Trinity Mirror reports rise in profits and digital revenue

Digital revenues at Trinity Mirror rose across its national and regional operations in the first half of the year, as the group saw an 11.5 per cent increase in operating profit year-on-year.

The company also reported a rise of more than 20 per cent in pre-tax profit to £35.1 million from £28.9 million last year. The company share price was said to have risen today by 7.31p, an increase of 23.58 per cent.

However, according to the publisher's interim first half-year results, published today, group advertising revenues fell by 10.5 per cent, while circulation revenues were down 0.6 per cent on the same period last year.

This meant group revenues fell overall by £15 million, a decrease of 4 per cent.

But across the group digital revenues rose by £1.7 million, an increase of almost 9 per cent. And the company also reported a rise in pre-tax profit to £35.1 million from £28.9 million last year, with a cut in operating costs of £20 million.

"The performance in the period includes the benefit of email and mobile communications firm Communicator Corp which was acquired in December 2011 and is included in other revenues, which if excluded, saw digital revenue remaining broadly flat year-on-year", the report adds.

Its nationals division, which includes the Daily Mirror, Sunday Mirror and the People, was said to have "performed strongly in the period with operating profit increasing by 11.8 per cent", although the report adds that "revenues have remained under pressure during the period due to the economic climate" and News International's launch of the Sun on Sunday earlier in the year.

"While circulation volumes for our national Sunday titles fell after the launch of the new national Sunday title, we are encouraged that the underlying circulation volumes are ahead of the trend prior to the closure of the News of the World in July last year", with a 0.3 per cent rise in circulation revenues within its national division.

Following the relaunch of the Mirror's website "and our investment in digital resource" digital revenues are said to have risen by 12.5 per cent.

Looking to Trinity Mirror's regional arm the publisher said its titles in "key large northern metropolitan markets" have felt "the brunt of the tough economic conditions and in addition the public sector spending cuts and continuing media fragmentation", which as a result "have impacted both advertising and circulation revenues", falling by 12.1 per cent and 3.9 per cent respectively.

But again digital revenue was up, increasing by 8.4 per cent when taking Communicator Corp into account.

Discussing the outlook for the rest of the year chairman David Grigson added: "Although the trading environment is expected to remain difficult, the board anticipates that through strong operational management and the benefit of a fall in newsprint prices for the second half, we will deliver an outcome for 2012 which will be ahead of current expectations."

Earlier this year it was announced that chief executive Sly Bailey would step down with immediate effect.

In today's financial report Grigson added: "Once we have a new CEO at the helm I am confident that the group can build on these strengths and provide a bright and prosperous future for all its stakeholders."

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