Local World deal sees Trinity Mirror profits soar

Trinity Mirror has announced a 42.3% surge in pre-tax profits following the acquisition of regional publisher Local World in October last year.

The half year results ending 3 July show that pre-tax profits stood at £66.9m, up from £47m last year.

Digital revenue grew by 14.4% to £39.7m with digital display and transactional revenue growing by 27.8% while digital classified revenue fell by 9.0%.
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However, on a like for like basis, revenue fell by 7.8% with publishing print revenue falling by 10.3%.

“I am pleased we delivered another strong performance despite the challenging print environment,” said chief executive Simon Fox.

“We are already seeing the benefits from our acquisition of Local World last year and continue to tightly manage the cost base across the Group. Our strategic focus remains to grow digital audience and revenue whilst protecting print revenue and profit.

“We are confident that our strategy and our strong balance sheet position will enable continued progress despite increased uncertainty around the economic environment.”

The continued fall-out from the phone hacking scandal means Trinity has paid out £5.3m during the period as it settles legal claims.

The group set aside £41m to resolve civil lawsuits, and has £31m remaining.

Trinity said its board remains “confident” that the costs are manageable and do not undermine the delivery of the Group’s strategy.

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