Stephen Timms Follows Up On Council Newspapers Issue
Digital Economy Minister Stephen Timms is following up on his recent meeting with the NS on local authority publications.
He has arranged for an urgent meeting between the NS with Local Government Minister Rosie Winterton and is looking into referring the matter to the OFT, which the Government had confirmed it would do once the Audit Commission had reported.
The Local Government Chronicle last week reported that “the Office of Fair Trading (OFT) is poised to investigate local newspaper publishers’ claims that they endure unfair competition from council publications, many of which now carry private advertising.”
Meanwhile, Shadow Secretary of State for Communities and Local Government, Caroline Spelman, told the NS that a Conservative Government would stop councils competing with local newspapers.
Rosie Winterton had previously been reluctant to meet with the local newspaper industry to discuss the issue of council-run publications, after the NS requested a meeting with her last summer. A date for Ms Winterton’s meeting with the NS is currently being arranged.
The NS also met with Shadow Minister for Culture Ed Vaizey last week to discuss issues facing the local media industry, including council newspapers, government advertising and cross media ownership regulations.
For further information please contact Lynne Anderson on lynne_anderson@newspapersoc.org.uk or 020 7632 7421.
Archant Results Show Signs of Ad Market Improvement
Archant’s financial results for 2009 have indicated some signs of improvement in trading conditions in the second half of the year and substantial growth in digital audiences and revenues.
In a preliminary statement to shareholders, Archant chairman Richard Jewson said turnover for the group fell 19 per cent to £142.0m (2008: £175.1m) and operating profit fell 32 per cent to £15.1m (2008: £22.2m) the year to 31December, 2009.
However, operating profit doubled in the second half year, compared to the first half, reflecting the reduced cost base and some signs of improvement in trading conditions, and was up 11 per cent against the second half of 2008.
Average monthly unique visitors for the group’s portfolio of 180 websites were up 36.6 per cent and total annual page impressions were up by 19.2 per cent, with online revenues increasing 25.2 per cent.
There was significant activity throughout the year to conserve cash and seek efficiencies and total operating costs were reduced by £26.1m, a saving of 17.1 per cent.
The group completed the refinancing of its bank facilities in December 2009 and the board is confident that this provides sufficient working capital and headroom to pursue its current strategies.
The rate of development of online and mobile technology activities accelerated in the year with the emphasis being on growing revenue streams from existing sites and the launch of new services, Archant said.
Richard Jewson said: “2009 was a most challenging year with significant declines in all advertising categories. The new management team proved well up to the task, taking swift and decisive steps to reduce the cost base and launching a number of new business initiatives.”
Archant’s AGM takes place on 20 April at the Assembly House in Norwich.
The publisher also announced this week that Archant Dialogue managing director and former Norwich Evening News editor Bob Crawley has been appointed as Archant London’s editorial director.
His remit is to help underpin expansion plans for Archant London’s portfolio of 29 weekly newspapers and around 30 local community websites.
For further information please contact Paul Sinker on 020 763 274 24 or sinkerp@newspapersoc.org.uk.
BBC Mobile Apps: NPA Calls for Public Value Test
Britain’s national newspaper industry is calling on the BBC Trust to undertake a Public Value Test to examine the BBC’s plans to launch a range of free mobile applications for smart phones before the first of these are launched in April.
The Newspaper Publishers Association (NPA) has written to Sir Michael Lyons, chairman of the BBC Trust, and to the BBC’s director general Mark Thompson, to express the industry’s deep concern that the BBC would be allowed to launch such services without prior scrutiny.
David Newell, director of the NPA, highlighted the BBC Trust’s “current attitude and inaction” and questioned why they were “refusing even to examine the BBC’s plans prior to launch under the Public Value Test, when they know that the BBC will be launching such applications in direct competition with commercial operators’ paid-for or ad-funded applications for their online services?”
He wrote: “The BBC Trust’s apparent acquiescence in the BBC’s damaging expansion is even more concerning in view of the clash between the BBC’s proposals and the BBC Online Service Licence’s key characteristics and remit requirements that ‘BBC Online should, at all times, balance the potential for creating public value against the risk of negative market impact.’ ”
The NPA letter points out that the BBC had “a history of assuring its competitors that it is merely developing its existing services, rather than launching competing new services or effecting a significant change, so regulatory oversight is unnecessary.” Such assurances were offered over the BBC Local proposals but, when ultimately subjected to a PVT, these were turned down on public value grounds after a finding of negative market impact by Ofcom.
