Advertising slump dents Trinity sales
Trinity Mirror revealed an 8 per cent fall in first-half sales to £460.8m, with heavy falls in advertising revenues continuing to take their toll
The parent company of the Daily Mirror was further rocked by a 15 per cent slump in advertising sales during the month of July. Advertising comprises nearly 51 per cent of the group’s revenue and the update envisaged that this area will remain a “key risk” over the next six months.
“The slowing economy and uncertain outlook has already impacted the consumer advertising markets and this could continue or possibly worsen as we proceed through the remainder of the year,” the company said.
The publisher also reported a net debt of £424m, an increase of £176m, which took into account a £102m share buyback.
Richard Hitchcock, media analyst for Numis Securities, told CityA.M: “The trading environment is very difficult and Trinity Mirror are directly exposed to the consumer effects of the economic slowdown. However, what they have done is provide significant reassurance on pensions and the balance sheet, hence the slight bounce of the share price yesterday.”
The figures mean Trinity Mirror will next year seek to replicate the £20m cost cuts the group is on course to make in 2008.
CEO Sly Bailey said: “We believe that these initiatives, alongside good portfolio management and our continued investment to build our digital revenues will see the group through this economic downturn and best position the business for growth when market conditions improve.”
