Biggest decline is in job adverts
Publisher Johnston Press has reported a 9.1 per cent drop in advertising revenue in the first 18 weeks of its financial year.
Advertising was down across all categories, though Johnston Press said the decline had slowed across most, though job adverts suffered the biggest drop compared to last year.
Circulation revenues also fell by two per cent on the same period last year, with its two flagship Scottish titles, The Scotsman and Scotland on Sunday, reporting circulation declines of 10 and 14 per cent respectively over the past year.
However, the latest trading update from the group shows a near 14 per cent rise in digital revenues compared with last year.
Johnston Press, which also publishes around 250 regional newspapers, reported a loss of £143.8 million for the 2011 financial year compared to a pre-tax profit of £16.5 million a year earlier.
Those losses stemmed from a £163.7 million impairment charge on the value of its publishing titles compared with a charge of £13.1 million for 2010.
The book value of the Johnston Press titles has been cut from £907 million in 2010 to £742.8 million last year.
This came from a change in the discount rate of the value of the papers from nine to 11 per cent to reflect the value of its titles in the current economic climate.
Johnston Press said at the year-end it would continue to focus on cost control and expected to make “further cost savings” this year to “reflect lower revenues and the on-going re-engineering of the business”.
The group, which employs more than 5,200 people, cut 670 jobs last year.