Advertising picture improves at Johnston after property bounce

Published on Wednesday 11 November 2009 20:53

JOHNSTON Press, publisher of The Scotsman and Yorkshire Post newspapers, yesterday said advertising trends had improved on the back of a resurgent property market.

Johnston Press said advertising revenues declined by 19.1 per cent in the ten weeks to 31 October, an improvement on the 26.1 per cent fall in the initial eight weeks of the second half and the 32.7 per cent plunge seen in the first half.

The group said average weekly advertising revenues had also stabilised, with levels in September and October the same as they were in May and June.

A rebound in the property market is helping to offset ongoing declines in recruitment sales as unemployment continues to rise, according to Johnston.

It said: "Given the greater stability in advertising revenues, combined with reducing declines in circulation revenues and continued progress with cost savings, the group is confident of delivering an operating profit in line with current market expectations for 2009."

The company's shares rose 4 per cent on confirmation of a steadier picture for the firm.

In addition to "significant" cost reductions made by the group over the past 18 months, it said it would "expect further progress to be made", estimating a 50m cut to costs by year end.

In October, the group closed two printing operations – in Kilkenny, Ireland and in Edinburgh.

Trinity Mirror, which owns a raft of regional papers alongside its national Mirror titles, will reveal whether it too has seen progress when it updates the market tomorrow.

&#149 The Guardian-owned Observer newspaper yesterday informed staff it planned to close three of its monthly magazines. It will close its monthly sport, women and music magazines but will keep its popular monthly food magazine. Business coverage will be incorporated to the main paper while travel will be taken into the Observer magazine.

Publishers of the Independent and the Independent on Sunday announced they had agreed a debt-for-equity swap with its bond holders.