Mecom announce profit decline, prompting recruitment fears

European newspaper group Mecom has reported a three per cent drop in like-for-like profits for the first half of the year.

The company, which owns and runs newspapers across five European countries, has reported the three per cent drop in profits alongside a two per cent drop in advertising revenue.

Operating profits for the first half of the year now stand at £64 million.

Critically for many media companies, digital revenue from Mecom's various websites was up a massive 36 per cent compared to last year's figures, showing the incredible focus of online marketing that has set in throughout the past two years.

"The combined businesses are performing well together in the face of a less favourable economic climate and our newspapers remain stable and robust franchises," said the Mecom executive chairman, David Montgomery.

"Cost management and business restructuring will continue to play a fundamental part in countering advertising decline."

Editorial recruitment may well be one area Mecom decides to cut back on, if it is to follow in the footsteps of the Daily Telegraph, which has cut scores of editorial and other jobs this year in order to reduce costs.

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