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Trinity Mirror

Trinity Mirror profits down by 65% during first half of 2011

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By The Drum Team, Editorial

August 12, 2011 | 3 min read

Trinity Mirror has announced a fall in pre-tax profits of 65% and that its operating profits of nearly a quarter during the first half of this year.

The Newspaper publishing group has said that its pre-tax profits fell from £87.2m in the first half of last year to £40.2m to £87.2m in the first six months of 2011, while its operating profit has fallen 23.7% to £47.1m during the first half of the year, in comparison with last year when it made £61.7m within the same period.

The group’s revenue has also fallen by 2.9% to £371m having made £382.2m during the first half of 2010.

Cost savings made at the company also increased by a further £10m, with a target of £25m, although it was able to lower its pension deficit by £43.6m to £73.9m.

The group continued to find the advertising market ‘difficult’ as a result of low consumer and advertiser confidence, with a decline in advertising revenue of 11.1%, and a fall in public sector advertising spend of 24%.

The publisher has said that the advertising revenue for its regional titles was ‘in line’ with rival publishers, however.

Trinity Mirror’s circulation revenue also declined by 5.4%. This was partially offset by cover price increases.

Meanwhile, the company has said that following the closure of the News of the World in July, a number of publishing and marketing activities were undertaken to grow its share of the Sunday newspaper market. It said, as a result, the early signs for its six newspaper titles, particularly the three national titles, including the Sunday Mirror, were ‘highly encouraging’ and that group circulation revenue rose by 2% year on year, and National grew by 4%.

Sly Bailey, chief executive of Trinity Mirror plc said: "While the economic environment remains difficult we have undertaken a series of actions to limit the impact on operating profit. The roll out of our technology led operating model continues to deliver efficiencies and today we have announced an increase in our 2011 cost savings target to £25 million. At the same time we're investing across the Group to diversify and grow revenues. Following changes to the national Sunday newspaper market we are highly encouraged by the considerable circulation volume growth seen by our national Sunday titles.

"Our focus on maximising profits in the short term through tight management of costs while investing for growth creates a good backdrop for shareholder value creation over time."

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