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Tuesday, June 14, 2005

UK: regional paper increases profits as circulation decreases

Competition from free papers and the Internet have caused a steady decline in circulation for the Yorkshire Post, a regional British daily, culminating in a 5% loss last year, reports the Guardian. Nevertheless, the Post enjoyed a 34% profit margin last year. In the past 10 years, the Yorkshire Press has bounced between four owners where in its previous 240 years of existence, it had had but one. Johnston Press, the newspaper company that bought the Post in 2002 and who witnessed the same profit percentage from its 244 newspapers, is heralded as the stimulus of the paper's margins. Although some worry that content is being sacrificed for profits, of the 122 jobs the company slashed last year, 37 were actually added to their total editorial staff. Of course salaries are low, but journalists who go into regional papers don't expect to be paid well to begin with. The staff of the Yorkshire Press believes that Johnston is actually treating them better than their previous 3 owners who were only after profit. Johnston's CEO, Tim Bowdler, happy with the purchase of the Yorkshire Press, would still like to see a rise in circulation. "You can never be completely happy until you can see sales grow," he said.

Source: The Guardian

Posted by john burke on June 14, 2005 at 04:28 PM in h. Young readers / New readers, j. Staff changes, r. Revenues and business models | Permalink

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