TIDMJPR
RNS Number : 4866Y
Johnston Press PLC
06 December 2017
6 December 2017
Johnston Press plc
Update on the "i" newspaper
-- Johnston Press brings the i newspaper to average monthly
profits of GBP1 million for the period September to November
2017
-- Revenue at the i newspaper for 11 months to November of
GBP27.5m (GBP18.5m April to Dec '16)
-- Margin increased from 20% pre-acquisition to over 30% in H2 '17
-- Increased newspaper sales revenue, and year-on-year growth in
advertising market share, alongside savings made from contract
renegotiations - have enabled further investment in editorial
-- Stable circulation exceeding 266,000 copies per day (average audited ABC for Jan-Oct '17 )
-- Saturday's iweekend edition has seen circulation increase on
average by 12,000 since re-launch in September 2017 (unaudited)
Johnston Press plc ("Johnston Press" or "the Company") today
updates the market that the i newspaper is trading in line with its
ambitious plan, with EBITDA in September, October and November
averaging GBP1 million per month, for the first time since
acquisition.
Johnston Press purchased the title for GBP24m in April 2016 from
The Independent*, part of ESI Media. Prior to acquisition, the i
newspaper delivered annual EBITDA of GBP5.2m on revenues of
GBP26.1m for the year ended 27 September 2015.
In Johnston Press' Q3 '17 trading update in November, it
announced total like-for-like revenues for the i increasing 17% in
the quarter (with print advertising up 14% year on year). The i
newspaper's increased revenues and improved profit margin is the
result of the Johnston Press management's strategy of investing in
improved content under editor Oly Duff's clear leadership,
increased brand awareness, distribution, and advertiser solutions,
while delivering efficiencies.
Over the last nineteen months, there has been a significant
investment in the editorial team, with further roles planned for Q1
of 2018, including a Policy Editor with a Brexit focus and
inews.co.uk Head of Audience Development - bringing the headcount
up to sixty-six. Alongside this investment, Johnston Press has
taken steps to maximise the value and appeal of the brand to both
print and digital audiences. This included a relaunch of its
Saturday offering in September, with a fresh new iweekend product,
which is now attracting 12,000 additional readers each week
compared to pre-launch.
Under Johnston Press, the i newspaper's market share of main
news advertisers has seen growth of 2%; from 20% during the
pre-acquisition period of January - November 2015 to 22% in January
- November 2017 (addynamix). Total print and digital advertising
revenue has grown 17%, year-on-year for January - November
2017.
Since acquisition, the Monday to Friday cover price has risen
from 40p to 60p, with iweekend now at 80p, continuing to offer
exceptional value. Circulation has remained steady at 266,000,
verified by the Audit Bureau of Circulation Data. The i newspaper's
market share among the quality newspapers has increased from 17.5%
at acquisition to 20%; a significant achievement for a 7-year-old
title, in an established market.
The i newspaper has broader geographical appeal than its
competitors, with 85% of its circulation coming from outside of
London. To capitalise on this, Johnston Press has created a Central
Investigative Journalism Unit that creates national campaigns for
the i and multiple local spin-off campaigns across the Johnston
Press network.
The British Press Awards, the Foreign Press Association and the
News Awards are among many awarding-bodies that have shortlisted
the i newspaper in 2017, with the Campaign Big Awards recently
awarding the paper's 2017 General Election campaign with Print Ad
of the year.
The launch of inews.co.uk on acquisition - evolving the brand
from a print-only proposition to multi-media - has also been a
success, attracting over 2 million unique viewers per month from a
standing start.
The investment in the product has been underpinned by tight cost
management, contract renegotiation and reductions to inherited
costs.
Together, these strategic changes have enabled Johnston Press to
more than meet the objectives for the acquisition as outlined in
the shareholders' circular issued in March 2016, and provide a
platform for the future.
The Group, as a whole, continues to make good progress with its
strategic initiatives and, while trading conditions remain very
challenging, the Board of Johnston Press remains confident that
trading for the full year will be in line with its
expectations.
Ashley Highfield, Chief Executive of Johnston Press, said:
"The i newspaper is a unique offering: quality impartial
journalism in a concise format with an eye to value for money. It's
broadening appeal amongst both readers and advertisers since
Johnston Press acquired the title is testament to its quality and
trusted content, alongside a clear and successful strategy. We will
continue to innovate around this fantastic newspaper and build on
its national appeal, in both print and digital - as we progress as
a modern multi-media group."
*Independent Print Ltd
-ends-
Enquiries:
Johnston Press plc
Ashley Highfield, CEO
David King, CFO 020 7612 2600
Powerscourt 020 7250 1446
Rory Godson jp@powerscourt-group.com
Peter Ogden
John Elliott
Notes
About Johnston Press
Johnston Press is a leading multimedia business with a vibrant
mix of news brands that reach national, regional and local
audiences. We provide news and information services to local and
regional communities through our extensive portfolio of hundreds of
publications and websites.
Sharing information and opinion remains at the heart of what we
do and our titles, which include iconic publications such as the i
newspaper, The Scotsman, The Yorkshire Post and News Letter in
Northern Ireland are read via traditional print, online platforms
and mobile devices by 37.8 million people every month.
We are experts in combining national reach with local targeting
and are better equipped than ever to help advertisers tell their
stories, too, through our trusted platforms.
Forward-looking statements
The report contains forward looking statements. Although the
Group believes that the expectation reflected in these forward-
looking statements are reasonable, it can give no assurance that
the expectations will prove to have been correct. Due to the
inherent uncertainties, including both economic and business risk
factors underlying such forward looking information, actual results
may differ materially from those expressed or implied by these
forward looking statements. The Group undertakes no obligation to
update any forward-looking statements, whether as a result of new
information, future events, or otherwise.
Market abuse regulation
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
Johnston Press Legal Entity Identifier: 213800JFIBCR4LGUA242
Classification: Inside Information.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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