Johnston Press cautious on 2008

Published on Thursday 13 December 2007 01:18

JOHNSTON Press, one of the biggest newspaper groups in Britain, yesterday said it had seen a continued improvement in month-on-month advertising performance in the five months to the end of November.

The group, which owns The Scotsman, said it expected a satisfactory outcome for 2007, but added that "recent turmoil in world financial markets and the consequential effects on the domestic economy and consumer confidence must lead to a degree of caution when considering prospects for 2008".

It came as a Johnston Press spokesman confirmed that Tim Bowdler, chief executive, planned to step down on his 62nd birthday in May 2009.

Following weekend reports, the spokesman said: "Tim's retirement date has been in the two most recent annual reports from Johnston Press, so there is nothing new. It is about good succession planning."

During the five months to end-November overall advertising revenues at Johnston, which owns more than 300 newspapers, lifted 0.2 per cent.

Like-for-like UK print advertising revenues fell 0.8 per cent. During the six months to end-June, the equivalent figures were reductions of 1.5 and 2.9 per cent respectively.

Helped by renewed growth in the south of England, like-for-like print employment revenues in the latest period fell 1.8 per cent, compared with a dip of 4.3 per cent in the first half.

Property advertising, which has held strong throughout the downturn, again grew throughout the five months but at a slower rate as a result of stronger comparatives.

The rate of decline in motors advertising, over 8 per cent in the first half, continued to ease.

Advertising revenues in the Republic of Ireland fell 1.2 per cent, after growth of 10 per cent in the first six months, as the recent economic slowdown hit the property market.