Johnston Press reports biggest revenue drop in its history
Posted by Emily Dilling on March 11, 2009 at 8:21 AM
UK regional newspaper group Johnston Press has suffered its largest decline in revenue to date, Media Guardian reported Wednesday.
Johnston Press reported year-on-year drops in advertising revenue of 35 percent in the first months of 2009. Overall revenue fell by more than 12 percent last year. The decrease, which the company is calling its "greatest fall in revenue in its history," accelerated its rate by 54.8 percent in the last three months of 2008.
Johnston Press reported year-on-year drops in advertising revenue of 35 percent in the first months of 2009. Overall revenue fell by more than 12 percent last year. The decrease, which the company is calling its "greatest fall in revenue in its history," accelerated its rate by 54.8 percent in the last three months of 2008.
The group was hit hardest by diminishing ad sales, given that it relies heavily on local classified ads as well as ads from the unstable real estate and employment sectors.
"Advertising markets remain very depressed with advertising revenues to date in 2009 35.9 percent below those for 2008," John Fry, CEO of Johnston Press, told Media Guardian. "In the short term there is little prospect of a turn in the advertising cycle and our expectation is for 2009 to be a very challenging year."
The newspaper publisher has also accrued debt through recent costly acquisitions such as the purchase of The Scotsman newspaper, among other titles. In an attempt to offset the deficit, the group is trying to sell off some of its Irish newspaper titles.
"Advertising markets remain very depressed with advertising revenues to date in 2009 35.9 percent below those for 2008," John Fry, CEO of Johnston Press, told Media Guardian. "In the short term there is little prospect of a turn in the advertising cycle and our expectation is for 2009 to be a very challenging year."
The newspaper publisher has also accrued debt through recent costly acquisitions such as the purchase of The Scotsman newspaper, among other titles. In an attempt to offset the deficit, the group is trying to sell off some of its Irish newspaper titles.
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