Trinity Mirror doubles down on cuts to offset print decline
Trinity Mirror has been forced to redouble its efforts slash costs in an effort to keep pace with ever declining print revenues with the announcement that it intends to double planned cuts to realise £20m in savings.
The publishing group had announced just three months ago that it planned to find £10m in structural savings but this initiative has been overtaken by events as the scale of the challenge outlined in a trading update for the first half of 2015.
This showed a precipitous 11 per cent decline in print revenues (despite a cover price increase to 60p) with print advertising dipping by 19 per cent and a 6 per cent decline in circulation. On the plus side digital revenues continue to increase, rising by 40 per cent on the back of a 50 per cent increase in online audiences.
In a statement Trinity said: “The revenue environment has remained challenging throughout the first half, continuing the trends experienced at the end of 2014. Whilst monthly revenue trends are expected to be impacted by further volatility for the rest of the year, at this stage, the board continues to expect profits for the year to be in line with expectations.”
Despite these numbers and the ongoing fall-out from the phone hacking scandal Trinity remains confident of turning a profit for the year, after making £102.3m in profit last year.