Johnston Press PLC Trading Update (9281S)
July 14 2015 - 2:00AM
UK Regulatory
TIDMJPR
RNS Number : 9281S
Johnston Press PLC
14 July 2015
Johnston Press plc
14 July 2015
Trading Update
Johnston Press plc is issuing a trading update ahead of its 2015
interim results announcement on 11 August 2015.
The trading environment has been challenging during the first
half of the year. Although the company traded well in the first
quarter, the second quarter has been impacted by a slowdown in
general trading as well as specific weakness in the run up to, and
the period immediately after the election. Based on most recent
indicators, July is expected to show an improvement.
During the 26 weeks to 4 July 2015 ('the period') total revenue
is expected to fall by approximately 5% year on year (compared to
4.3% for the first half last year, 2014). Total advertising revenue
is expected to fall by some 5% (compared to 4.6% for the first half
last year). In the second quarter, around the time of the election,
a number of national and local advertisers chose to reduce or delay
their spend in both print and online. Circulation revenue is also
expected to fall by some 5.5% during the period, while circulation
volumes are showing a small improvement in the decline rate.
Management took action to mitigate much of the revenue reduction in
the period, limiting the impact on profits. However, first half
profits are likely to be marginally below last year.
Our digital audience continues to grow with average monthly
unique users growing by over 20%. Digital revenues also continue to
grow, and we are expecting to report growth of some 17% in the
period. With pleasing growth expected from its 1XL digital
advertising exchange partnership, and further digital product
releases during the second half, the business expects to achieve
its digital revenue growth targets.
The business continues to deliver strong cash flows, and has
reduced net debt, in line with expectations.
As a result of the off-trend trading in the second quarter, the
business enters the second half from a lower base than planned, and
revenue trends, whilst expected to improve, may be impacted by
market volatility during the rest of the year.
The group will continue to invest to drive revenue growth, but
will also continue to make cost savings, to fund that investment.
However, at this stage, we anticipate full year profit will be
slightly below market expectations.
Ashley Highfield, Chief Executive, commented; "Trading
conditions in the first half of 2015 have undoubtedly been
challenging, especially in the period around the General Election -
a time when there was also a high degree of uncertainty in the
wider market. Whilst we expect this will have an impact on profit
both at the half year and the full year, there are positive
indicators coming through with digital growth and continued strong
cash flow."
Enquiries
Johnston Press
Ashley Highfield, Chief
Executive 020 7612 2601
David King, CFO 020 7612 2602
Bell Pottinger
Dan de Belder 020 3772 2561
Zoë Pocock 020 3772 2574
This information is provided by RNS
The company news service from the London Stock Exchange
END
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