Post & Mail publisher sees significant H1 revenue decline
NEWSPAPER publisher Trinity Mirror – which owns the Birmingham Post & Mail and the Coventry Telegraph – continued to be weighed down by declining print revenues during the first half.
The group said its H1 performance reflected a more challenging print revenue environment. But despite this, continued progress was being made on strategic initiatives.
In its interims announcement, the group revealed revenue fell by 11% with Publishing revenue falling by 9.6% due to Publishing being down 11.6%. However, the group continues to be boosted by its digital operation, which has shown growth of 26.8%.
On an underlying basis, group revenue fell by 8.7% with Publishing revenue declining by 8.8%, Publishing print declining by 10.9% and Publishing digital growing 26.8%.
Adjusted pre-tax profit was down 2.5% to £47m with adjusted earnings per share down 1.3% to 15.3p.
The group, which announced further cuts to its Post & Mail operation earlier in the summer – including the loss of 25 journalists, said it had experienced continued pressure in national print advertising markets with a slowdown in retail spend, in particular supermarkets, but also reduced spend in telecoms, motors and entertainment categories.
The benefit of structural cost savings of £7m, the cessation of newsprint supply to the Independent and i of £5.8m together with cost mitigation actions and lower newsprint prices have contributed to operating costs falling by £32.9m after increased investment in digital of £3m. Excluding the change in newsprint supply arrangements to the Independent and i operating costs fell by £27.1m.
Simon Fox, chief executive, Trinity Mirror, said: “The print advertising environment has been more challenging than anticipated in the first half. As a result, whilst continuing to invest in people and technology to drive the ongoing growth in digital audience and revenue, we have taken further action to address our print cost base.
“The strong cash generative nature of the business has enabled us to continue to strengthen our balance sheet, to the extent that the group had a net cash position for the first time in its history at the end of the half year. At the same time we continue to make the agreed pension contributions whilst paying an interim dividend of 2p per share.
“I remain confident that our strategy will deliver sustainable growth in revenue and profit over the medium term despite the difficult print advertising market conditions. The actions we are taking in support of both our print and digital products provide the board with confidence that profits for 2015 will be in line with expectations.”
