According to Johnston Press:
Key highlights include:
• Digital audience grew by over 20% to an average monthly audience of 19.9m in H1 2015 (2014: 16.7m)
• Digital revenues: Up 17.5% for the period, from £14.1m to £16.5m now representing 20.5% of advertising revenues (H1 2014: 16.6%)
• Revenue: Total underlying revenues of £128.9m (H1 2014: £135.1m) reflect a decline of 4.6% for the period (H1 2014: (4.3)%)
• Costs: Cost savings of £7.6m (gross) offset revenue declines, and funded digital investment of £2.6m in the period
• Operating profit: Underlying operating profit reduced £1.2m to £27m, sustaining a market leading margin of 20.9% Profit before tax: Underlying profit before tax increased 114.3% to £17.8m from £8.3m, reflecting reduced interest expense following refinancing
• Continued debt reduction: Net debt reduced to £183.3m (2014 FY: £194.2m)
Ashley Highfield, Chief Executive, commented: “Trading conditions in the first half of 2015 have undoubtedly been challenging, with May and June being particularly difficult - a time when there was also a high degree of uncertainty in the wider market.
“However, we believe, local publishing, with SMEs representing 80% of our advertising revenue, is not as volatile as national publishing. We have seen some improvement in reducing the decline in advertising revenues in July compared to July 2014. We will continue to drive for further improvement in revenues, albeit off a lower base, and will also continue to target further cost savings.
“Our strategy remains constant and is showing real traction. Digital now accounts for over 20% of advertising revenues, up from 13% two years ago. Digital display saw growth of 30% in the period and we are developing new digital products such as AdPerfect and Powerlistings aimed at small businesses. Our participation in the industry-wide 1XL national advertising exchange has contributed to our national digital advertising revenues growing by 120% in the period to £2.0m.”
