Ad trends improve for cost-cutting Trinity

THE full extent of cost-cutting at Trinity Mirror was revealed by the group today as it posted annual figures.

In the face of falling circulation, higher print costs and plunging advertising revenue the group, which publishes the Daily Mirror and a string of regional titles including the Liverpool Echo, cut 1,700 jobs – 20% of staff – and closed or sold 30 newspapers.

It also imposed a pay freeze, shut 15 offices and closed a printing plant.

The measures helped Trinty save £67.9m and it hopes to add a further £20m to the figure this year.

Chief executive Sly Bailey said the group will maintain a focus on costs while benefiting from a slowdown in the decline of advertising revenue.

At its regional titles ad revenue fell 3% in January and 8% last month. At the national newspapers revenue grew by 2% at the start of the year and was flat last month.

During the 53 weeks to January 3 overall revenue dropped 12% to £763.3m and the group recorded a pre-tax profit of £42m, up from a loss of £73.5m last time.

Trinity also gave an adjusted profit figure of £72.7m, down from £124.2m, after stripping out non-recurring items and other exceptional costs.

Last month Trinity announced its acquisition of Manchester Evening News owner GMG Regional Media for £7.4m in cash and the cancellation of a £37.4m printing contract.

Today it said the deal, which is due to complete at the end of the month, will extend its reach across print and online. “It is a further step towards our strategic goal of creating a local multi-media business of scale,” said Trinity.

Revenue at its regional newspapers fell £23.5m to £302.9m and operating profits nearly halved to £35.9m. It said it was continuing to invest in regional websites which now account for 10% of revenue in the division.

Ms Bailey said: “Ongoing tight management of the cost base enabled costs to fall by £67.9m and was crucial in supporting our profits. During 2010, we will maintain a focus on costs whilst reaping the benefits of an improvement in the rate of decline in advertising revenues. Whilst the board remains cautious about the economic outlook, it anticipates a satisfactory performance for 2010.”