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Trinity Mirror posts pre-tax profit despite 8.5% revenue fall as advertising and circulation figures also decline

Trinity Mirror has reported a pre-tax profit increase of 2.5 per cent, reaching £49.3m despite seeing a 8.5 per cent drop in adjusted revenue of over £30m during the first half of 2012.

Releasing its first half-year figures ending on 30 June, the company revealed adjusted revenue figures of £332m, down from £362.8m reported during the same period last year, but also reported pre-tax profit growth of £1.2m on the same period.

Advertising revenue declined by 12.6 per cent to £132.1m during the first six months, with circulation revenue also down by 6.2 per cent to £144.2m.

Revenue in July declined by 6.5 per cent, as circulation revenue fell by 2.3 per cent, advertising revenue fell by 11.7 per cent and other revenue was down by 10.6 per cent, the company has also revealed.

Meanwhile, following its 20 per cent stake in Local World being cleared by the Office of Fair Trading last month, the company has revealed that the local publishing joint venture has made a post-tax profit of £2.7m during its first six months of trading.

The publisher of the Mirror, The Daily Record and The People, also reported a growth in digital display advertising by 15.1 per cent, as monthly unique users to its websites grew by 36.9 per cent, and monthly average visits also rose by almost half (48.6 per cent).

Following the launch of its newspaper purchasing app PaperPay earlier this year, the company reported that the service was now available across 47,000 UK newsagents, with 5,000 readers having used the service. The company has said that third party newspaper groups now ‘in discussions’ about adopting the service too.

Social media site UsVsTh3m was launched in May, as part of the company’s ‘mobile first’ approach to focus on social sharing, recording 464,000 unique visitors during June.

Simon Fox, CEO of Trinity Mirror said: "I am pleased with the progress we have made in the first half. The Group is producing some outstanding journalism and in a challenging market is outperforming its peers on a number of measures in both print and online. Whilst still at an early stage, our transformation plan has got off to an encouraging start and this provides me with confidence in the performance for the year. "

Despite the revenue decline, Trinity Mirror also revealed that it had reduced its net debt to £120.3m.

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