Newspaper publisher Trinity Mirror increased its cost savings targets for the year to £20m today as it reported a sharp fall in revenues in a tough print advertising market.
The company’s revenues for the 26 weeks to 2 July were reported at £320m, down 14.6 per cent from £374.7m in the first 27 weeks of 2016.
Trinity Mirror’s adjusted pre-tax profits for the period were £61.3m, down from £66.9m.
The publisher of the Daily Mirror, Sunday Mirror, Sunday People and more than 140 regional newspapers also today hiked up its interim dividend by 7.1 per cent to 2.25p. It is also in the middle of a £10m share buyback scheme.
The company said it had delivered £10m of cost savings within the first half of the year, and it today increased its target for the year from £15m to £20m.
Why it’s interesting
Trinity Mirror noted in its half-year result today that it was in the market for consolidation.
We continue to evaluate a number of ongoing opportunities that drive value and see ourselves as a consolidator in the newspaper industry.
The company is understood to be progressing towards a deal to buy Richard Desmond’s Express Newspapers alongside newspaper industry veteran David Montgomery and other investors.
Trinity Mirror’s share price remained steady following its half-year report today.
What the company said
Chief executive Simon Fox said:
Whilst the trading environment for print in the first half was volatile, we remain on course to meet expectations for the year.
I continue to anticipate that the second half will show improving revenue momentum as we benefit from initiatives implemented during the first half of the year.