Robust performance as profits slip
Archant has seen a decline in its operating profit for 2006, but with a robust performance in challenging conditions for the media industry.
The company’s preliminary results for 2006 show a fall of 6.8% in operating profit to £29.5m (2005: £31.6m).
In a statement to shareholders, Archant chairman Richard Jewson (pictured above) said: “The company had produced a robust performance in challenging conditions. Whilst advertising revenues were still down on 2005, performance in the second half improved as the rate of decline in advertising revenue slowed.”
Continued progress in magazines and contract publishing saw profits in those businesses, including acquisitions, up 23.7% at £6.1m (2005: £5.0m).
“Structural change in the regional press industry continues,” said Richard. “Media fragmentation is also continuing within the industry, and we have sought to benefit from this by building on the audiences loyal to our titles by increasing our online presence. The results of this continuing programme of investment are encouraging - we are growing revenue and unique visitors to our sites have risen by 66% over the year, with nearly 1.2 million unique visitors in January 2007.”
“We expect conditions to remain challenging in 2007, with advertising demand likely to remain flat and costs, including salaries and newsprint, continuing to rise. We remain confident in the strength of our titles and the skills and commitment of our staff and we are determined to restore the Group’s record of growth as conditions improve.”