NEWSPAPER publisher Johnston Press today reported a sharp fall in advertising revenues as the credit crunch continues to slow down corporate spending.
The company, which publishes The Scotsman, Evening News and Scotland on Sunday, said total advertising revenues dropped by 15.5 per cent in the 44 weeks to November 1.
Advertising in newspapers was worst affected, falling 17.4 per cent, although d
igital advertising revenues increased by 36.8 per cent.
When it posted its half year results in August, Johnston Press said total like-for-like advertising revenues on a constant currency basis were down by 9.5 per cent.
Today, the company, headed by chief executive Tim Bowdler, said: "Overall performance has deteriorated since then due to further substantial declines in property advertising combined with significant falls in employment and display advertising as the UK and Republic of Ireland economies suffered from both the 'credit crunch' and a reduction in economic activity."
In the second half of its financial year so far, property advertising was down 48 per cent, while employment fell 32 per cent, motors dropped 24 per cent and display fell by 12 per cent.
Newspaper sales revenues are "slightly down" on the same period of last year with circulation said to be hit by general economic conditions and a significant reduction in levels of interest in the property market.
The firm said it will continue to manage its cost base and reduce debt levels, but said it would still expect to deliver an operating profit at the lower end of expectations.
