Despite declining revenues Johnston Press focuses on the positive

Johnston Press, publisher of newspaper titles including The Yorkshire Post, The Scotsman and The i, have released an optimistic trading update despite a continued decline in the revenues.

While revenues, which included a boost from the acquisition of The i, have declined by 6 percent over the past year the publishers board insists there is much to remain positive about.

At a time when advertising revenues, particularly from classified motors, property and jobs advertising (the former financial engine of many local and regional newspapers), is in freefall the company has seen growth in other areas of business including web traffic and subsequent online revenue, social media growth and contract printing.

Other positives in the business include:

• Market share of The i newspaper growing from 17% on acquisition to 20% despite a 10p increase in the cover price.
• The Scotsman increasing print sales by 2% (largely attributed to the newspaper’s 200^th anniversary).
• The Yorkshire Post and The News Letter (Northern Ireland) only reporting single digit declines (in this uncertain age – this is seen as a positive).

However, Johnston Press admits that they are operating in challenging times. The fall in the value of the pound following Brexit continues to put pressure on the organisation, particularly on the price of newsprint and ink.

Ashley Highfield, Johnston Press Chief Executive Officer, said: “Despite the challenging print market, including a very difficult summer prompted by Brexit-related uncertainties, we have seen some improvement in our markets during the fourth quarter. Whilst we expect the overall market environment to remain challenging for both the Group and the industry as a whole, we remain focused on delivering on our strategic priorities of growing our overall audience, driving the further success of the i newspaper, delivering a more efficient editorial and sales operation and strengthening the balance sheet.

Highfield was also keen to suggest that political uncertainty and the public’s desire to engage with quality news brands offered a huge opportunity to companies like Johnston Press.

Highfield said: “The market for quality news brands, that know their audience, in print and online, in a world of ‘fake news’, ‘alternative facts’, and internet ad fraud, is increasingly appreciated by our readers and advertisers alike. Our continued drive to maximise operational efficiencies gives us flexibility in the face of a challenging market and gives the management confidence that we can make further progress.”