Lower costs boost adjusted profits at Johnston Press

Johnston Press said it posted a 23 per cent jump in adjusted profit before tax as it continued to cut costs in its efforts to return to growth.

The world’s largest journal publisher said adjusted profit before tax rose to £31.5 million (€40.1 million) for the 52 weeks ended January 2nd, from £25.7 million a year ago.

Operating costs for the period was £191.7 million, down by £19.6 million, the company, which publishes the Scotsman newspaper, said.

Revenue for the 52 weeks fell 6.8 per cent to £242.3 million from a year ago.

The newspaper industry has been hammered in recent years as advertisers have followed readers to online platforms, forcing print publishers such as Trinity Mirror and Daily Mail and General Trust to cut costs drastically.

Johnston Press has been selling non-core assets and cutting operating costs to reduce its net debt and return to revenue growth.

To that end, the company has agreed to buy Britain's i newspaper from its Russian owners Independent Print in a £24 million deal last month. It also identified "a number of brands" to sell in the near future, saying they were not "part of its long-term future".

Reuters