Shares in Trinity Mirror are currently up more than seven per cent after the publisher confirmed the closure of New Day this morning.
The title was launched on 29 February and is to publish its last edition tomorrow after circulation fell below 40,000.
City A.M. reported on the closure last night and it was confirmed by Trinity Mirror in a trading update ahead of its annual general meeting (AGM) today.
The trading update also noted that group revenue fell by 9.3 per cent in the first quarter of this year in a "volatile" market for print advertising.
But despite this, Trinity Mirror's share price was up more than seven per cent to 121.25p just after 10am on Thursday.
On Tuesday, the company – which also publishes the Daily Mirror, Sunday Mirror, Sunday People and regional newspapers – saw its share price drop to a three-year low.
In an interview with City A.M. on the day of New Day's launch, Trinity Mirror chief executive Simon Fox made it clear the company would be willing to close the title if it failed to deliver the necessary results.
He said: "We’ll watch that carefully over the next six months. We’ve said clearly if we’ve got it wrong – and there isn’t a demand for this paper – then we’re a commercial organisation, we’re very commercially disciplined, and if there isn’t such a demand we’ll either have to radically change it in some way or not continue with it."
Liberum media analyst Ian Whittaker said the closure was "no surprise" this morning in a note to investors.
Joe Rundle, head of trading at ETX Capital, said: “Trinity Mirror shares are popping as investors are cheering the group’s decision to ditch New Day. This is hardly a surprise – the move was moronic in the first place…
“Ill-conceived, badly executed and completely foolish – it’s hard to fathom what Trinity Mirror was trying to achieve.”