JPR Johnston Press

TIDMJPR TIDMBSY

RNS Number : 6873G

Johnston Press PLC

09 May 2014

 
 For immediate release   9 May 2014 
 
 

NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH THE PUBLICATION, DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL. OTHER RESTRICTIONS ARE APPLICABLE. PLEASE SEE THE IMPORTANT NOTICE AT THE END OF THE PRESS RELEASE.

JOHNSTON PRESS PLC

("Johnston Press")

Sky and Johnston Press create innovative regional advertising partnership

Sky and Johnston Press today announce that they have entered into a ground-breaking strategic regional advertising partnership.

Under the terms of the agreement, Sky will make available its new product, Sky AdSmart local, to parts of Johnston Press' extensive sales network. Already available in more than a fifth of UK households, Sky AdSmart tailors what is shown in TV ad breaks according to a household's location and profile.

Johnston Press is the leading local media company in the UK and has a significant, established existing customer base of small and medium-sized enterprises. From June, local companies will be able to create and deliver powerful advertising campaigns that combine its extensive range of regional print titles and digital platforms with the use of Sky AdSmart local to create TV advertising focused on specific local markets.

The partnership will begin with two markets: the first of these covers Nottingham, Derby and Sheffield; and the second, Milton Keynes, Northampton and Peterborough. The Sky AdSmart team will work with Johnston Press' 1,600-strong advertising sales force to initially deliver campaigns across these markets. Sky chose to partner with Johnston Press after discussions with a number of other media companies.

Today, Johnston Press attracts an average monthly audience totalling 24.5 million across its extensive portfolio of newspapers, lifestyle magazines and local news and e-commerce websites.

Sky AdSmart has already been used by more than 100 advertisers since its launch. These include major national brands such as Tesco, Ocado and American Airlines but also local businesses who may have previously concluded advertising on TV wasn't for them. Local advertisers who have already signed up include insurance group First Central, Wessex Garages, BMI Hospitals and the Hampshire Ford dealership, Hendy.

With Sky AdSmart, Sky customers see more adverts that are more likely to be of interest to them and fewer that are not relevant. By removing many of the obstacles to accessing TV advertising that local advertisers currently face, such as the requirement for large budgets to cover whole regions, consumers can discover smaller, more local brands. It allows small and medium-sized enterprises to compete on a level playing field with larger national brands. In total, one quarter of the brands that have signed up for Sky AdSmart are either new to TV advertising or had previously left the market.

Sky has also today conditionally agreed to subscribe for 13,676,149 new ordinary shares in Johnston Press (the "Placing Shares") at the placing price of 17 pence per share and to taking up the rights associated with the Placing Shares for which it has subscribed in Johnston Press' rights issue, as notified by Johnston Press in a separate announcement today. The total investment to be made by Sky under the placing and the rights issue will be approximately GBP5 million.

Andrew Griffith, Sky's Managing Director, Commercial Businesses, said: "Sky AdSmart local helps level the playing field for local businesses. They can now compete effectively with national brands, using the unique brand-building power of TV. Local companies can promote their products or service on any of Sky's quality channels and be confident they are reaching their target audiences. We are looking forward to partnering with Johnston Press with its considerable experience of working alongside local communities and its market-leading role in building successful local digital media platforms".

Ashley Highfield, CEO of Johnston Press, said: "Johnston Press has been focused on its vision to become a truly multimedia business over the last two years. This agreement with Sky is testament to the platform we have put in place. That Sky has further demonstrated its conviction in our strategy by investing in our business is particularly encouraging. The strength of our sales team network and our relationships with small and medium-sized enterprises across the UK position us well to deliver a comprehensive portfolio of advertising and marketing solutions. We already have 300,000 local business customers who benefit from our expertise and it is exciting that we will now be able to offer them Sky AdSmart local."

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For more information:

Johnston Press

Jane Muirhead

jane.muirhead@jpress.co.uk

020 7612 2616

Buchanan

Richard Oldworth/Sophie McNulty

020 7466 5000

www.buchanan.uk.com

Sky

Robin Tozer

robin.tozer@bskyb.com

0207 032 0620

Matt Beake

matt.beake@bskyb.com

0207 032 2895

About Sky

Sky is the UK and Ireland's leading home entertainment and communications company. Around 40% of all homes have a direct relationship with Sky through its range of TV, broadband and home telephony services.

