TIDMJPR
RNS Number : 5547D
Johnston Press PLC
01 February 2018
TRADING UPDATE
EMBARGOED UNTIL 07:00 THURSDAY 1ST FEBRUARY 2018
For the 52 week period ended 30 December 2017
Exceptional i newspaper performance and growing audiences across
portfolio
Johnston Press plc ("the Group"), a leading multi-media group in
the UK, provides its trading update (unaudited) for the 52 weeks to
30 December 2017.
The Board confirms that (subject to audit) the adjusted EBITDA
is in line with the Board's expectations. Cash balances at 30
December were GBP25m.
Total revenues from continuing operations for the 52 week period
fell 5% year on year.
Digital revenue from continuing operations, excluding classified
categories, was up 14%, while digital revenue including classified
categories was up 3%.
Digital audience growth remains a strategic priority, and the
number of unique users grew to an average of 25.4m unique browsers
per month, a 13% increase on last year, with 108m average page
views per month, 19% up on 2016.
In line with our strategy of focusing on cities and towns with
the largest digital growth opportunity, web traffic (i.e. page
views) on The Belfast Newsletter, was up 48%; Yorkshire Evening
Post (Leeds) was up 47% with the Sheffield Star up 42% and The
Edinburgh News up 39%, year on year.
Newspaper circulation revenue from continuing operations was up
2% year on year, benefiting from the full year effect of the i
newspaper, acquired in April 2016.
Total publishing revenues (total advertising and newspaper
circulation revenue) from continuing operations were down 6% year
on year, 13% excluding the i newspaper.
Update on the i
The i newspaper had an exceptional year, taking some 20% market
share of the 'Quality' weekday market. Newspaper circulation
revenue was up 19%, and advertising was up 26% in the second half,
on a like for like basis.*
The relaunch of the weekend edition in September 2017 saw an
average increase in circulation in the three months post relaunch
of 9k copies, to 272k. Digital audiences averaged over 1.4m unique
browsers per month, up 45% year on year.
Contract Printing
Contract printing revenue was up 4% year on year with the
benefits of winning new printing contracts (including the Daily
Mail and Metro) outweighing circulation decline in some existing
contract print titles.
Strategic review of financing options
Last year, the Group announced it had commenced a strategic
review to assess the financing options available to the Group in
relation to its GBP220m 8.625% senior secured notes which become
due for repayment on 1 June 2019.
The Board subsequently announced that it was approaching its
largest bondholders regarding the formation of an ad hoc committee
of bondholders, which was formed in October. Discussions with
advisers to the ad hoc committee are in progress. Any proposal that
results from these discussions will remain subject to negotiation
and the consent of relevant stakeholders, and there can be no
certainty that a formal proposal will be forthcoming.
Ashley Highfield, CEO of Johnston Press, said
"We remained focused on delivering the priorities outlined to
shareholders, amidst an extremely challenging trading environment.
The i has delivered a very strong performance in our first full
year of ownership. A slowing down of top line decline is
encouraging while further growth in our audiences and digital
revenues, underpinned by additional cost reduction, enabled us to
maintain profit margins.
"In 2018, alongside our strategic review of financing options,
we will continue to invest in the business, including recruiting 32
journalists funded by the BBC, and a further 21 editorial staff and
10 specialist digital sales staff as we seek to accelerate digital
growth further while reinforcing our offering of quality, trusted
content across all platforms."
Notes
Adjusted EBITDA is operating profit before depreciation and
exceptional items.
Continuing operations includes the i newspaper from 10 April
2016, and excludes East Midlands titles disposed of in January
2017, from 2016 and 2017.
Enquiries
Johnston Press plc
Ashley Highfield, CEO
David King, CFO
020 7612 2600
Powerscourt
Rory Godson
Peter Ogden
John Elliott
020 7250 1446
jp@powerscourt-group.com
About Johnston Press
Johnston Press is a leading multimedia business with a vibrant
mix of news brands that reach national, regional and local
audiences. We provide news and information services to local and
regional communities through our extensive portfolio of hundreds of
publications and websites.
Sharing information and opinion remains at the heart of what we
do and our titles, which include iconic publications such as the i
newspaper, The Scotsman, The Yorkshire Post and News Letter in
Northern Ireland are read via traditional print, online platforms
and mobile devices by 37.8 million people every month.
We are experts in combining national reach with local targeting
and are better equipped than ever to help advertisers tell their
stories, too, through our trusted platforms.
Forward-looking statements
The report contains forward looking statements. Although the
Group believes that the expectation reflected in these forward-
looking statements are reasonable, it can give no assurance that
the expectations will prove to have been correct. Due to the
inherent uncertainties, including both economic and business risk
factors underlying such forward looking information, actual results
may differ materially from those expressed or implied by these
forward looking statements. The Group undertakes no obligation to
update any forward-looking statements, whether as a result of new
information, future events, or otherwise.
Market abuse regulation
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
Johnston Press Legal Entity Identifier: 213800JFIBCR4LGUA242
Classification: Inside Information
This information is provided by RNS
The company news service from the London Stock Exchange
END
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