Trinity Mirror PLC
15 December 2005
15th December 2005
Trinity Mirror plc
Pre Close Trading Update
Trinity Mirror plc is today issuing its regular trading update, ahead of its
close period. The Company will announce its preliminary results for the 52 weeks
ending 1 January 2006 on 2 March 2006.
Advertising revenues
In a difficult advertising environment, Group advertising revenues for the 5
months to November 2005 excluding acquisitions fell by 7.9% year-on-year. Group
advertising 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 for
the five months to November 2005. Recruitment advertising was particularly weak
given the slowing economy and increasing unemployment, with revenues falling by
20.5% year-on-year. However, we saw continued growth in property advertising
which was up by 6.4% year-on-year. The period also benefited from strong
advertising revenues resulting from the changes in the alcohol licensing laws.
Advertising revenues for the Nationals division fell by 14.4% for the five
months to November 2005, with a 15.9% decline in the UK National titles and a
10.1% decline in the Scottish National titles.
Advertising revenues for the Sports division and the Magazines and Exhibitions
division 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 the
Regional newspaper titles, 4.1% for Scottish Nationals and 4.9% for the Sports
titles has been partially offset by declines of 0.3% for the UK Nationals and
4.8% for Magazines. The circulation revenue performance reflects the benefit of
increased cover prices.
Acquisitions
The acquisitions completed during 2005 are performing in line with our
expectations.
Outlook
Although the Group has experienced a difficult advertising trading environment
over the second half, the benefit of management initiatives to mitigate the
impact on profits gives the Board confidence in an outturn for the year in line
with expectations.
The downward trend in the advertising market continues and there will be
inflationary and other cost pressures in 2006, including higher newsprint
prices. Management is running the business on the assumption that the
advertising environment will continue to be challenging and is therefore taking
action now on the cost base which will deliver further cost savings of up to £15
million in 2006. These savings are expected to partially mitigate the uncertain
revenue outlook and cost increases anticipated in 2006. Exceptional costs of
approximately £12 million associated with these savings will be reported in
2005.
Further enquiries:
Trinity Mirror plc
Vijay Vaghela 020 7293 3000
Group Finance Director
Nick Fullagar
Director of Corporate Communications
Finsbury
James Leviton 020 7251 3801
This information is provided by RNS
The company news service from the London Stock Exchange
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