JP warns of ad market 'challenges' as earnings hit

NEWSPAPER group Johnston Press today warned that advertising markets will remain "challenging" as it posted a 6.3 per cent drop in pre-tax profits over the past year.

The owner of the Evening News, The Scotsman and Scotland on Sunday newspapers, saw pre-tax profits drop to £137.4 million despite a 0.9 per cent rise in revenue to £607.5m over the year to December 31.

In its update, the company said that early print advertising revenues had not started 2008 as well as they did last year, and warned that a "general lack of confidence" would continue to make advertising markets challenging.

Chairman Roger Parry said: "

Although we expect continued strong growth from our digital activities, the main factor influencing 2008 is expected to be a continued general lack of confidence which suggests that advertising markets will remain challenging."

The company also said that it was continuing to expand its online business and highlighted the scotsman.com website as one of the best performing areas across its titles in terms of "viewer engagement".