June 3, 2018
The launch of the General Data Protection Regulation has been blamed for a 9% reduction in the incomes of the Johnston Press Media Group.
Johnston Press manages roughly 200 newspapers and websites all over the United Kingdom and Ireland. Its top titles include The Scotsman, Derry Journal, and Belfast News.
Total group incomes declined by 9% over the first half of 2018 on the back of this weak performance. In addition to the expenses of GDPR compliance, the future expenditure of paper is a disturbing factor for the business.
The group issued a statement which stated: “The trading situation remains very demanding, worsened in recent months by indecision around future paper prices and the effect of GDPR on digital advertising incomes.”
Limitations on digital advertising under GDPR resulted in the group painting a gloomy outlook for the second half of 2018. Together with this the Johnston Press are also presently finishing a reorganization review before June 2019.
After the announcement shares in the group dropped by 17.6 percent to a record low after the publishing company stated the new European Union legislative alterations to data secrecy laws were impacting its online advertising income, telling the new regime as “awfully challenging”.
Last month group Chief Executive, Ashley Highfield stepped down from his position mentioning family causes for his leaving. Mr. Highfield, who had been in the job is being substituted by David King. He (Highfield) led the purchase of the i newspaper.
Johnston Press chairwoman Camilla Rhodes, speaking at the moment of Mr. Highfield’s leaving being proclaimed said that he had completed a remarkable job in reorganizing the company. She said “Ashley supervised the successful purchase of the i newspaper, has motivated development in our digital footprint, while making considerable progress in reorganizing and rearranging our company. We wish him every achievement in the next stage of his profession.
She went on to speak concerning his substitution remarking: “I am delighted to declare that David King will step up to become CEO. David has worked intimately with the Board on our strategic evaluation of funding alternatives. I am assured that David will turn out to be a strong leader and his change to the CEO position provides strength to the company at this important time.”