Trading Update

RNS Number : 4241J

Trinity Mirror PLC

17 December 2015

 

17 December 2015

Trinity Mirror plc

Trading Update

The Group completed the acquisition of Local World Holdings Limited ('Local World') on 13 November 2015 and since that time the business has traded in-line with our expectations. We have commenced numerous integration initiatives, but given the short period over which Local World has been under our ownership, this update focuses on the trading performance for the Group excluding Local World.

The Board now expects performance* for the year to be marginally ahead of expectations.

While the trading environment remains volatile, revenue for the fourth quarter (13 weeks to 27 December 2015) is expected to be in-line with the third quarter, down 9% year on year. Underlying revenue** is also expected to be in-line with the third quarter, down 7% year on year. Publishing revenue is expected to fall by 7% with print declining by 8% and digital growing by 12%.

We continue to deliver strong growth in our digital audience*** with average monthly unique users and page views growing year on year by 18% and 26% respectively for October and November.

Underlying circulation and print advertising revenue in the fourth quarter is expected to fall by 4% and 16% respectively on the prior year with circulation revenue trends marginally better than the third quarter and advertising revenue trends in-line with the third quarter.

We are making good progress against our strategic initiatives and the business continues to deliver strong cash flows and will deliver the targeted structural cost savings of £20 million for the year.

Enquiries

Trinity Mirror                                       

Simon Fox, Chief Executive                                       020 7293 3553

Vijay Vaghela, Group Finance Director                       020 7293 3553

Brunswick

Mike Smith, Partner                                                    020 7404 5959

Jon Drage, Director                                                    020 7404 5959

The statement on future performance is given as at the date of this announcement and is subject to a number of risks and uncertainties and actual results and events could differ materially from those currently being anticipated as reflected in the statement. The Company undertakes no obligation to update this forward-looking statement.

*On an adjusted basis excluding non-recurring items, restructuring charges in respect of cost reduction measures, the amortisation of intangible assets, the retranslation of foreign currency borrowings, the impact of fair value changes on derivative financial instruments, the pension finance charge and the pension administrative expenses.

**Underlying trends exclude revenues for titles closures in the South and the newsprint supply to the Independent and i which ceased at the end of 2014. In 2014 the revenue generated by the titles closed in the South was £4.5 million and from newsprint supply to the Independent and i was £11.1 million.

***Average monthly unique users and page views, excluding Local World, for the Publishing division across web, mobile and apps for October and November 2015 versus October and November 2014.

 

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