The Mirror Group, which has been in the spotlight recently due to a number of takeover bids for the group (see Newsline) released its financial results for 1998 today. The group reported an annual turnover of £697 million (1997: £559 million), and pre tax profit increased by 9% from £92 million to £100 million. Underlying earnings per share maintained at 15.6p on increased share capital.
The group’s statement said that 1998 was a year of significant achievement. The group acquired Midland Independent Newspapers, and saw its flagship title, The Mirror, increase its circulation despite a general decline across the market (Subscribers see round-up in Press features list).
MirrorTel, the group’s television interests, continues to suffer losses. Although subscription increased by 21%, Live TV, the Mirror Group’s television operation, continues to lose money. Speculation has appeared in the press that the group was considering selling off its television assets, a move which Trinity, who are bidding for the group, are expected to block.
Trinity, who submitted a bid for £1 billion for the Mirror Group, which was swiftly rejected (see Newsline), announced today that it has made a formal application to the Secretary of State to have its bid referred to the Monopolies and Mergers Commission(MMC).
There are also unconfirmed reports circulating today that the Mirror Group is planning to shelve its plan to relaunch The Sporting Life (see Newsline). Details will be available on Newsline when available.
John Allwood replaced David Montgomery as chief executive of The Mirror Group, following the ousting of Montgomery in January (see Newsline). The group recorded its appreciation of Montgomery’s contribution in its statement.
Allwood commented on the group’s results: “These results demonstrate the underlying strength of Mirror’s businesses. We have been able to increase profits whilst investing in the highly successful rejuvenation of The Mirror” (see Newsline).
Mirror Group: 0171 293 3000
