26th Jun 2015 06:46
LONDON (Alliance News) - Trinity Mirror PLC Friday said it is expanding its cost reduction programme due to a "more challenging revenue environment", as it expects revenue in its first half to fall, although it still anticipates meeting profit expectations for its full year.
For the 26 weeks to June 28, Trinity expects revenue to fall 11% compared to the previous year, as more challenging print advertising markets will lead to a 19% fall in print advertising revenue. Circulation revenue is expected to fall by 6%, although revenue trends will show improvement from May after a cover price increase for the Daily Mirror's Monday to Friday edition, the company said.
Excluding title closures and the newsprint supply to the 'Independent' and 'i' titles, which ceased at the end of 2014, revenue is expected to fall by 9%. Publishing revenue is seen down 9%, within which print will be down 11%, partly offset by a 26% rise in digital revenue.
The company said its digital audience continued to build during the period, with average monthly unique users and page views growing by over 50%, driving a rise in digital display revenue of over 40%.
As a result of the "more challenging revenue environment", Trinity Mirror will expand its current cost reduction programme to now target cost savings of GBP20 million, doubled from the GBP10 million it had been targeting in March. This will lead to an increase in restructuring costs by around GBP5 million to GBP15 million.
Trinity Mirror reiterated that its subsidiary MGN Ltd is seeking permission to appeal the ruling on damages in relation to phone hacking victims that was handed down at the end of May, but continued to warn that there "remains uncertainty as to how matters will progress".
The company was ordered to pay GBP1.2 million to eight phone-hacking victims, but is looking to appeal the ruling as it believes the basis used for calculating the damages is incorrect, and the amounts awarded by the judge are excessive and disproportionate.
As a result of the judgement, Trinity Mirror in May increased its provision for the ongoing phone hacking trials by GBP16 million.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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