JOHNSTON PRESS, the regional newspaper group behind the Yorkshire Post, wants to launch local online auction sites to ensure that it fends off the challenge from eBay.

The group, which publishes more than 250 newspapers throughout the country, plans to add an auction capability to its websites from the end of this year as part of an organic expansion of its online offering.

Tim Bowdler, chief executive of Johnston Press, said: “Is this a mini-eBay? I hope not. I see it as an extension of the ‘wanted’ advertisments we have been carrying for years and years. I think people will want to trade many goods locally.”

Johnston Press, in common with Trinity Mirror and Daily Mail and General Trust, is expanding its online operation, although its organic approach contrasts with acquisitions made by its rivals. The newspaper groups are trying to take advantage of the rapidly growing online advertising market, particularly for recruitment, cars and property — all areas where local newspapers are traditionally strong.

Half-year online revenues were up 32 per cent to £4.2 million, while profits increased 48 per cent to £3.2 million. Despite the impressive growth, online remains small. Overall sales in the half were up 1 per cent at £264.6 million and profits before tax up 9 per cent at £82.2 million.

On a like-for-like basis, advertising was down 0.8 per cent and the company is expecting the slight downward trend to continue throughout the year.

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