17th Dec 2015 11:57
LONDON (Alliance News) - Trinity Mirror PLC said Thursday it is increasing its provision in relation to civil phone hacking claims by GBP13 million, after the UK Court of Appeal upheld a ruling over damages related to the claims in May.
In a separate trading update, the company also announced that it now expects its performance for its full year, excluding one-off costs, amortisation and other charges, to be marginally ahead of expectations.
Trinity Completed its acquisition of local newspaper group Local World Holdings Ltd in November, and said it had traded in line with expectations since that time.
Whilst the trading environment "remains volatile", the company said, revenue for its fourth quarter to December 27 is expected to be in line with its third quarter, down 9% year on year. Publishing revenue is expected to fall by 7%, whilst print is expected to decline by 8%, offset by growth in digital of 12%.
Trinity said it is making good progress against its strategic initiatives, and will deliver its targeted cost savings of GBP20 million for the year.
In regards to the phone hacking ruling, Trinity Mirror reiterated its belief that the basis used to calculate the damages was incorrect, and plans to appeal the matter to the Supreme Court. Earlier this year the company was ordered to pay GBP1.2 million to eight phone-hacking victims.
The ruling follows news last Friday that the criminal investigation into its subsidiary MGN Ltd over the phone hacking scandal was being dropped after three years.
Shares in Trinity Mirror were down 0.5% at 163.00 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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