15th Dec 2005 07:01
Trinity Mirror PLC15 December 2005 15th December 2005 Trinity Mirror plc Pre Close Trading Update Trinity Mirror plc is today issuing its regular trading update, ahead of itsclose period. The Company will announce its preliminary results for the 52 weeksending 1 January 2006 on 2 March 2006. Advertising revenues In a difficult advertising environment, Group advertising revenues for the 5months to November 2005 excluding acquisitions fell by 7.9% year-on-year. Groupadvertising revenues for the 11 months to November 2005 fell by 3.8%. Advertising revenues for the Regionals division fell by 4.9% year-on-year forthe five months to November 2005. Recruitment advertising was particularly weakgiven the slowing economy and increasing unemployment, with revenues falling by20.5% year-on-year. However, we saw continued growth in property advertisingwhich was up by 6.4% year-on-year. The period also benefited from strongadvertising revenues resulting from the changes in the alcohol licensing laws. Advertising revenues for the Nationals division fell by 14.4% for the fivemonths to November 2005, with a 15.9% decline in the UK National titles and a10.1% decline in the Scottish National titles. Advertising revenues for the Sports division and the Magazines and Exhibitionsdivision fell by 11.2% and 9.1% respectively for the 5 months to November 2005,reflecting slowing consumer spending. Circulation revenues Group circulation revenue increased by 1.4% during the period under review.Group circulation revenues for the 11 months to November 2005 increased by 2.4%.Circulation revenue growth for the five months to November 2005 of 3.1% for theRegional newspaper titles, 4.1% for Scottish Nationals and 4.9% for the Sportstitles has been partially offset by declines of 0.3% for the UK Nationals and4.8% for Magazines. The circulation revenue performance reflects the benefit ofincreased cover prices. Acquisitions The acquisitions completed during 2005 are performing in line with ourexpectations. Outlook Although the Group has experienced a difficult advertising trading environmentover the second half, the benefit of management initiatives to mitigate theimpact on profits gives the Board confidence in an outturn for the year in linewith expectations. The downward trend in the advertising market continues and there will beinflationary and other cost pressures in 2006, including higher newsprintprices. Management is running the business on the assumption that theadvertising environment will continue to be challenging and is therefore takingaction now on the cost base which will deliver further cost savings of up to £15million in 2006. These savings are expected to partially mitigate the uncertainrevenue outlook and cost increases anticipated in 2006. Exceptional costs ofapproximately £12 million associated with these savings will be reported in2005. Further enquiries: Trinity Mirror plcVijay Vaghela 020 7293 3000Group Finance DirectorNick FullagarDirector of Corporate Communications FinsburyJames Leviton 020 7251 3801 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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