26 June 2015

Trinity Mirror plc

Pre Close Trading Update

Trinity Mirror plc is issuing a pre close trading update ahead of its 2015 interim results announcement on 3 August 2015.

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 year to be in line with expectations.

During the 26 weeks to 28 June 2015 ('the period') revenue is expected to fall by 11% year on year with underlying* revenue falling by 9%. On an underlying basis Publishing revenue is expected to fall by 9%, with print declining by 11% and digital growing by 26%.

We continue to deliver strong growth in our digital audience** with average monthly unique users and page views growing by over 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 by more challenging print advertising markets with print advertising revenue expected to fall by 19% in the period. On an underlying basis print advertising revenue is expected to fall by 17%. 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 to Friday edition.

The business continues to deliver strong cash flows and paid a dividend of £7.5 million in June 2015, the first dividend payment since 2008. 

In light of the more challenging revenue environment the Group has reviewed its current cost reduction programme and is now targeting structural cost savings of £20 million for the year, an increase on the £10 million target announced in March 2015. This coupled 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 costs increasing by some £5 million to £15 million.

Further to our announcement on 4 June 2015, we confirm that our subsidiary, MGN Limited is seeking permission to appeal the judgment handed down by Mr Justice Mann on 21 May 2015 in 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 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.

*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.