Trinity Mirror Ad Revenues Marginally Up, Conditions Uncertain
Already uncertain conditions have been accentuated by the war in Iraq according to the UK’s largest newspaper publisher, Trinity Mirror. It says that group advertising revenues for the first four months of 2003 are marginally ahead of the same period last year.
Ad conditions at the regionals in London and the south-east continue to be challenging, particularly in recruitment advertising, with year on year declines of 5.4% in the first four months. Excluding London and the south-east, the regional division showed ad revenue growth of 0.5%.
Circulation revenues dropped by 6.5% in the period. Trinity says that this reflects the impact of price cutting for the Daily Mirror in the first quarter, in addition to a generally poorer sales performance. The cost of the price-cuts in the period was £5.7 million – £1.3 million higher than the policy cost for the same period in 2002 (see Bailey Moves To Stop Mirror-Sun Price War As Costs Hit ).
New chief executive, Sly Bailey, is currently heading up a review of Trinity Mirror’s business; the results of this review are to be reported with the company’s interim results on 31 July.
Outlook Chairman, Sir Victor Blank, says that the uncertain external trading environment will continue for the remainder of the year, but, subject to there being no further adverse changes, he expects a satisfactory outcome for the year.
Shares in Trinity Mirror were down by 2.6% at 418.5p by 11.30 this morning.
