30 September 2016
Trinity Mirror plc
Although the trading environment has remained challenging during the third quarter of the year, our continued focus on growing digital revenue and driving efficiencies, provides the Board with confidence that profit for the year will be in line with market expectations.
Group revenue* on a like for like basis is expected to fall by 9% in the third quarter compared to a decline of 8% in the first half. Publishing revenue is expected to fall by 10% with print declining by 12% and digital growing by 11%. Publishing print advertising and circulation revenue fell by 21% and 6% respectively. Classified digital revenues, which are substantially jointly sold with print, remained under pressure but we delivered strong growth in digital display and transactional revenue of 24% as digital audiences continued to grow.
During the third quarter, the Group has:
· acquired 1.6 million shares for £1.5 million under the £10 million share repurchase programme announced in August;
· completed the sale of Rippleffect, a digital marketing services agency which was reported in our Specialist Digital division, for a cash consideration of £2 million. The business generated revenue of £5.7 million in 2015 and £3.4 million prior to its disposal in 2016 and will have no impact on profits for the year; and
· handed back four of the eight regional Metro franchises it operates to Daily Mail and General Trust plc with effect from 1 January 2017. These titles are expected to generate revenue of circa £10 million in 2016 with a minimal contribution to profits.
We continue to make good progress against our strategic initiatives and the business continues to deliver strong cash flows supported by structural cost savings of some £20 million for the year which is £5 million ahead of our initial target.
020 7293 3553
020 7404 5959
Simon Fox, Chief Executive
Vijay Vaghela, Group Finance Director
Mike Smith, Partner
Will Medvei, Director
The statement on future performance is given as at the date of this announcement and is subject to a number of risks and uncertainties and actual results and events could differ materially from those currently being anticipated as reflected in the statement. The Company undertakes no obligation to update this forward-looking statement.
* Like for like assumes Local World was owned from the beginning of 2015 and excludes revenue from the Independent print and distribution contract which ceased in April 2016, revenues from Rippleffect which was sold in August 2016 and revenue from the contract to publish the Rugby World Cup match day programmes in 2015. The third quarter compares the 13 weeks to 2 October 2016 with the 13 weeks to 4 October 2015. The first half compares the 27 weeks to 3 July 2016 with the 27 weeks to 5 July 2015. 2016 will be a 53 week period and the additional weeks trading is included in the first half of the year.
This information is provided by RNS