Cost cuts at Trinity Mirror start to pay off as advertising begins to pick up
Newspaper publisher Trinity Mirror reported a leap in first-half profits driven by cost cuts and helped by improving advertising trends.
The publisher of the Daily Mirror said national advertising revenue picked up by 2.2 per cent in the first half but advertising at its regional newspapers fell eight per cent as recruitment and property sales remained weak.
Trinity Mirror said national advertising would be flat in July, with regionals’ revenue dropping nine per cent, but said the general trend was positive.
Total revenue for the six months was flat at £382.2m. Operating profit rose 25.7 per cent to £61.7m.
It raised its 2010 cost-savings target to £25m from £20m and said it had achieved £15m of this in the first half. The company is cutting about 200 jobs at its newspapers.
Earlier this year, Trinity Mirror took the first step in consolidating Britain’s regional newspapers, which have all been devastated by a loss of classified advertising revenue, by buying Guardian Media Group’s local newspapers.