Trinity Mirror has released a disappointing trading update for the 26 weeks leading up to July 2 2006, with group advertising revenues for the period expected to fall by 10.6% year-on-year, excluding acquisitions completed in 2005 and 2006. Including acquisitions its advertising revenues for the period are expected to fall by 8.4%.
Like for like advertising revenues for the regionals division are expected to fall by 9.7% for the period to July 2. Out of all the advertising categories, only property advertising is expected to increase, by 1.9% for the period, with display (-6.7%), recruitment (-21%), motors (-12.9%) and other classified categories (-3%) all recording declines.
The nationals division advertising revenues are expected to decline by 12.7%, reflecting a 12.1% fall in the UK national titles and a 10.5% decline for the Scottish national titles.
Magazines and exhibitions advertising revenues are expected to fall by 12.3% and sports division advertising revenues are expected to fall by 16% year-on-year.
Group circulation revenues for the period to July 2 are expected to fall by 1% year-on-year, which Trinity Mirror says reflects the impact of reduced volumes and vouchering activity on the Scottish nationals, partially offset by cover price increases.
The trading statement also says that expected circulation revenue declines of 1.4% for the nationals, 3.1% for sports and 1.1% for magazines and exhibitions have been partially offset by an expected increase of 1.4% for the regionals division.
Commenting on the expected decline, Trinity Mirror said: “The advertising environment remains weak and management continue to run the business on the assumption that this will continue for the remainder of the year.”
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