Newell added that the BBC’s proposals for entry into the Smartphone applications market must be subjected to a detailed evaluation under the Public Value Test by the BBC Trust, before the BBC begins to roll out the apps in the UK or globally.
For further information please contact Tim Brooks, NPA chairman, on 020 3353 2000
JP Results: Ad & Circulation Revenue Performance Improving
Johnston Press’ results for 2009 show that advertising revenues stabilised in the second half of the year with year-on-year growth in two classified advertising categories.
Publishing its results for the 53 weeks ended 2 January, Johnston Press said overall advertising revenues had fallen in 2009, but the decline was slowing.
According to a Reuters report, the publisher had performed ahead of analysts expectations. Johnston Press said it continues to deliver market leading operating margins (16.8%) and the business remains highly cash generative. Successful refinancing of debt facilities in August for the next three years, combined with a reduction in net debt by £55.3m and positive trading expectations, meant there were no plans to raise capital.
Like-for-like advertising fell by 26.5 per cent on 2008 but the rate of decline reduced throughout the period with the first quarter down 33.9 per cent and the final quarter down 11.2 per cent. This trend continuing into 2010 with like-for-like decline of 7.3 per cent in the first nine weeks, the publisher said.
John Fry, Johnston Press chief executive said: “The year ended with the Group in a much stronger position than it began: advertising is more stable; circulation trends have improved; digital revenues are growing; our cost base has reduced significantly and we have renegotiated finance facilities for three years.
“We are therefore well positioned to take advantage of any upturn as it occurs. Since the successful refinancing of our debt announced at the end of August 2009 we have been trading in line with the expectations we had at the time. That being the case we have no immediate plans to raise capital.”
The group’s classified results showed property had experienced year-on-year growth in both November and December and motors had experienced year-on-year growth in December.
An editorial review process, using a mix of reader research and peer review, had been implemented to ensure newspapers across the group were focused on the needs of their local communities. The result had been a reduction in the rate of circulation decline for both dailies and weeklies. A new editorial content management system was being rolled out across the group. The focus was on improving the business through back-end systems and processes while maintaining the frontline presence of local journalists and sales people in their communities.
At the group’s annual general meeting in Edinburgh on 30 April, Freddie Johnston will step down from the board after serving as a Johnston Press director for 50 years.
For further information please contact Paul Sinker on 020 763 274 24 or sinkerp@newspapersoc.org.uk.
Spelman: Tories Would Stop Councils Competing with Local Papers
Caroline Spelman, Shadow Communities and Local Government Spokesperson, was the guest at a Newspaper Society lunch today (Thursday).
She was outspoken in her condemnation of ‘taxpayer funded media’ and promised that a Conservative Government would tighten the Local Authority Publicity Code so that any council output was focused on council services and did not compete with the independent local media.
She said previous changes to the Publicity Code had “opened the floodgates” in terms of competitive council media. “We have even seen taxpayer-subsidised local TV,” she said.
She noted that £430 million was spent on council publicity – twice the figure from 1997.
The Conservatives would require councils “to publish online exactly what they were spending on their publications” with a full breakdown of print costs, design and delivery, and editorial.
She also agreed that public notices, such as planning notices, must continue to appear in the independent free press.
- Tories would force town halls to disclose full cost of council newspapers (Media Guardian)
- NS Calls for Government Intervention on Competing Council Newspapers:
TM Results Ahead of Expectations as Ad Performance Improves
The City responded well to Trinity Mirror’s preliminary results, with the group’s share price up 6% in early trading today.
“Whilst the severity of the economic downturn experienced during 2009 impacted group revenues, the resilience of our brands and commitment of our staff ensured that we delivered profits ahead of expectations,” said chief executive Sly Bailey.
There had been an improvement in advertising revenue trends as the year progressed which was expected to continue into 2010.
- Trinity Mirror’s Preliminary Results for the 53 weeks ended 3 January 2010
- This is Money: Trinity Mirror Up
- Sharecast.com: Trinity Mirror Sees Advertising Improvement
New Awards Aim to Showcase Local Media’s Armed Forces Coverage
The importance of local media in rallying support for the Armed Forces has been acknowledged by the Royal British Legion in a new national awards scheme backed by Prince Harry.
