As the traditional media industry continues to struggle, regional newspaper publishers Johnston Press and Trinity Mirror are also witnessing the impact of the recession. Steep declines in ad revenues have been reported, with the only glimmer of hope being the fact that they are seeing signs of stabilisation.
Trinity Mirror says group revenues have fallen 18% in the first 17 weeks of the year, driven by advertising shortfalls. Total advertising revenues down by 30%. Regionals division ad revenues down 36%, with all advertising categories down year-on-year. Group digital revenues for period fall by 13% (14% for regionals and 11% for nationals). But group says it continues to see growth in digital display advertising across both regionals and nationals. Trinity says circulation is “more resilient”, with total revenues down 4% (8% for regionals and 3% for nationals).
Johnston Press interim management statement says advertising revenues for 19 weeks to May 9 are down 34.4% year-on-year, although recent weeks have shown signs of stabilisation. 2009 operating profit is likely to be at lower end of market expectations, despite cost-cutting programme expected to reduce overheads by £30m, with further impairment charges expected at the half-year. CEO John Fry says: “Whilst our market remains fragile, we have seen some stability in advertising revenue over recent weeks, our cost reduction programme is on track, and we are making good progress in the discussions with our debt providers. This gives us encouragement that we will be well placed to benefit from any recovery in the economy as and when it emerges.”
Read more here: Ad Revenues Down
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