Trinity Mirror has posted a 19.4% drop in advertising for the 17 weeks to the end of October, underlining a worsening of trading conditions for newspaper publishers. The results follow the posting from regional publisher Johnston Press yesterday (12 November) showing property advertising halving during the past 17 weeks year-on-year.
Trinity Mirror is suffering from ad budgets cut backs in the economic downturn and the migration of readers to online products. The publishers are looking to cut costs with job cuts and Johnston, which publishes The Scotsman, has lost 936 staff this year.
Trinity Mirror, led by chief executive Sly Bailey (pictured), stated that actual group revenues have worsened and fell 11.4% for the 17 weeks to 26 October with the only positive news being group digital revenue up 15.5 %. Group revenues for year-to-date fell 5.4% and advertising 11.3%.
Trinity Mirror, which publishes regional titles and the national newspapers including the Daily Mirror, Sunday Mirror and The People, said that in view of “uncertain market conditions” it expects trading to remain challenging and is “cautious about prospects for the remainder of 2008 and for 2009”.
The Nationals division saw ad revenues drop 9.9% year-to-date and 15.4% for the 17-week period. While circulation revenues dropped 4.7% over the period.
The Regionals division, which includes newspapers such as the recently relaunched Liverpool Echo, saw ad revenues fall 12% year to date and 21.2% for the period. Display ad revenue fell 11.6%, property fell 42.6%, motors fell 26.8% and recruitment 26.6%.
Circulation revenue for the Regionals fell 5.7% over the period.
The company aims to deliver annual cost savings of £25 million this year and incremental cost savings of £20 million next year. It completed investment in national presses in the first half of the financial year to give its titles full colour and is investing in its Oldham print plant.
DMGT, which publishes The Daily Mail and The Mail On Sunday, is expected to post full year results on 20 November.