Johnston Press not expected to sell Irish papers as job lot

BRITISH MEDIA group Johnston Press is not expected to sell its Irish regional newspapers as a job lot, according to industry sources here.

It is understood the company is preparing to sell about half of the 13 titles as one group, with the other papers sold individually to interested parties. This reflects the lack of appetite among interested parties to buy the entire stable of newspapers.

It is understood The Irish Times, Cork-based Thomas Crosbie Holdings and Independent News & Media have indicated that they are not interested in buying the Irish regional papers.

The titles – which include the Limerick Leader, the Kilkenny Peopleand the Leinster Leader– were put up for sale recently and are expected to fetch between €50 million and €80 million.

Initial bids for the titles must be submitted no later than March 19th. The sale process is being handled by Raglan Capital.

It has also emerged that there has been little interest expressed by parties in Johnston Press’s printing plants in Limerick and Kilkenny.

Johnston Press said yesterday that it expected the sale of the Irish assets to be concluded by early May.

Its advertising revenues here declined by 23 per cent in 2008. Johnston Press took a £417.5 million (€450.9 million) impairment charge to its 2008 results, of which £134 million relates to its acquisition of the regional titles in the Republic.

Johnston Press also axed its final 2008 dividend yesterday after saying its advertising revenue in 2009 was down 36 per cent in the year to date.

It expects 2009 to be a very challenging year with revenues significantly below 2008 levels and only partially offset by lower costs.

“We are benefiting from the full effects of the 2008 cost reduction programme with more initiatives in place which will drive further efficiencies,” the group said.

Costs for the first two months of 2009 are running 15.7 per cent down on the same period in 2008.

Group revenues in 2008 were down 12 per cent to £532 million and operating profit before non-recurring items was down 28 per cent at £128 million. –(Additional reporting Reuters)