Trinity Mirror pledges action to mitigate Brexit effect

NEWSPAPER group Trinity Mirror has warned it will “take the necessary mitigating actions” to support profits, citing increased uncertainty arising from the outcome of the UK’s referendum on EU membership.

Shares in media companies have been hit hard following the referendum. Trinity Mirror’s share price has slumped by 40% over the past six months – 20% of that has been after the result of the EU referendum was announced.

The group, owner of regional titles such as the Liverpool Echo and Manchester Evening News, said that group revenue had fallen by 8% on a like-for-like basis in a trading update for the half year to July 3.

The publisher is pinning much of its hopes for the future on its digital arm, which showed 14% growth over the period.

Traditional newspapers continued to show declines – with the print market down by 10%.

Publishing print advertising and circulation revenue fell by 17% and 5% respectively over the period.

Despite this, strong cash generation over the period had enabled a further fall in net debt.

The focus for the second half of the year would be on investing in digital growth, it added.

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