Trinity Mirror Remains Circumspect On Ad Prospects
Trinity Mirror, the UK’s largest newspaper publisher, has noted signs of improvement in advertising conditions but stops short of forecasting an imminent recovery, following the release of first half results today.
National press Trinity Mirror claims to have ploughed £7.6 million into new strategies for its UK and Scottish national titles. On first inspection, this investment would seem to have had minimal effect. Circulation revenues for the national titles were down 3% to £134.6 million and there was an 8.4% decline in advertising revenues.
However, the entire sector has suffered during the advertising recession and although Trinity’s UK national titles experienced a decline of 15.3% in revenues for the first four months of the year, this was partially offset by a decline of only 1.1% in May and growth of 1.5% in June.
Regional press Advertising revenues at the group’s regional titles were more stable with an overall decline of 2.2% to £202.9 million. This was largely attributed to the malaise in recruitment advertising and falling revenues in London and the South East. Regional circulation revenue was almost unchanged at £41.2 million as cover price increases offset volume declines.
Outlook The interim results are in line with full year forecasts although stronger than expected regional advertising is set to compensate for softer national revenues.
Despite some seeds of encouragement, Trinity Mirror does not foresee an advertising revival before the end of 2002. “It is hard to discern any consistent sign of a pick-up. We are not anticipating any upturn for this year,” said the group’s chief executive, Philip Graf.
Nonetheless, strategies such as the rebranding and editorial repositioning of the Daily Mirror have long term aims and analysts within and outside the organisation will be reluctant to make snap predictions based on today’s figures.
Shares in Trinity Mirror were up 17p at 384½p by mid-afternoon today.