The charity is calling upon local newspapers across the UK to enter the Friends of the Forces Awards which celebrates people or organisations which have contributed to the well-being or appreciation of the Armed Forces.
Local newspapers activities with the military have included sending correspondents to war zones such as Iraq and Afghanistan to report on the activities of local troops and organising homecoming parades for soldiers returning from conflicts.
A spokeswoman for the Royal British Legion said: “The Royal British Legion has just launched a new national awards scheme, with support from Prince Harry, to find members of the public or organisations that go out of their way to support the British Armed Forces.
“We are aware of many local newspapers who mount campaigns and rally local support for the Armed Forces and we would like to encourage them to put forward nominations.”
For details on how to apply to the Friends of the Forces Awards click here.
For further information please contact Paul Sinker at 020 763 274 24 or sinkerp@newspapersoc.org.uk.
Council Leader Admits No Proof Anyone Read Axed Council Newspaper
A council newspaper in North Yorkshire has been scrapped because there was “no proof” anyone was reading it, a council leader has admitted.
Richmondshire District Council councillors took the decision to scrap The Curlew last week, the Northern Echo reported.
Conservative council leader Fleur Butler said: “The Curlew was seen as a luxury we can’t really afford any more.
“We need to communicate and talk to people in the district, but there was no proof that anyone was reading it.
“When you start looking at savings you look at what is effective and what is not working and it was felt that we need a better way than just putting it in a generic spreadsheet.”
Scrapping the twice-yearly paper will save the council £11,500 a year in printing and delivery costs, with the expected savings in staff hours still to be worked out.
Councillor Stuart Parsons, a Liberal Democrat, who originally proposed The Curlew’s abolition, said: “The lack of debate about getting rid of The Curlew says it all. It was a pointless exercise and a waste of time, energy, paper and, unfortunately, taxpayers’ money.”
For further information please contact Paul Sinker on 020 763 274 24 or sinkerp@newspapersoc.org.uk.
NS Seeks Meetings with BBC on Strategy Review Proposals
The local media industry is seeking meetings with the BBC and BBC Trust to understand precisely what the proposals outlined in the BBC Strategy Review on Tuesday will mean for the local media sector, including additional investment in local journalism and refocusing of the BBC’s 60 local websites.
Among the proposals in the 64-page report is: “Never more local: undertaking not to launch services more local than at present in England.” The reports says that the BBC’s local websites “will be refocused to carry only news, sport, weather, travel and local knowledge content. A new ‘contract for local’ will define a series of BBC commitments and limits, including a commitment to never becoming any more local in England – that is, never to increase the BBC’s number of local services on television, radio and online or to make any existing services more local.”
It says the BBC will limit activity by “leaving room for local newspapers and others to develop in a digital world by keeping the BBC’s current pattern of local services, and not launching new services in England at any more local a level than today.” It points to clearer BBC behaviour by “taking a precautionary approach to market impact, within existing as well as proposed new services.”
The NS said: “In view of past experiences, the industry will need to be convinced that any limitations will be imposed or will work in practice, enabling local newspapers to develop their digital services.”
The BBC Executive’s proposals are currently subject to a 12-week public consultation which will be completed before the BBC Trust publishes its final conclusions on the review.
The proposals will be discussed at a meeting of NS members later today (Thursday).
- BBC strategy review
- BBC Local background & submissions
- Independent: This is not the revolution that the BBC needs
For more information please contact Lynne Anderson on 020 7632 7421 or email lynne_anderson@newspapersoc.org.uk.
Locally Connected Goes Global
Locally Connected, the UK’s first print and online audience measurement currency, will be presented by JICREG chairman Howard Scott to WAN-IFRA’s World Newspapers Advertising Conference in Copenhagen next week. The system is already attracting interest from the US and Far East.
The system will be updated with new web traffic and print circulation data figures published by ABC today (Thursday). The data will be used to update JICREG and Locally Connected over the next couple of months.
Launched by the NS last year, Locally Connected now has eight member publishers after the KM Group joined in January.
Representing over 72 per cent of the local media industry, the other members are Trinity Mirror, Northcliffe Media, Johnston Press, Newsquest, Guardian Media Group, Midland News Association and Iliffe News & Media.
- WAN-IFRA’s 20th World Newspapers Advertising Conference & Expo
- Locally Connected background & methodology
For more information please contact Lynne Anderson on 020 7632 7421 or email lynne_anderson@newspapersoc.org.uk.