Trinity Mirror nears 'tipping point' as digital revenue jumps nearly 50%
Trinity Mirror’s digital revenue has increased by nearly 50 per cent year-on-year, according to the publisher’s financials for the first half of 2014.
The increase helped soften the blow of ad and circulation revenue declines as revenue dropped overall by 2.3 per cent year-on-year to £324.2m. Ad revenue fell by 8.8 per cent to 108.3m and circulation revenues were down by 1.2 per cent to £142.5m.
'Tipping point': Trinity Mirror CEO Simon Fox
The digital revenue increase of 47.5 per cent took the figure to £14.9m, while average monthly users almost doubled with an increase of 91 per cent to 61.3 million.
The publisher said 2014’s first half performance was better than expected and the company was reaching a “tipping point”.
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“They are a very good set of results that indicate good progression in our strategy,” said CEO Simon Fox. “Digital has been particularly impressive.
“Total revenues are still down but the trends are very encouraging. We are getting closer to that tipping point. The strategy clearly is to be a growing business, revenues as well as profits.”
The digital results follow a £3m investment in the first half of the year, some of which went towards online World Cup services.
The publisher said it expects to make £10m in cost savings in 2014 and Trinity Mirror’s share price increased by 5.3 per cent to 188p in early trading.
The company publisher also revealed in its first half financials that it has set aside a pot of £4m to deal with claims relating to phone-hacking. Trinity Mirror is currently dealing with 17 civil claims.