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Trinity Mirror Releases Pre-Results Trading Statement

Trinity Mirror Releases Pre-Results Trading Statement

Trinity Mirror has issued a trading update ahead of the full year results it will release on 15 March. The update, which refers to the 26 weeks to 31 December 2000, reports revenues in line with expectations, which is to say the stronger performance was in the first half of the year, rather than the second. On a positive note, Trinity reports that the trading environment improved during the last two months of the year, with the effect continuing into January this year.

The group blames a “highly competitive” tabloid newspaper market, along with a strong performance in the second half of 1999 and the first half of 2000, for growth of just 0.6% in total advertising revenues for its five national newspapers. Circulation revenues dropped during the period by 1.1% and the Mirror, Sunday Mirror and Sunday People all experienced losses in circulation market share during the second half of 2000. Scottish titles the Daily Record and Sunday Mail managed a slight increased in their share of the tabloid market in Scotland.

There has been better news from the sports newspapers, including the Racing Post. A strong performance saw year on year growth for the second half of the year of 39% in advertising revenue and 19% in circulation revenue. The same period saw year on year growth of 4.2% in like for like growth of advertising revenues from regional newspapers, despite a circulation decline. Recruitment advertising led the way in this, increasing by 15.8% during the 26 week period.

The group’s regional portfolio was boosted during the period by its acquisition of Southnews. With integration completed and management in place, it is performing to expectations and is expected to deliver the target of £4m of cost savings by December this year. More expansion has taken place with Metro, with a Scottish edition being added to the existing network of Birmingham and Newcastle. Trinity’s digital portfolio has also grown, with the December launch of entertainment site icShowbiz. ic24, the group’s ISP, had attracted more than 790,000 subscribers by December last year.

It is predicted that revenues from digital media, Southnews and Metro will lead to an increase in the Group’s rate of revenue growth, which it is hoped will offset the significant factor of the rising newsprint prizes expected during this year. Trinity’s board has said it is “confident of a satisfactory performance in 2001.” The market seemed less convinced, as by 11.30am today shares had dropped in value by 13p to £4.42½.

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