Johnston Press has said it has seen an improvement in trading since issuing a warning to investors that sent its shares tumbling last month, although ad revenue still slumped by 7.7% year on year in July.
The regional newspaper publisher, which saw its share price fall by up to 16% after issuing a profit warning, said operating profits fell 4.3% to £27m in the first half to 3 July.
Investors spooked by the full-year profits warning will take some solace in a slight improvement in ad sales, the company said the 9.5% fall in ad revenues in May improved to a decline of 7.7% in July.
Total ad revenues declined 5.1% to £80.6m. Within that, print advertising fell 9.5% to £64.1m.
“Trading conditions in the first half of 2015 have undoubtedly been challenging, with May and June being particularly difficult – a time when there was also a high degree of uncertainty in the wider market,” said Ashley Highfield, chief executive of Johnston Press.
“We have seen some improvement in reducing the decline in advertising revenues in July compared to July 2014. We will continue to drive for further improvement in revenues, albeit off a lower base, and will also continue to target further cost savings.”
Johnston Press pointed out that digital revenues continue to show good growth, up 17.5% year on year in the first half to £16.5m, accounting for 20.5% of total ad revenues.
The publisher said its digital audience grew by more than 20% to 19.9 million average monthly browsers.
“Our strategy remains constant and is showing real traction,” said Highfield. “Digital now accounts for over 20% of advertising revenues, up from 13% two years ago. Digital display saw growth of 30% in the period and we are developing new digital products.”
Print sales revenues fell 5.3% to £37.6m; the company said this was due to a decision not to raise the cover price on over 60 of its titles.
Net debt reduced from £194m to £183.3m.
