Johnston Press to sell titles as digital focus intensifies

As well as confirming profits in line with forecasts, local newspaper publisher Johnston Press said it may sell several of its non-core titles in order to focus on digital growth.

The company, whose titles range from dailies such as the Scotsman and the Yorkshire Post to around 190 weeklies like the the Sleaford Standard and Mid-Sussex Times, said the underlying earnings before interest, tax, depreciation and amortisation and net debt for the 52 weeks to 2 January were in line with expectations.

This was despite a 7% decline in underlying total revenues compared to the prior year, with underlying digital revenues up 12% and print advertising revenues down 12%.

The focus on digital has seen monthly unique user numbers to 22.6m in December, up from an average of 16.7m in 2014.

In the wake of a major editorial management reshuffle in December, a portfolio review has singled out a number of brands "that are not part of its long-term future, as they fall outside its selected markets, or do not match the audience focus, or do not offer the levels of digital growth sought by the group".

The disposal process has begun, a statement from the company said, implying buyers had also been identified.

"If the disposal process is successful in realising appropriate value for the assets, proceeds will be used to fund on-going investment in preferred markets and to further deleverage the group."

The reasons for the disposals are clear, with the group's national print and digital display revenues up 3% year on year driven by a 99% increase in revenue from 1XL, the digital advertising exchange partnership, while local display revenues were down 7%.

JPR shares were up 11% to 39.63p with an hour to go before the close on Tuesday.