24 April 2009

SMITHS NEWS PROFITS DROP

Smiths News, the UK's second-largest newspaper and magazine distributor, has seen its pre-tax profits drop by a third

Revenue fell from £618.4m to £609.4m in the six months to February 2008, while pre-tax profit dipped from £16.1m to £10.7m in the period.

Mark Cashmore, chief executive of the group, acknowledged the "difficult market conditions", but said he anticipated trading would be in line with expectations.

Newspaper revenues increased year-on-year by 2.8% from £326.6m to £335.6m, although were down 2% on the previous six months. The group attributed this to cover-price discounting on red-top titles The Star and The Sun, and News International-owned quality title The Times.

Magazine revenue was down year-on-year by 8% from £265.2 to £243.9m, due for the most part to lower sales of monthly magazines.