Archant: Improving product means revenue up as profit slides
By Leah McBride Mensching, Wednesday 8 August 2007 at 22:12 :: Newspaper Data - General :: #384 :: rss
As UK Regional media company Archant saw an overall revenue increase of 2.1 percent, or 98.5 million pounds, operating profit fell by 1.1 percent, or 12.9 million pounds, in the newspapers and printing for continuing operations sector.
The financial data from the six months ending June 30 reflects costs offset by productivity improvements, or inflationary pressures on costs and further investment of .6 million pounds in online activities, holdthefrontpage.co.uk has reported.
Archant's newspaper and printing revenue for continuing revenue was up .4 percent, by 200,000 pounds, to 69.1 million pounds, holdthefrontpage staff reported.
Negative sentiment about the sector and high profile selling have given the wrong impression that the area's local publishing is in decline, John Fry, chief executive of Archant, told holdthefrontpage staff.
“The challenge is greater than it has been but that doesn't mean that the sector is fundamentally flawed. Archant has put considerable strategic focus on changing our business to deal with changes in local marketplaces,” he is quoted by holdthefrontpage as saying. “We have demonstrated that tight cost control, on the low growth areas of the business, allows you to invest in higher growth activities. Our web audiences are growing in excess of 60 per cent a year. The advertising revenue we generate from those audiences is also growing. Our local magazine business is showing audience growth, revenue growth, and an increasing number of the titles delivering profits as they become established.”
As many advertisers and consumers seek a range of complimentary products to newspapers, Norwich-based Archant has been developing a layered strategy.




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