Profits up but revenues down for newspaper group Trinity Mirror
NEWSPAPER group Trinity Mirror, owner of The Birmingham Post & Mail, has seen a £54.2m fall in full-year revenue although profits for the group increased after tight control on costs.
In an attempt to make the operation more efficient, new chief executive Simon Fox has instigated a radical restructure moving the group to a single editorial operation rather than the former split between the national and regional titles.
In its preliminary results announcement for 2012 the group said revenues during the year fell to £706.5m with an estimated £12m of the decline attributable to a reduction in circulation revenues following the launch of a new national Sunday tabloid.
It said while advertising and circulation revenues declined by 10.4% and 7.9% respectively, it had been encouraged that printing revenues grew by 1.7% and other revenues grew by 8.9%. The circulation performance of the Daily Mirror was a particular highlight of the year. In a national tabloid newspaper market that was down by 8.3% during 2012, the Daily Mirror’s circulation was down by 6.6%. Nevertheless, it outperformed the market for 10 out of the 12 months of the year.
Digital revenues across the group grew by £3.2m to £40.8m with incremental digital revenues of £3.8m from Communicator Corp, acquired in December 2011. However, growth in digital display advertising revenues and digital other revenues were offset by continued cyclical pressure on digital classified advertising revenues.
Mr Fox said: “Our underlying performance in digital revenue has been far from satisfactory and our increased focus on this area will be a high priority for 2013 and beyond.”
Adjusted operating profit increased by £2.6m to £107.1m despite revenues falling. It said it had seen good growth in its Publishing divisions operating profit which grew by £5.3m to £125.1m. This was partially offset by higher operating losses in the Specialist Digital division of £2.7m. This includes losses, up £2.9m to £3.7m, from happli which was closed in October 2012.
The group’s tight cost control operation saw it £10m ahead of the £15m target it set at the beginning of the year.
Mr Fox added: “I firmly believe there is significant unrealised potential in the business. To deliver these opportunities, the group required a flatter and more efficient management structure that releases the full potential of our journalists across the country and harnesses our audience reach.
“We have therefore changed the management and organisational structure with the creation of a single Publishing division which combines the former Nationals and Regionals publishing operations. The new division ensures that editorial, advertising and all support functions operate as efficiently as possible across all of the Group’s print and digital operations.”
