Trinity Mirror is to increase its planned structural cost savings from £10 million to £20 million, the group has announced, as revenue is forecast to fall 11% year on year.
The company’s latest trading update for the 26 weeks to 28 June 2015 expects publishing revenue to fall by 9%, alongside an 11% print decline.
Publishing print revenue trends have been adversely impacted by increasingly challenging print advertising markets, with print advertising revenue expected to fall by almost a fifth.
Circulation revenue is expected to fall by 6%, with trends improving from May following a cover price increase for the Daily Mirror, Monday to Friday edition.
Digital, however, is expected to continue to see strong growth, up 26%, with average monthly unique users and page views growing by over 50% during the period. The growth in audience also helped drive an increase in digital display revenue of over 40%.
“The revenue environment has remained challenging throughout the first half, continuing the trends experienced at the end of 2014,” Trinity said.
“Whilst monthly revenue trends are expected to be impacted by further volatility for the rest of the year, at this stage, the Board continues to expect profits for the year to be in line with expectations.”
Trinity Mirror is currently being sued by 70 celebrities and politicians over phone hacking allegations.
The group was ordered to pay £1.2 million in damages to eight phone hacking victims last month, with compensation costs now estimated to rise from £12 million to £28 million.
However, Trinity’s subsidiary, MGN Limited, is seeking permission to appeal the judgement handed down by Mr Justice Mann on 21 May 2015.
“As we have previously indicated, there remains uncertainty as to how matters will progress,” the group said on Friday. “Further updates will be made if there are any significant developments.”
