13th Mar 2014 09:21
LONDON (Alliance News) - Trinity Mirror PLC said Thursday it swung to a pretax loss in 2013 due to big impairment charges and declines in revenue.
However the newspaper group, which publishes the Daily Mirror among other titles, expressed confidence for progress in 2014 as it sees positive revenue trends, particularly online, and has taken cost-cutting measures.
Trinity posted a pretax loss of GBP160.8 million, swinging from a pretax profit of GBP9.7M in the previous year, after booking GBP225.0 million in impairment charges relating to the cash generating units of its publishing division. Revenue dropped to GBP663.8 million from GBP706.5 million in the previous year.
The newspaper company also posted a GBP700 million non-cash impairment charge in relation to investments in subsidiary companies held by Trinity, which resulted in a negative profit and loss account reserve in its balance sheet of GBP514.8 million, which it said did not affect statutory results.
On an adjusted basis, removing these exceptional costs, the company posted a pretax profit of GBP79.1 million, up from GBP73.7 million in the previous year.
Trinity said that although revenues were under pressure, it had seen a "clear improvement in trends" during the year, as revenue only declined 0.9% in the last two months compared to a 7.1% decline in the first ten months of the year.
In its Publishing division, digital revenues showed growth of 17% in the second half compared to a 10% decline in the first half. In the last two months of the year, digital revenues in this division grew 32% year-on-year.
Average monthly unique users were 41.1 million, and average monthly page views were 221.8 million.
The company said it had made progress against its 'One Trinity Mirror' strategy, which aims to deliver sustainable revenue and profit growth by cutting costs, unifying its organisation structure, protecting and revitalising its brands, accelerating its digital abilities, and investing in new businesses.
Trinity said that its reorganisation of its national and regional brands is largely complete, and its focus now is to "enhance the effectiveness of the structure."
Trinity said it had made GBP12 million in cost savings during the year, GBP2 million ahead of its GBP10 million target that was set at the beginning of the year. Its cost savings target for 2014 is GBP10 million.
"It is clear to me that our strategy for growth, which I outlined in March last year, is gaining momentum. I am particularly pleased with our rapidly growing digital audience and with the benefits we are driving in harnessing the combined strength of our national and regional titles," said Chief Executive Simon Fox in a statement.
Trinity expressed confidence that its 2014 performance would be in line with forecasts. It has started the year in line with expectations, it said, as revenue declines in the first two months were 3%, and it continued to see strong growth in publishing digital revenues.
The company said it continues to expect month-on-month volatility, but anticipates an improvement in trends as it progresses through the year.
It declared no dividend for 2013, unchanged from the previous year.
Shares in Trinity were trading up 2.5% at 223.29 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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