Another newspaper giant has today announced falling profit margins.
But as with Archant earlier this month, figures from Johnston Press suggest some light at the end of the tunnel.
Archant’s overall decline in operating profits of 32 per cent look bleak, but the company saw an upturn towards the end of the year.
Today’s figures from JP reveal it made operating profits of £71.8million at a margin of 16.8 per cent.
The company, of course, has taken huge hits compared to previous years (income has fallen by £103.9m to £477.3m) and it has £400+million of debt to worry about.
But despite this profits still seem to be high and most staff members would probably see a 16.8 per cent margin as pretty high.
It is a shame therefore that the axe has continued to fall on jobs, particularly with the cull of subs following the introduction of the ATEX system.
Chief executive John Fry says the company is now well positioned to bounce out of the downturn, but surely a few subs and more reporters would help?
Or doesn’t he believe quality editorial in papers increases advertising revenue?
State of Play: We await the ‘boom’…