Trinity Mirror chief executive Sly Bailey says she expects the advertising market to stabilise during the year, helping the newspaper group meet its expected targets for the future.
Bailey’s upbeat forecast comes despite the newspaper group reporting a profits drop of 13.8% to £185.4m for the year ending December 31, 2006.
The group says it made cost savings of £20m last year and has earmarked a further £20m it aims to save by the end of the year.
Bailey says: “We have reduced costs significantly in response to the industry-wide decline in advertising.”
The extra £20m of cost savings will come from “the implementation of a new technology-led operating model which will further drive efficiencies and performance”, the group says.
The cost-savings drive will impact on Trinity’s regional and national titles.
It is unclear, however, whether the efficiency drive will impact on Trinity Mirror’s marketing department.