Pre-tax profit at regional and national newspaper publisher, Trinity Mirror, was down by 9.7% to £80.9m for the six months to 1 July 2001, but nevertheless ahead of expectations.
Like all newspaper groups, Trinity has been impacted by a 12% rise in newsprint costs this year, along with the broader downturn in advertising revenues. It is reported this morning that the company is to shed 800 staff over the next three years in order to meet its cost savings targets.
Ad growth came in at 4.7%, driven by strong regional and classifieds performances. The three national titles – the Mirror, Sunday Mirror and Sunday People – showed a 2.3% decline in ad revenue for the half. A 7.5% increase in the first quarter was followed by a decline of 2.9% in the second.
Circulation revenue at the nationals dropped by 3.4% to £109.2m. Despite this circulation of the Mirror has been steadily improving, particularly since the move of M magazine to Saturdays. The Mirror’s circulation improved year on year from a decline of 5.3% to 1.6%.
Revenue at the Scottish national newspaper operations fell by 1.5% leading to a fall of 6.4% in operating profit to £11.7m.
The Group’s regional newspapers business, including the three Metro titles, achieved a 10.9% increase in revenue and 0.8% increase in operating profit.
A strategic review of all of Trinity Mirror’s operations has been set in motion by its new CEO of newspapers, John Sinyor. This is expected to yield cost savings of £9 million this year, £25m in 2002 and £35m by 2003.
Trinity Mirror titles are performing well according to the latest ABC results. The Mirror enjoyed a circulation of 2,193,791 and the Sunday Mirror‘s circulation was 1,849,364, less than 0.5m behind the Mail On Sunday.
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