Print and advertising revenue at Johnston Press fell 8 per cent year-on-year in the 18 weeks leading up to 5 November, according to an interim financial statement published today.

The decline follows a 10 per cent drop over the first half of the year.

The group, which publishes the Scotsman and Scotland on Sunday and more than 300 regional titles, said today that its largest revenue stream, display advertising, fell a relatively modest 3.4 per cent over the period, in line with the first half of the year.

Employment revenue continues to suffer worse, according to the report, although there was some slowing of the decline from 30.4 per cent in the first half of the year to 19.2 per cent in the second.

Digital revenue was the only sector to see a year-on-year increase, up 4.4. per cent after returning to year-on-year growth in May. Despite the turnaround in May, digital revenues fell 5 per cent overall in the first half the year, a loss of £500,000.

The company credited increased display revenue for the growth following a revamp of its websites, as well as a new "find it" option in its Business Directory.

Overall circulation fell 1.6 per cent over the period, according to the report, performing fractionally better than the first half of the year when it declined by 1.8 per cent.

The company's net debt was £357 million on 5 November, down from £386.7m at the beginning of the year. It hopes a cost-cutting drive will save it £20 million in this financial year.

"With the continued cost savings and the improved advertising declines, we expect full year results for 2011 to be in line with current market expectations," the statement said.

In August, Johnston Press reported a near-50 per cent drop in pre-tax profits
for the 26 weeks ending 2 July, equivalent to a £12.3 million decrease in pre-tax profits year-on-year, from £26.1 million in 2010 to £13.8 million in 2011.

The company saw sustained
industrial action during July and September over job cuts at across the company's newspapers in South Yorkshire.

The National Union of Journalists has accused the company's executives of "enjoying huge pay-offs and grossly distorted remuneration" while cuts are made to newspaper staff.

Chief executive John Fry, who is due to step down in October next year, earned a basic salary
of £525,000 in 2010, bolstered by benefits and a performance-related bonus to a total pay of just over £1 million.

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