Johnston anger over Press takeovers

THE Government and regulators must not stand in the way of further consolidation of regional newspapers, the chairman of Johnston Press Roger Parry declared today.

Speaking as the group revealed the full benefits of its £560m takeover of Regional Independent Media (RIM) two years ago, he said: 'All the evidence suggests that the consolidation of ownership in the regional Press has produced substantial benefits for both readers and advertisers.

'Plurality of editorial voice does not automatically flow from plurality of ownership. We continue to very actively seek acquisition opportunities that would mesh with our existing portfolio of businesses.'

Johnston, with 241 titles, is one of the big four regional publishers yet has only a 14.4% market share.

Chief executive Tim Bowdler said: 'We believe that Johnston Press can expect to grow further, even if over 70% of the sector is in the hands of four publishers.'

But he warned that last year's Communications Act had so far not led to an easing in regulation. He said the Competition Commission took an overly narrow view of market definition which underestimates the extent to which local newspapers are subject to competition from alternative media.

But he said Johnston would be selective in what it buys, pointing out that it did not get involved in the bidding for either Trinity's Irish titles or Independent News & Media's London local papers last year.

In the meantime, organic growth remains strong with advertising revenues up only 3% in the first half of 2003, then 4.6% in the second half and continuing to run at this level this year. Circulation of weekly titles rose by 1.7%, giving the group its seventh consecutive year of increased sales.

Pre-tax profits soared by 38% to £128m on turnover up by 15% at £492m. Earnings rose 21% to 32.3p a share and the dividend is lifted 11% to give a total of 10p.