Daily Mirror Coverprice To Rise As Group Profits Increase
Trinity Mirror has announced plans to raise the coverprice of its flagship Daily Mirror by 3p to 35p and has revealed that its national newspapers are beginning to see an improvement in advertising revenue.
The price of the Daily Mirror will increase from next Monday in an audacious move that will make the paper 5p more expensive than News International’s Sun, which may be encouraged to follow suit with a coverprice rise of its own.
The increase is the first for the Daily Mirror since the end of the bitter tabloid price war with the Sun, which cost Trinity Mirror £21.8 million in 2002 and drove down circulation revenues by 7.6% (see Bailey Moves To Stop Mirror-Sun Price War As Costs Hit £22m).
The move coincides with the launch of new female targeted celebrity magazine called 3am, which will be based on the Daily Mirror column of the same name. The magazine will focus on celebrity interviews and will include fashion, beauty and health tips from the stars.
Trinity Mirror’s national newspapers have been under pressure recently and the company announced today that advertising revenues dropped by 2.1% in 2003. The company claims there have been signs of improvement in the first two months of this year, but says its is too early to determine longer term trends.
Pre-tax profits after exceptional items rose by 13.3% to £172.5 million during 2003 and the company has achieved total cost savings of £5 million over the last twelve months following a wide-ranging review.
Trinity Mirror, chief executive, Sly Bailey, said: “The changes made during this year have delivered a performance ahead of expectations. 2003 represents the best year on year profit improvement for the group since the merger in 1999 and sets the benchmark for further value creating performance for enhancing shareholder value.”
She added: “While there is still much work to be done, we are now significantly progressed on the first phase of our three phase transformation programme ‘Stabilise Revitalise Grow’ and the team is focused on continuing the pace of change which has been apparent in 2003.”
Trinity Mirror reduced its net debt by £61 million last year to just over £6.5 million and the group received a £46.3 million boost from the disposal of its range of regional newspaper titles in Ireland (see Trinity Mirror Sells Irish Titles To 3i For £46 Million).
The company’s regional business is performing well with advertising revenue increased by 2.4% during 2004 to £404 million. Pperating profit rose from £112.4 million to £123.9 million last year. A more aggressive approach to increasing cover prices for regional titles was introduced in the second half of this year and this has delivered improved circulation revenues.
Trinity Mirror: 020 7293 3000 www.trinitymirror.com
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