Trinity Sees No Return To Earlier Ad Levels

Growth at newspaper publisher Trinity Mirror was mainly strong in the first half, although advertising levels tailed off during second quarter, according to a trading statement released this morning.

The company said that “the 26 week period has been characterised by a relatively strong advertising performance in the first 13 weeks which has been offset by a difficult and volatile advertising market for the remainder of the period.”

The slowing growth indicated in the company’s AGM statement in May has since accelerated. Advertising revenue growth across the regional newspapers for the 26 week period is estimated to be 4.5%. Again, the strong first quarter was offset by a weaker second quarter, with an estimated 2% increase in the period April to June. This small growth was principally driven by recruitment advertising, which is estimated to have risen by 17% in the period.

At the national titles, ad revenue grew by nearly 2%; however, an estimated decline of 4% has been seen in the period April to June, with June down by as much as 10%. The Scottish nationals business has suffered from very difficult trading conditions, with an estimated decline in advertising revenue of 3.5% for the 26 weeks (6.5% from April to June), says the statement.

Trinity warns that current conditions remain volatile, with very limited visibility. There is no sign of a return to the level of ad growth seen at the beginning of the year and cost reduction measures are being put in place throughout the group.

Shares in Trinity Mirror were down 3p at 407p by late morning. .

Trinity Mirror: 020 7293 3000

Subscribers to MediaTel Insight can access more national and international media analysis, forecasts and news. For subscription details please visit the site.