Trinity Mirror Group, one of Britain’s largest national and regional newspaper groups, saw its shares fall yesterday by 24.5p to 380.5p – hovering just 3.5p above their five year low – after admitting that advertising revenues had fallen well below the forecast level.
Adspend at national newspapers, The Mirror, Sunday Mirror and Sunday People, was down 10%; while “very difficult” trading conditions had hit its Scottish titles.
Chief executive Philip Graf played it safe by taking a sombre view of the year’s second half, which would be epitomised by “a difficult and volatile advertising market”. There was “limited visibility” on advertisers’ intentions and “no signs of a return to the level of advertising revenue growth that was seen in the earlier part of the year”.
Cost-cutting measures were already in hand to counter the effect of revenue loss on profit levels, but the group would not be drawn on whether this would lead to job losses.
News source: The Times (London)