Trinity Mirror Results Beat Expectations, Mirror Relaunch Announced

Pre-tax profit at the company rose by 0.9% to £155.5 million, whilst turnover increased by 4.8% to £1.1 billion for the year ended 30 December 2001. This is a sturdy performance in what has been a difficult trading period and beats expectations, which were mainly of a profit warning. Shares in the group were up by 18p earlier in the morning’s trading, but had fallen slightly to be up 8p at 420½p by 9.45am.

Regional press Trinity Mirror says that it has successfully implemented a regional newspaper strategy, which has realised £1.5 million in revenue and £5.4 million of cost improvements during 2001.

Trinity is the largest regional newspaper publisher in the UK.

Mirror relaunch The group plans to relaunch its flagship national paper, the Mirror, starting later this year. More generally, it is ‘revitalising’ its national newspapers in order to increase loyalty amongst existing readers and to attract new, younger readers. A similar approach is being adopted with the company’s Scottish newspapers.

Investment stepped up Trinity says it has stepped up its investment programme: approximately £25.0 million is to be invested in 2002 (above level of investment in 2001) in marketing, editorial and products (including strategy for the Mirror titles) and £90.0 million in replacing four regional press facilities during 2001 to 2004.

Renegotiated newsprint costs are set to offer the company £17.5 million cost savings in 2002.

Outlook and advertising “In the first two months of 2002, the advertising market has remained tough. The directors believe it is prudent to plan on this remaining so throughout most of the year. However, the strategic initiatives and successful cost reduction programmes give the Board confidence in the underlying performance this year,” says chairman Sir Victor Blank.

Trinity said that, despite the slowdown towards the end of the year, particularly in the South and Midlands, the division still achieved recruitment advertising revenue growth on a like for like basis of 10.3%, with some businesses achieving growth of more than 20.0%.

Property classified advertising was reasonably strong throughout the year, achieving growth of 4.4%, with certain regions hitting 10.0% growth and over.

Growth of 2.6% was achieved in display advertising, despite adverse national display markets being impacted throughout the year by limited visibility and difficult retail advertising.