Trinity Mirror Sells Belfast Telegraph To Independent
Trinity Mirror has agreed to sell its Belfast Telegraph arm to Independent News & Media for £300 million and announced plans to invest up to £150 million in internet strategy. The news emerged as the group reported its first financial results since its merger last year.
Disposal of Belfast Telegraph Newspapers, which includes the Belfast Telegraph and Sunday Life titles, was a condition of the merger between Trinity and Mirror last year (see Trinity And Mirror Seal Merger In £2bn Deal). Up to five companies made a bid for the titles (see Final Three Suitors Line Up For Belfast Telegraph) which will be sold to Tony O’Reilly’s Independent News and Media group after being referred to the Competition Commission.
Announcing the group’s internet strategy for the next three years, Trinity Mirror’s chief executive Philip Graf said: “Our objective is to create the UK’s leading “local portal”, seamlessly integrating superior and local content, and to turn the traffic this content generates into substantial revenues. We will leverage all of our assets in newspapers and new media to become a critical component of local and common interest communities.”
The group’s existing new media assets include the ic24 portal and ISP, which links to Trinity Mirror’s national and regional titles, including the Mirror and Sunday People. Within the next twelve months the group plans to roll out a further 16 regional ic portals in major regions. Its Racing Post website will be enhanced with e-commerce revenue from online betting.
A pro forma analysis of the newly-merged group reveals pre-tax profit of £168 million, before exceptional items, for the year ending 2 January 2000. This sees an increase of 14% compared to the same period the previous year. Turnover increased by 4% to £1053 million.
Trinity Mirror is now the largest regional press publisher in the UK with sales almost double the size of its nearest competitor (see Trinity Mirror Heads Regional Press League). Its regional division showed growth during the period despite disappointing performances from its Midland and Liverpool operations. The last few months has seen the group join the burgeoning free morning newspaper market with Metro titles in Birmingham and Newcastle (see Feature: Metros May Boost Regional Morning Market).
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