Trinty Mirror warns of 10% profits fall

Trinity Mirror is predicting a 10% fall in its full year profits as its advertising revenue is increasingly hit by the worsening economic climate. It issued the warning in a trading statement for the nine weeks to June 29.

Underlying group revenue fell by 7.8% during the nine-week period, while underlying advertising revenue fell by 12.6%. Ad revenue for its national and regional newspaper businesses are also expected to fall by 6.5% and 6% respectively when it releases its full year to July 31 results.

However, digital revenues are expected to rise by 14%, with a predicted growth of almost 99% in its nationals division, and an increase of 34.4% in its regional business.

The company states: “Advertising market conditions have deteriorated reflecting the uncertain outlook for the UK economy with the ongoing adverse implications of inflationary cost pressures and the wider implications of the credit crunch.”

Trinity Mirror owns about 200 national and regional newspapers including the Daily Mirror.

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