ENGLAND'S largest regional and local newspaper publisher, Newsquest, today announced a sharp rise in profits, reflecting its rapid expansion.

The group, which owns the Lancashire Evening Telegraph, reported profits before tax of £17.3 million for the three months to April 5, up from £9 million in the three months to March 31, 1997. Turnover was up from £71 million to £79.5 million.

Figures were lifted by an increase in underlying operating profits, from £17.7 million to £21.9 million, and a fall in the interest charge from £8.7 million to £4.6 million.

Over the period, classified advertising revenue rose from £40.5 million to £45.8 million and display advertising revenue edged up from £18.8 million to £19 million, as did circulation revenue, up from £10 million to £10.1 million. Direct marketing revenues rose from £2.5 million to £2.7 million, while other revenues fell from £2.5 million to £1.6 million, reflecting its decision to reduce the amount of third party printing to print more of its own titles on its own presses.

Newsquest publishes other titles, including Northern Echo, Brighton Argus, Oxford Mail, Surrey Comet and the Bolton Evening News.

It floated on the stock market last October following the merger of the original Newsquest group, which came out of Reed and regional newspaper publisher Westminster Press, formerly part of Pearson.

Earlier this week Newsquest bought Review Free Newspapers based in St Albans, publisher of three free newspapers to 128,000 households in Watford, St Albans, Welwyn and Hatfield, for more than £6 million.

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