Herald publisher’s profits fall despite advertising lift

PROFITS at Newsquest, the Glasgow-based publisher of the Herald and Evening Times, dropped 24 per cent after a rise in internet advertising failed to make up for a fall in other revenues.

Accounts filed at Companies House showed that pre-tax profits fell to £7.3 million in the year to 26 December from £9.6m. Turnover fell to £58.5m from £63.1m despite online advertising rising by 9.4 per cent.

The firm – which is owned by New York-listed Gannett, which publishes USA Today – said it had “continued to make a series of cost reductions and restructured processes to mitigate the impact of the decline in revenues”. In November, the firm announced about 20 job losses. The company’s headcount fell to 597 from 614 over the course of the year, while it booked £970,000 in restructuring costs.

Newsquest also warned of tough times ahead. The firm said: “Government fiscal tightening in order to address the public sector deficit is expected to impact revenues negatively in 2011.”