Trinity Mirror plc has announced its half yearly figures this morning, with news that the acquisition of GMG Regional Media has “proved highly successful.”
Since completing the purchase, the publisher states that the division has delivered a strong revenue (£18.2m) and profit performance (operating profit £2.7m).
“We have made good progress in integrating the GMG Regional Media business into our Regionals division. S&B Media is now fully integrated into our business in the South. MEN Media is scheduled to relocate to our freehold building at our print plant in Chadderton, Greater Manchester in September, though the business will retain a city centre presence in Manchester. Our management teams are ensuring that best practice is shared between our existing and acquired Regionals businesses and that the new operating model is implemented,” read the statement to the Stock Exchange.
Overall, Trinity Mirror’s operating profits rose 25.7% to £61.7m (2009: £49.1m), although revenue remained steady at £382.2m.
Bailey
“This was achieved despite a fragile economy and volatile trading conditions. We have continued to invest in the business through the downturn in strengthening the portfolio and delivering IT led efficiencies, in addition to maintaining a keen focus on costs. We are now reaping the benefits of these actions with profits increasing and slowing rates of decline in underlying revenues. The acquisition of GMG Regional Media was a clear demonstration of our ability to lead consolidation in regional media in a way that adds substantial value for shareholders,” said Sly Bailey, Chief Executive of Trinity Mirror plc.
“Looking ahead to the second half of the year we remain cautious on the economy but are confident of delivering a robust performance for the full year driven by stabilising revenues and continued cost efficiencies.”
The company has bought new IT systems, to change how it publishes across its editorial, advertising and pre-press, but it says that this is not trying to get rid of staff as a result.
Even so there remains a focus on cost reductions, having achieved a £15m reduction in structural cost savings over the period, it has now increased its target to £25m over the full year.
“Whilst the Group is disappointed that the new Government will not progress with even the pilots for Independently Funded News Consortia, it notes with interest the recently announced plans to relax all local cross media ownership regulations. Any increase in flexibility provided by relaxation in media ownership rules presents potential opportunities to react to market changes and consider cross platform options in an era when traditional platform distinctions are increasingly irrelevant to the consumer.”
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