REG - Trinity Mirror PLC - Trading Statement <Origin Href="QuoteRef">TNI.L</Origin>

ReachAnnouncement

16/07/2015 12:46

RNS Number : 2849R
Trinity Mirror PLC
26 June 2015
26 June 2015
Trinity Mirror plc
Pre Close Trading Update
Trinity Mirror plc is issuinga pre close trading updateahead ofits2015interim results announcement on 3August2015.
The revenue environment has remained challenging throughout the first half, continuing the trends experienced at the end of 2014. Whilst monthly revenue trends are expected to be impacted by further volatility for the rest of the year, at this stage, the Board continues to expect profits for the yeartobe in line with expectations.
During the26 weeks to 28 June 2015 ('the period') revenueis expected to fall by 11%year on year with underlying*revenue falling by 9%. On an underlying basis Publishing revenueis expected to fall by 9%, with print declining by 11%anddigital growing by26%.
We continue to deliver strong growth inourdigital audience** with average monthly unique users and page views growing byover 50%.The growth in audience drove an increase in digital display revenue of over 40%. Mobile continues to be an increasingly important component of digital revenue growth and we are enhancing our products and advertising formats to take advantage of the ongoing opportunity in this area.
Publishing print revenue trends have been adversely impacted bymore challenging print advertising markets with print advertising revenue expected to fall by19% in the period. On an underlying basis print advertising revenueisexpected to fall by17%. The key retail and telecoms categories have been more challenging reflecting tough comparators and reduced volumes across the market. Circulation revenue is expected to fall by 6%, with trends improving from May following a cover price increase for the Daily Mirror Monday toFriday edition.
Thebusiness continues to deliver strong cash flows and paid a dividend of 7.5 million in June2015, the first dividend payment since 2008.
In light ofthe more challenging revenue environment the Group has reviewed its current cost reduction programme and is now targeting structural cost savings of 20million forthe year, an increase on the 10 million target announced in March 2015.Thiscoupled with ongoing cost mitigation actions and continued investment to drive digital audience and revenue will help underpin profits. The increased targeted cost savings will result in restructuring costsincreasing by some5 million to 15 million.
Further to our announcement on 4 June2015, we confirm that our subsidiary, MGN Limited is seeking permission to appeal the judgment handed down by Mr Justice Mann on 21 May 2015in relation to civil claims relating to phone hacking.As we have previously indicated, there remains uncertainty as to how matters will progress. Further updates will be made if there are any significant developments.
Enquiries
Trinity Mirror  
Simon Fox, Chief Executive 020 7293 3553
Vijay Vaghela, Group Finance Director020 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.
*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 for the Publishing division across web, mobile and apps for January to June 2015 versus January to June 2014.

This information is provided by RNS
The company news service from the London Stock Exchange
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