Trinity Mirror, the publisher of the Mirror national newspapers and more than 150 regional titles, is expecting a 17 per cent drop in advertising revenue in the last quarter of this year.
However, shares in the company jumped eight per cent on Friday morning after it reported a performance “marginally ahead of expectations”, with its net debt falling to around £35m, which it said was “significantly better than expectations”.
At the end of a tough year for newspaper publishers, Trinity said it anticipates an eight per cent drop in group revenue for the 13 weeks to 1 January 2017, an improvement on a nine per cent decline in the third quarter.
The company said its publishing division revenue will be down eight per cent, with an eight per cent growth in digital failing to offset a 10 per cent decline in print. In print, advertising will be down 17 per cent and circulation down five per cent.
Shortly after 8am, Trinity’s share price was trading up eight per cent to 90.75p.
Why it’s interesting
It’s been a challenging year for newspaper publishers across the board, with revenues, profits and headcounts in decline.
Trinity Mirror’s year started optimistically – announcing the launch of a new newspaper, New Day, shortly after the Independent went digital-only.
But, after launching on 29 February, New Day closed just over two months later.
What the company said
We continue to make good progress against our strategic initiatives whilst supporting profits and delivering strong cash flows. The board is confident that performance for the year will be marginally ahead of expectations, with net debt falling to around £35m by the year end, significantly better than expectations.