Trinity printing business in the doldrums
TRINITY Mirror, the publisher of the Manchester Evening News and The Liverpool Echo, is continuing to battle the declining circulation of titles.
Group revenue in the third quarter of 2016 to September 30 is expected to fall 9% on a like for like basis, compared to an 8% drop in the first half of the year.
Publishing revenue is expected to fall by 10% with print declining by 12% and digital growing by 11%.
Publishing print advertising and circulation revenue fell by 21% and 6% respectively. Classified digital revenues, which are substantially jointly sold with print, remained under pressure but the company delivered strong growth in digital display and transactional revenue of 24% as digital audiences continued to grow.
In its trading update, Trinity said it had acquired acquired 1.6 million shares for £1.5m under the £10 million share repurchase programme announced in August.
The company completed the sale of Rippleffect, a digital marketing services agency for £2m.
The business generated revenue of £5.7mi in 2015 and £3.4m prior to its disposal in 2016 and will have no impact on profits for the year.
Trinity also handed back four of the eight regional Metro franchises it operates to the Daily Mail and General Trust with effect from January 1.
These titles are expected to generate revenue of circa £10m in 2016 with a minimal contribution to profits.
“We continue to make good progress against our strategic initiatives and the business continues to deliver strong cash flows supported by structural cost savings of some £20m for the year which is £5m ahead of our initial target,” the company said.
