as The Scotsman today reported its earnings over the past 18 weeks. The company was able to report an operating profit growth of 7.8 percent and improved margins due to a 10 percent decrease in costs.
Revenues continue to fall – 6.8 percent over the reporting period – but the company said its moderating revenue losses were an encouraging sign. The company was also able to report sharp gains in digital revenue, with the category up 32 percent so far this year, and 44.7 percent over the past 12 months.
“Digital revenue growth remains a priority and the Midlands reaching a “Tipping Point” in local display advertising is a highlight for the business,” Johnston Press CEO Ashley Highfield said. “It remains a key goal for the whole Group to reach the point where digital growth will offset any further decline so we can return to overall top-line growth. With the refreshed print titles and websites, averaging monthly audiences of over 25m, and new digital products and services, we believe that Johnston Press remains as relevant to local communities and advertisers, both local and national as it has ever been. We also continue to focus on reducing our cost base whilst increasing our investment in our digital future.”