Reporting 2007 full-year results, regional press group Johnston said that, while print advertising revenues were down in the early weeks of 2008, digital revenues were continuing to grow strongly. But while the group expected the growth to continue in its digital activities, it expected a “general lack of confidence” in economic conditions to dominate in 2008, suggesting that “advertising markets will remain challenging.”

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Revenue was up 0.9 percent to £607.5 million pounds in the year while profit before tax and non-recurring items fell 7 percent to £137.4 million pounds. According to Reuters (NSDQ: RTRSY), Johnston Press slightly exceeded analyst expectations. Its poll of 12 analysts forecast revenue of £605.9 million pounds.

On the digital side, Johnston Press said while they were “committed” to expanding its digital media offering, they reiterated that they would do this “primarily by organic investment rather than acquisition,” adding they were “confident” such an approach would achieve “continued and rapid profitable growth.”

In 2007, digital revenues were up 34 percent to £15.1 million. Johnston currently operates 323 web sites. In 2007, the number of unique users to its sites rose to 24 percent and page impressions were up 53 percent. The group attributed the growth to its “considerable investment” it made in its web sites in the last 12 months, plus the restructuring of its newsrooms to operate on a “multimedia” basis. That is, the newsrooms update the sites several times a day to include more breaking news, and also provide audiovisual content.

The group also reported that it sees the potential of developing new digital revenue streams around the creation of new online communities, though its efforts to create wider “communities of interest” was still in the “embryonic stage.”

Finally, Johnston Press reported they were making better cross-promotional use of their print and digital platforms, noting that during the year, a breaking story on the web translated into increased sales of newspapers. It said its combined reach of print and digital channels increased its local market penetration, which should continue to expand.