TIDMJPR
RNS Number : 5350V
Johnston Press PLC
29 October 2014
Johnston Press plc
Interim Management Statement
29 October 2014
Johnston Press plc ("Johnston Press" or "the Group") today
publishes its Interim Management Statement which has been drawn up
for the 16 weeks to 18 October 2014, this being the last
practicable date, as required by the UK Listing Authority's
Disclosure and Transparency Rules.
Johnston Press is a leading UK based local media group,
connecting SMEs with local consumers through the provision of news,
sport and other information, in print, online and via mobile and
social networks.
Highlights for the Quarter:
Having successfully refinanced in the first half of the year,
the business continues to grow its audience and move closer to
returning to top line growth, with more advertising categories now
showing net growth in the period.
We enjoyed a further narrowing of the decline in total revenues
year on year from continuing operations, down 3.1% in the third
quarter compared with 4.3% in the first half of the year.
Further highlights include:
-- Momentum in digital audience growth underpinning the strength
of our multimedia platform, with total print and digital audience
now averaging over 27m users per month including mobile audience
nearly doubling (96% growth) to 6.5m average monthly unique users.
Total digital audience up 40% year on year in September.
-- Advertising revenues down 3.4% in the third quarter, compared
to 4.6% in the first half of the year, whilst advertising volumes
remain strong with year on year growth in the quarter.
-- Encouraging year on year aggregate revenue growth in both the
employment and motors category.
-- Digital revenues delivering strong growth of 19.5% in the quarter.
-- New products starting to deliver growth - In the third
quarter Digital Kitbag took 879 orders which more than doubled the
orders taken in the previous quarter. The first Sky AdSmart sales
were also booked in the period with a strong pipeline
developing.
-- Circulation revenues in the quarter declining in line with trend at 4.7%.
-- Continuing to focus on cost savings, reinvesting part of
those savings in its Digital business.
-- Trading during October 2014 is in line with monthly trends.
Operational Performance
The Group remains focused on returning the business to overall
growth and has a clear strategy to achieve this aim, which
encompasses driving audience growth, investing in new digital
products, accelerating digital revenues and continuing to pay down
debt.
During the third quarter, Johnston Press has made further
progress towards this goal, building on the first half performance.
The decline in revenues from continuing operations has narrowed
further, down 3.1% year on year compared with 4.3% at the half
year. The digital revenue growth reflects a strong contribution
from key categories including property (up 51% year on year),
motors (up 79% year on year) and employment (up 11% year on
year).
Johnston Press' investments in its offering and new product
launches are supporting digital growth.
-- Digital Kitbag, which provides digital marketing services to
SMEs, has seen increasing uptake in the period. During the third
quarter we launched an online Digital Kitbag portal for SMEs, with
thousands of visitors and hundreds of businesses downloading our
SME digital marketing guides.
-- During the third quarter we launched
'TheEducationList.co.uk', a new product in our Employment category
in the education sector, building on the success of the
TheSmartList and the AccountancyList. We also rolled out a video
screening product for interviews across all sectors.
-- We completed the Relaunch of 10 football apps in the quarter.
-- WoW24/7, the online entertainment listings and going out
portal, has had over 2.5m visits to the site in 2014 peaking in
August when over 400,000 unique visitors came to the site, fuelled
by the Edinburgh Festivals. Into 2015 we will be looking to build
on the success of this year, as we seek to target key urban areas
outside of London offering a valuable audience for local and
national advertisers.
The Group's total audience is now averaging over 27m unique
users per month, with the growth in its digital audience remaining
strong, up 40% year on year in September and accounting for 65% of
the month's audience. Mobile audiences are averaging 6.5m a month
for the year, representing a near doubling of year on year
audience. Our Scottish Independence website had over 4.5m users,
more than voted in the referendum.
Outlook
Signs of economic growth are present in most of the Group's
geographic markets and whilst some challenges remain, the Group is
focused on taking the right actions to deliver its strategy and
return the business to overall top line growth. The continuing
strong growth of Johnston Press' digital platform positions the
business for further improvements in 2015.
In addition, the business will implement further efficiency and
restructuring initiatives in the final quarter.
As a result of the progress in the year to date and our plans
for the final quarter, the Board expects trading results for 2014
to be in line with current market expectations.
Share Capital Reorganisation
On 24 October, Johnston Press announced plans for a Share
Capital Reorganisation which will see a consolidation of every 50
existing Johnston Press ordinary shares into one new ordinary
share. This activity will see a significant reduction in the number
of Johnston Press shares in issue. The proposal is subject to
shareholders approval at a general meeting to be held on 12
November 2014.
Note
All information is reported on continuing operations following
the sale of its Republic of Ireland titles in April 2014, which
contributed revenues of GBP13.5m and operating profit of GBP1.1m in
2013.
For further information please contact:
Ashley Highfield, Chief Executive Officer
Jane Muirhead, Group Head of PR
Johnston Press plc
0207 612 2616/ 07768 394487
Richard Oldworth/ Sophie McNulty/ Clare Akhurst
Buchanan
0207 466 5000
Investor & analyst call
A conference call for investors and analysts will be held at
8.30 a.m. Wednesday 29 October 2014.
Please see the conference call dial in details below:
Number: 02034281542
Participant Pin: 92261198
A replay of the call will be available on the Group website
www.johnstonpress.co.uk as soon as possible following the call.
The announcement will be available at
www.johnstonpress.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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