Interim Management Statement

RNS Number : 5307W

Trinity Mirror PLC

10 November 2014

 



Trinity Mirror plc

10 November 2014

INTERIM MANAGEMENT STATEMENT

17 weeks ended 26 October 2014

Trinity Mirror plc is today issuing an Interim Management Statement covering the 17 weeks of trading to 26 October 2014 ('the period') and describing the Group's financial position and performance, updated to the latest practicable date.

Key Highlights

·      While growth in Publishing digital revenue remains strong, print revenue trends have slowed resulting in a 5% decline in Group revenue over the period, compared to a 2% decline in the first half.

·      Publishing digital revenue grew by 44% in the period with growth of 100% in average monthly unique users¹ to over 85 million and growth of 93% in average monthly page views¹ to over 575 million.

·      Strong operating cash flows coupled with the benefit of dividends from the PA Group and Local World totalling £16 million enabling net debt on a contracted basis² to fall by £32 million during the period to £24 million.

·      The Board anticipates the reinstatement of dividends for this year with a final dividend for 2014 of 3 pence in line with previous guidance.

·      Profit for 2014 is expected to be in line with our previous expectations.

Outlook

As previously highlighted, we continue to experience month on month volatility in print revenues, in particular within national advertising revenues where trends have deteriorated relative to the first half. We expect this trend to continue for the remainder of the year. 

Continued momentum on our strategic initiatives coupled with ongoing cost mitigation and an increase in structural costs savings to at least £12 million provides the Board with confidence that profit for 2014 is expected to be in line with our previous expectations.

Commenting on the trading for the period, Simon Fox, Chief Executive, Trinity Mirror plc, said:

"I am pleased with the strategic progress we are making in building the scale and reach of our digital brands. At the end of September our group digital audience exceeded 90 million monthly unique users with continued strong growth in digital revenue. 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."

¹Average monthly unique users and page views for the Publishing Division across web, mobile and apps for July to October 2014 versus July to October 2013 (Omniture)

²Assuming that the private placement loan notes and related cross-currency interest rate swaps are not terminated prior to their maturity

Revenue

H1 17 weeks YTD % % % Publishing (3) (5) (4) Print (4) (7) (5) Digital 48 44 46 Printing 3 (6) - Other (16) (5) (12) Revenue (2) (5) (4)

Publishing revenue declines increased during the period with print revenue declining by 7% partially mitigated by continued strong growth in digital revenue of 44%.

Circulation revenue fell by 3% for the period with cover price increases substantively offsetting volume declines. The rate of revenue decline is higher than the 1% decline in the first half due, in part, to the timing of cover price increases.

Publishing print advertising revenue deteriorated with a decline of 12% for the period compared to a decline of 9% for the first half driven by weaker national display advertising, in particular supermarket spending.

The increase in digital audience contributed to Publishing digital revenue growing by 44% during the period driven by advertising and other revenue growth of 46% and 33% respectively.

The 6% decline in printing revenue predominantly reflects the impact of a fall in newsprint revenues driven by falling volumes and the impact of lower newsprint prices.

Cash Flow and Financing

Cash flows remained strong which coupled with dividends from associates enabled net debt on a contracted basis to fall by £32 million during the period to £24 million.

On 25 July 2014, the Group replaced its bank facility with a new £60 million facility which is committed until July 2018 and this remained undrawn during the period. The final repayment of the private placement loan notes of £68.3 million is during June 2017.

Due to phasing, capital expenditure for the year is expected to be lower than the previous £15 million guidance. Restructuring charges in respect of cost reduction measures are expected to be marginally higher than the previous £12 million guidance, resulting in an increase in structural cost savings.

Other Matters

The Company continued to deal with and resolve a number of civil claims in relation to phone hacking. During the period a number of claims have been settled and a subsidiary, MGN Ltd, has admitted liability to a number of individuals who had sued MGN for alleged interception of their voicemails many years ago. The Company confirms that these steps were within those contemplated at the time of the interim results announcement, and that at this stage no changes are required to the provision held for dealing with and resolving civil claims in relation to phone hacking.

Conference Call

There will be a conference call for analysts and shareholders at 8am GMT on Monday 10 November.

Dial in details:  020 3426 2876   pin : 45423315#

Enquiries:

Trinity Mirror plc

Simon Fox, Chief Executive Vijay Vaghela, Group Finance Director

020 7293 3553 020 7293 3553

Brunswick

Mike Smith, Partner Nick Cosgrove, Partner

020 7404 5959 020 7404 5959

Forward looking statements

Statements contained in this Interim Management Statement are based on the knowledge and information available to the Company's directors at the date it was prepared and therefore the facts stated and views expressed may change after that date. By their nature, the statements concerning the risks and uncertainties facing the Company in this Interim Management Statement involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. To the extent that this Interim Management Statement contains any statement dealing with any time after the date of its preparation such statement is merely predictive and speculative as it relates to events and circumstances which are yet to occur. The Company undertakes no obligation to update these forward looking statements.

 

END

 

 

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