Profits Up At Trinity Mirror As ic24 Buyer Is Sought

Trinity Mirror has this morning announced better than expected pre-tax profit growth of 12.2% to £196 million, before internet investments are taken into account. The company has also confirmed that it is looking to sell its internet service provider ic24.

Revenues from the internet reached a disappointing £2.5 million, whilst internet losses for the year came in at £42.3 million. Trinity is now looking to sell the ic24 ISP, but is intending to retain its regional portal services. ic24 has 800,000 subscribers, of which around 224,000 are active users.

Trinity Mirror is the UK’s largest regional newspaper publisher and therefore has a heavy reliance on classified advertising. During 2000 classified revenue was strong, growing by 5.2% year on year. This helped Trinity’s regional papers grow revenue by 3.7% to £424 million. In October Trinity acquired regional newspaper group Southnews for £248 million. This has “strengthened the portfolio and improved geographic balance,” the company said.

Revenues at the national papers grew by 2.4% to £523 million. The UK national titles – the Mirror, Sunday Mirror and Sunday People – achieved growth in revenues of 2.9% to £414.7 million and advertising revenue was 2.7% ahead at £156.4 million. Revenues at the Scottish nationals – the Daily Record and Sunday Mail – remained fairly flat.

Chairman Sir Victor Blank gave a positive outlook in the company’s results statement this morning: “Newspapers have proved to be far more robust than many other communication platforms. The first full year for Trinity Mirror has delivered a strong performance, against a backdrop of considerable management change and action. We start the year in good order and good heart. Our plans for the regional newspapers are coming together very well; our national titles are performing encouragingly; and our refocused digital media strategy is now settled. I have confidence in the ability of our creative and committed teams throughout the Group to drive growth and success.”

At 11:30 this morning shares in Trinity Mirror were up 12½p at 471p.

Trinity Mirror: 020 7293 3000