Trinity Mirror profits continue to decline despite NoW boost

Trinity Mirror, publisher of the Daily Mirror and Sunday Mirror and more than a hundred regional titles, has announced a 17 per cent drop in adjusted pre-tax profits to £41.9 million for the first half of this year.

Before accounting for anomalies – including a boost of £23 million in the second half of last year due to the acquisition of GMG Regional Media – pre-tax profits were down 66 per cent.

Total revenue for the group fell 3 per cent to £371 million, down from a 6 per cent drop during the first quarter thanks largely to a boost in the wake of the closure of the News of the World.

Following the closure of the News International tabloid on 10 July, circulations of Trinity Mirror's national titles were up 4 per cent. Group circulations – including Trinity Mirror's regional titles – were up 2 per cent.

Over the first half of the year however, advertising revenues on the company's national titles fell 11 per cent and circulation revenues 5.4 per cent.

Digital revenue for the group increased 6.3 per cent to £19.1 million following the acquisition of GMG and recruitment, cars and homes site fish4, which Trinity Mirror took control of in October last year. Excluding acquisitions it increased by 0.8 per cent to £17.6 million.

Average monthly unique users across the groups regional sites are up, with a 33 per cent year-on-year increase to 13 million in June.

Sly Bailey, chief executive of Trinity Mirror, said: "While the economic environment remains difficult we have undertaken a series of actions to limit the impact on operating profit. The roll out of our technology led operating model continues to deliver efficiencies and today we have announced an increase in our 2011 cost savings target to £25 million.

"At the same time we're investing across the group to diversify and grow revenues. Following changes to the national Sunday newspaper market we are highly encouraged by the considerable circulation volume growth seen by our national Sunday titles.

"Our focus on maximising profits in the short term through tight management of costs while investing for growth creates a good backdrop for shareholder value creation over time."

The company also confirmed that it would increase its savings target for the coming year from £15 million to £25 million, as reported last month.

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