Trinity Mirror PLC
13 January 2000
TRINITY MIRROR PLC
PRE CLOSE PERIOD TRADING UPDATE
To improve the flow of information to all investors, the Board of Trinity
Mirror plc has decided to issue trading updates prior to the two close periods
each year. The first of these statements in respect of the second half of
the financial year ended 2 January 2000, is issued today ahead of the Group's
preliminary results announcement on 15 March 2000.
Overall Trinity Mirror's operations produced a strong performance in the
second half of 1999, in line with market expectations at the time of
announcing its merger, which completed on 6 September 1999. Good progress
has been made in the integration of the businesses. The benefits of the
integration, the favourable economic conditions and previous investment in
titles provide a strong basis for growth.
Operating review
National and sports newspapers
Advertising revenues for the national newspapers have been strong during the
period producing second half year on year growth of 9 per cent.
The Mirror's circulation performance during the last six months has led to
further growth in its market share. The Mirror outperformed its direct
competitors during this period. Increased revenue from the 2 pence price rise
introduced in September (Monday to Friday editions) and 1 pence price increase
on the Saturday edition (from late November) has been invested in further
enhancing the newspaper, including the launch of 'M' magazine.
The Sunday Mirror has increased its market share during the last six months of
1999. The estimated decline in circulation of less than 0.5 per cent compares
very favourably with 11 per cent in the same period of 1998. This performance
reflects management actions in refocusing the paper's editorial stance closer
to that of its sister daily title.
The Sunday People's circulation has declined by 8 per cent during the last six
months compared to the same period in 1998.
The Racing Post has improved circulation during 1999 with strong growth in
advertising revenues from all sectors.
Scottish national and regional newspapers
The Scottish national newspapers have also achieved good growth in advertising
revenues, both national and local. Circulation revenues have remained stable
despite the increased promotional activity of the English tabloids.
Local factors led to variable growth rates in advertising revenues across the
regional newspapers with particularly encouraging performances in
the Scottish, Southern, Northern Ireland and Welsh regions. Industrial
and employment issues in the Midlands and a lack of economic buoyancy in the
NorthWest have affected the performances of these two regions. Both
regional display and classified advertising continued to show growth in the
second half of 1999 with an overall growth for the six months, year on year,
of 4 per cent.
The Group continues to be in discussions with its advertising customers
regarding irregularities in the reporting of circulation numbers to the Audit
Bureau of Circulation on certain of its Birmingham titles. Trinity
Mirror remains confident that the outcome of these discussions and the impact
on the Group will be as stated in its November announcement.
Magazines and exhibitions
The earnings of the division have increased during 1999, primarily as a result
of the acquisitions in 1998 and during 1999.
New and interactive media
During the year the Group has continued to strengthen its existing new media
properties and core brands, investing in local online franchises and
developing national niche businesses using content from our own sites and that
of our partners. Including IC24.net, the Group's free internet service
provider launched in April, monthly page impressions on Group sites have
increased to over 32 million.
Building on the Group's existing investment in its online businesses, the
development of Trinity Mirror's new media strategy is well advanced. Trinity
Mirror intends to outline its new media strategy by the time of the Group's
preliminary announcement in March.
Integration
The integration of the two businesses is on track to deliver annual pre-tax
cost savings of at least £15 million by the end of 2002, as indicated at the
time of announcement of the merger.
Belfast Telegraph and Newscom
The Group is proceeding with the divestment of those Northern Ireland titles
(including the Belfast Telegraph) which were required to be disposed of as a
condition of consent for the merger. Prospective purchasers will be contacted
imminently.
Trinity Mirror's potential interest in acquiring Newscom was announced in
December and its application for consent was subsequently referred by the
Secretary of State for Trade and Industry to the Competition Commission. The
regulatory process should be completed by the end of April.
Enquiries:
Trinity Mirror
Philip Graf, Chief Executive 0171 293 2803
John Allwood, Deputy Chief Executive 0171 293 3161
Margaret Ewing, Group Finance Director 0171 293 3228
Finsbury
Rupert Younger (press and analysts) 0171 251 3801
Justine Samuel (investors) 0171 251 3801
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.