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Trinity announces a ‘good performance’ at regionals but further cuts expected |
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Friday, 29 February 2008 |
Trinity Mirror plc has announced its preliminary results for the year ending December 2007 which has seen a modest overall increase in revenue while operating profit moved strongly back into profit (£29.4m) following a loss (£62.4m) in 2006.
The publisher said its regionals division, which is based in the North West, and still provides the majority of the company’s profit, achieved a “a good performance despite the volatile advertising market.”
Profits from the regionals division were £109m out of total group profits of £191m. This figure however is down by 4.6% against 2006 and the company said it was seeking to reduce the cost base within regionals by a further £7m in 2008, having reduced costs by circa £13m in 2007. The company said that an added focus on product was starting to pay off as progress was being made building a ‘multi-platform’ regional media business . In addition to the expansion of digital, the company has continued to launch new print titles and is expanding its events and exhibitions activities.
Revenue from digital activities rose 33.3% while online traffic rose overall during 2007 by 27.8% compared to 2006. Trinity said this success reflects the effort is has invested in launching a number of ‘companion’ websites to its existing print titles together with the launch of micro sites serving local communities and dedicated websites address local and regional advertising markets such as recruitment, property and motors.
Digital revenues now represent 3.7% of the company’s total revenues and 6.7% of its advertising revenues
For the coming year, the company plans to maximise the performance of its core regional titles with continued development in print, digital and new related marketing initiatives. Expect to see too an ongoing focus on cost savings as the company continues to invest in new technology.
Sly Bailey, chief executive of Trinity Mirror plc said: ‘In challenging trading conditions we delivered a strong performance in 2007. Although we are cautious about trading in 2008, the board anticipates a satisfactory performance for the year.”
Bailey added that the company experienced an improving advertising environment in 2007 although there was month by month volatility and they expected this to continue through 2008.
Ad revenues are expected to fall by around 3% for January and February this year but the company still anticipates a “satisfactory performance for 2008.”
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