|
Trinity Mirror warns profits will be 10% lower than expectations |
| Print |
|
Email to a friend
|
|
Tuesday, 01 July 2008 |
Trinity Mirror has warned that a recent sharp slowdown in ad revenue are likely to result in full year operating profits 10% below market expectations – and may deteriorate further.
Trinity is the UK’s largest newspaper group. Group titles include the Daily and Sunday Mirror and a host of regional titles including the Daily Post and Echo and a number of other papers across Merseyside, Cheshire and North Wales.
Under chief executive Sly Bailey, the company has been an active acquirer of websites, usually related to existing Trinity publishing interests.
In April the company bought Liverpool digital agency Rippleffect in a move that observers believed was concluded to capitalise on Trinity’s growing digital sporting interests: Rippleffect works with a number of football clubs.
 A sporting synergy
Advertising in the nationals has experienced lower rates of decline at around 6% while total ad revenue within regionals is down by 7.5% - which suggests in fact that display ads in the regional pres are holding up surprisingly well..
The company said it has experienced an overall decline of just over 7% in ad revenue for the half year to June.
One bright spot in the statement is that digital revenues increased by over 40% in the first half compared to 2007.
In addition to the planned £20m cost savings announced for 2008, Trinity said it would now be looking for additional “efficiencies.” Trading conditions it added were volatile from month to month and "this could worsen.”
Something to add? Then leave a comment below or email us now.
Sponsored links:
|