Sky is the UK's biggest investor in television content, investing more than GBP2.5 billion a year in channels such as Sky 1, Sky Atlantic, Sky Living, Sky Arts, Sky Sports, Sky Movies and Sky News. Around two-thirds of Sky's content spend is invested in the UK and Sky is the fastest-growing source of investment in original British programmes. More than 30 million people watch Sky content each week. Sky distributes its content broadly over several platforms, including satellite, cable, IPTV, mobile and WiFi.

Sky employs 24,000 people, has annual revenues of GBP7.2 billion and is estimated to support a GBP5.9 billion contribution to UK GDP. Sky is listed on the London Stock Exchange (BSY). www.sky.com/corporate

About Johnston Press

Johnston Press is one of the largest local and regional multimedia organisations in the UK. We provide news and information services to local and regional communities through our portfolio of publications and websites - 13 paid-for daily newspapers, 196 paid-for weekly newspapers, 39 free titles, ten lifestyle magazines and 198 local news and e-commerce websites.

Each month our news brands touch the lives of 24.5m people across our eight publishing regions: Scotland, the North East, West Yorkshire, the North West & Isle of Man, South Yorkshire, the South, Midlands and Northern Ireland - delivering extensive coverage of local news, events and information. We offer national and regional advertisers a highly successful platform to link them directly with local audiences.

IMPORTANT NOTICE

This announcement has been issued by and is the sole responsibility of Johnston Press PLC ("Johnston Press" or the "Company"). The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy or completeness. The information in this announcement is subject to change.

This announcement is for information purposes only and is not intended to and does not constitute or form part of any offer or invitation to purchase or subscribe for, or any solicitation to purchase or subscribe for securities or to take up any entitlements to securities in any jurisdiction in which such an offer or solicitation is unlawful. This announcement cannot be relied upon for any investment contract or decision.

The information contained in this announcement is not for release, publication or distribution to persons in the United States, Canada, Australia, Japan or the Republic of South Africa and should not be distributed, forwarded to or transmitted in or into any jurisdiction where to do so might constitute a violation of local securities laws or regulations.

This announcement does not constitute or form part of an offer or solicitation to purchase or subscribe for securities in the United States, Canada, Australia, Japan or the Republic of South Africa. The securities of the Company have not been and will not be registered under the US Securities Act of 1933 (the "Securities Act") or under the applicable securities laws of any state or other jurisdiction of the United States or the securities legislation of any province or territory of Canada, Australia, Japan or the Republic of South Africa. Accordingly, the securities of the Company may not be offered, sold, resold, delivered or distributed, directly or indirectly, in or into the United States absent registration, or an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with state securities laws, or in or into Canada, Australia, Japan or the Republic of South Africa except in accordance with applicable law. There will be no public offer of securities of the Company in the United States, Canada, Australia, Japan or the Republic of South Africa.

The distribution of this announcement into jurisdictions other than the United Kingdom may be restricted by law, and, therefore, persons into whose possession this announcement comes should inform themselves about and observe any such restrictions. Any failure to comply with any such restrictions may constitute a violation of the securities laws of such jurisdiction.

No incorporation of website information

The contents of the Company's website or any website mentioned in this announcement or any website directly or indirectly linked to the Company's website have not been verified and do not form part of this announcement and investors should not rely on it.

Information regarding forward-looking statements

This announcement includes forward-looking statements. The words "believe", "anticipate", "expect", "intend", "aim", "plan", "predict", "continue", "assume", "positioned", "may", "will", "should", "shall", "risk" and other similar expressions that are predictions of or indicate future events and future trends identify forward-looking statements. These forward-looking statements include all matters that are not historical facts. In particular, any statements regarding the Company's strategy, dividend policy and other future events or prospects are forward-looking statements. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are in many cases beyond the Company's control. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that the Company's actual results of operations, financial condition and the development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements contained in this announcement. The cautionary statements set out above should be considered in connection with any subsequent written or oral forward-looking statements that the Company, or persons acting on its behalf, may issue. These forward-looking statements reflect the Company's judgment at the date of this announcement and are not intended to give any assurances as to future results. Save for those forward-looking statements required by the Listing Rules, Disclosure Rules and Transparency Rules and/or the Prospectus Rules, the Company undertakes no obligation to update these forward-looking statements, and will not publicly release any revisions it may make to these forward-looking statements that may result from events or circumstances arising after the date of this announcement. The Company will comply with its obligations to publish updated information as required by law or by any regulatory authority but assumes no further obligation to publish additional information.

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