Johnston Press PLC Trading Update (2414M)
January 19 2016 - 2:00AM
UK Regulatory
TIDMJPR
RNS Number : 2414M
Johnston Press PLC
19 January 2016
19 January 2016
Trading Update
Johnston Press plc ("the Group"), one of the leading local media
groups in the UK, announces its trading update for the 52 weeks to
2 January 2016.
The Board confirms that (subject to audit) the underlying
EBITDA, and net debt, for the 52 weeks to 2 January 2016 are in
line with expectations. The 2015 preliminary results will be
announced on 22(nd) March 2016.
Underlying total revenues for the 52 week period fell 7% year on
year.
Underlying digital revenues were up 12%, whilst publishing
revenues fell 8%, with print advertising revenues down 12%.
Digital audience growth remains a priority and the number of
unique users has grown to 22.6m in December 2015.
National display revenues (print and digital) were up 3% year on
year driven by a 99% increase in revenue from 1XL, our digital
advertising exchange partnership, while local display revenues were
down 7%. The group increased focus on larger SME customers, with
high spending customers in 2015 increasing their spend by 17% year
on year during 2015.
Media Sales Centre transaction revenues (including Public
Notices, Births, Marriages and Deaths, and Central Display) were up
1% year on year, while former classified categories of Employment,
Properties and Motors were down 13%, 17% and 11% respectively.
Contract printing revenues were flat year on year, the benefits
of winning the printing contracts for the Daily and Sunday Express
and Star, being offset by circulation decline in existing contract
titles.
Circulation revenues were down 7% year on year, while
circulation volume decline rates improved by 1.5% for daily titles
and 2.6% for weekly titles from the start of 2015 to the end.
The Group announced an internal management restructuring on 1
December 2015, removing a layer of regional management. This will
enable the Group to prioritise investment in growth markets while
delivering a consistent advertising solution to both National and
SME display advertisers across the portfolio. The alignment of
editorial under a single Editor in Chief, will also ensure content
sharing is optimised and a clear consistent approach to delivering
content to audiences online, on mobile, via social media and in
print.
Asset Disposals
As part of the Group's portfolio review, a number of brands have
been identified that are not part of its long-term future, as they
fall outside its selected markets, or do not match the audience
focus, or do not offer the levels of digital growth sought by the
Group. A process has been initiated to explore the sale of these
assets to identified parties.
If the disposal process is successful in realising appropriate
value for the assets, proceeds will be used to fund on-going
investment in preferred markets and to further deleverage the
Group.
Strategy
The Group has clear plans to drive revenue and make further cost
reductions in 2016, guided by a strategy that prioritises our
display advertising products (both local and national), and focuses
on growing digital revenues in key economic-growth geographies and
with key audiences with more disposable income.
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
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