Johnston Press ad sales falls, CEO to step down

Regional newspaper publisher Johnston Press said ad sales fell in the last year, following government spending cuts, and expressed caution about the uncertain economic outlook for 2011. The Yorkshire Post and Scotsman publisher said total advertising for the first nine weeks of 2011 fell 11.4% compared with a decline of 6.4% for the 52 weeks ended 1 January 2011. Chairman Ian Russell commented, "The pace and consistency of the economic recovery remains uncertain and this is reflected in a weaker start to 2011 than we had anticipated." Otherwise Johnson reported its first underlying operating profit increase, excluding acquisitions, since 2004. Operating profit increased to £72m during the year compared to £69.3m. Revenue for the year fell to £398.1m from £423.7m before. In a separate statement Johnston announced that chief executive officer John Fry will step down by March 2012. Johnston said it has started the process of looking for a replacement. Last week the newspaper publisher confirmed the appointment of Grant Murray as its chief financial offer, effective from 3 May.