10th Nov 2014 08:26
LONDON (Alliance News) - Trinity Mirror PLC said Monday that it expects its profit for the full year to meet its expectations, and to reinstate dividend payments for the year, as it saw revenues decline 5% during the 17 weeks to October 26.
The company saw overall revenues drop 5% for the period, compared to a 2% decline in its first half. The company said that whilst growth in its digital publishing segment remains strong, rising 44%, this was more than offset by a decline in print publishing revenues of 7%, due to slowing print revenue trends.
Circulation revenue fell 3% as volume declines were partly offset by a rise in cover price. Print advertising revenue fell 12%, faster than the 9% decline it saw in the first half, due to weaker national display advertising spend, particularly from supermarkets.
Trinity Mirror expects to reinstate dividends this year, with a final dividend of 3 pence per share.
The company said that it has settled a number of claims in regards to the 'phone hacking' scandal during the period, and its subsidiary MGN Ltd has admitted liability to a number of individuals over the interception of their voice-mails. It said that these steps "were within those contemplated at the time of its interim results, and thus it has made no changes to its provisions to deal with the claims.
The company said it had continued to see month-on-month volatility in print revenue, particularly in national advertising revenues. It expects this to continue for the remainder of the year.
Trinity Mirror said that due to "phasing", its capital expenditure is expected to be lower than its previous guidance of GBP15 million. Restructuring charges in relation to its cost reduction measures are expected to be marginally higher than its previously guided GBP12 million, it said.
"Despite the recent deterioration in national press advertising trends I remain confident that our strategic initiatives will ultimately deliver sustainable growth in revenues and profits," said Chief Executive Simon Fox in a statement.
Shares in Trinity Mirror are trading down 1.2% at 164.00 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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