Post & Mail publisher predicts higher end performance although revenue still in decline

BIRMINGHAM Post and Mail publisher Trinity Mirror has said it anticipates full year performance will be at the higher end of market expectations despite continued falls in revenue.

In an interim management statement covering the 17 weeks to October 27, 2013, the company said revenue trends, both in print and digital, had continued to decline – although less so than in the first half.

Third quarter revenues were down 5% and October down 3%, compared to declines of 6% in Q2 and 11% in Q1.

Print advertising revenues declined by 11% during the period with display down 13% and classified categories down 8%. During October, print advertising revenues declined by 6%.

Digital advertising revenues declined by 9% during the period with display advertising up 27% and digital classified advertising down 23%.

More encouraging was the digital performance where its online audience grew with average monthly unique users up 68% year on year to 45 million and page views up 65% year on year to 240 million. These apply across the group’s portfolio, which includes several national titles.

Digital display advertising revenue was said to be growing by 27% year on year.

Continued strong cash generation enabled the group to repay £54.5m of maturing debt in October from cash flow with net debt falling by £18m to £102m in the period.

Simon Fox, Chief Executive, Trinity Mirror, said: “Our transformation programme continues to make good progress and we are beginning to see tangible signs that our strategy is delivering with improving revenue trends, strong growth in digital audience and continued tight management of the cost base, contributing to robust cash flows with falling leverage.
 
“Although I expect continued volatility in revenues, the progress we are making provides the board and I with confidence that our performance for the year will be at the higher end of market expectations.”