Page 5 - Newspaper of the Future Case Study
P. 5
General industry figures
The newspaper industry was in a state of decline as circulation
figures were continually eroded as more and more people sought
their news online. Moreover, the depth of this news was markedly
different from the traditionally, more in-depth offering of
newspapers.
In the last financial year (ended 31 December 2004) pre JP acquisition,
Scotsman Publications reported profit before interest and tax of £7.7m on
turnover of £63.5m.
Johnston Press
Johnston Press plc is a multimedia company, headquartered in Edinburgh
(since its acquisition of The Scotsman Publications Ltd). Its flagship titles are
The Scotsman, the Yorkshire Post and the Falkirk Herald; it also operates
around 250 other newspapers throughout the United Kingdom, Northern
Ireland and the Isle of Man and over 90 web sites.
JP had, by acquisition and subsequent cost control of profitable though
unglamorous local newspapers, grown to become one of the four largest
newspaper owners in the UK and a favourite of investors. The group had
borrowed extensively to fund its expansion. Within 12 months of the Scotsman
