UK regional publisher Johnston Press announced a 5.4 percent plunge in ad revenue during the 18 weeks prior to November 6 that was accounted for by a deteriorating public sector and recruitment advertising, Business7 wrote today. However, Reuters pointed out that the fall was slightly less than during the first half, which was 6.3 percent.

"Despite the decline in total advertising revenues being slightly worse than previously anticipated, this has been largely offset by increased cost savings and therefore it is expected that the outcome for the year will be satisfactory," Johnston said, Hold The Front Page reported.

The plunge in print ad revenues (not counting recruitment) during the second half of 2010 leveled to 2.5 percent. Although property advertising received a boost, recruitment ads sunk by 29 percent since last year.

Johnston hinted that public sector ad market was "particularly difficult "but it only constituted nearly 9 percent of Johnston's total ads in the third quarter, Busiiness7 informed. The publisher explained that this drop was "sufficient to slow the overall rate of improvement in advertising performance," a report by MediaGuardian stated.

The Guardian added that the recruitment public sector ads decreased by 46 percent throughout the three months prior to the end of September. Meanwhile other advertising fields still depicted "reduced rates of decline or growth" for numerous regions.

Digital ads saw growth, but no figures were available to support the statement. Business7 mentioned that over half of the company's websites have adopted a new template.

Subsequently Johnston's share prices dropped by 6 percent to £0.11, a figure The Guardian dubbed as "a new 12-month low." The publisher's market value was priced as lower than £72 million.

Total cost savings for 2010 were predicted to reach more than £20 million. The net debt slumped by £13 million to £388 million at the end of last month, Reuters outlined. The waning public sector ad market prompted the publisher to admit that it wasn't envisaging growth in 2010, The Guardian said.

In related news today, Johnston Press announced it may have to close its Limerick, Ireland printing press.