An estimated £40 million was yesterday wiped off the stock market value of Trinity Mirror, publishers of The Daily Record and Sunday Mail newspapers, plus numerous Scottish local titles, as part of the Scottish & Universal Newspapers division.
Reports today's press, shares in Trinity Mirror yesterday ended down by 15 per cent, or 16p, to 88.75p. It came on the back of a trading update – issued earlier in the day – from the publishers that its advertising revenue had dipped by six per cent.
The Herald picks up the story on page 33 with the headline, ‘Trinity forecasts tough year ahead’. Says The Herald: “Regional advertising slid 6.7 per cent on a like-for-like basis, and national advertising fell 1.3 per cent.”
A statement from Trinity Mirror says: “The board envisages that the trading enviornment remains challenging over the remainder of the year and into 2011, however, it anticipates that the rate of decline in revenue will improve.”
There is some cause for opitmism due to the performance of the recently-purchased GMG Regional Media – the local newspaper operation of the Guardian Media Group, which includes the Manchester Evening News. Adds The Herald’s report, when taking into account this contribution “sales rose four per cent, with advertising revenue up 13 per cent”.
In its trading update, Trinity Mirror remain bullish about their hopes to deliver £25 million in cost savings for the year. Says their statement released yesterday: “The board remains confident that the group will deliver a robust performance in 2010 in line with expectations.”
It adds: “The group remains cash generative and net debt has fallen by a further £20 million to £288 million since the half year. The board expects net debt to fall further in the remainder of the second half of the year.”
As reported earlier this week in allmediascotland, Johnston Press – publisher of The Scotsman – also announced a drop in advertising revenue.