Trinity Mirror plans £45m savings after ad revenue slump

by Tristan O'Carroll, mediaweek.co.uk 13-Nov-08, 10:20

LONDON - Trinity Mirror plans to cut costs by at least £45m for the remainder of this year and next, after its ad revenue slumped by 20% between June and October.

Unveiling a trading statement for the 17 weeks to 26 October, the company said group ad revenue fell by 20.1%. This marks a sharp deterioration in its commercial performance: between the start of 2008 and 26 October ad revenue fell by 11.3% year on year.

Like Johnston Press, which yesterday said its property ad revenue has slumped markedly, Trinity Mirror said today its property ad revenue fell by 46.4% year on year during the 17 weeks until 26 October. Recruitment ad revenue, meanwhile, fell by 27% over the same period.

At its regionals division, advertising revenue has fallen by 12% over the year to 26 October. At its nationals division, ad revenue dropped by 9.9% during the same period.

Group circulation revenue has fallen by 2.9% over the year to 26 October, with a decline of 3.8% for regionals and 2.7% for nationals.

Meanwhile, group digital revenue increased by 29.2% over the year to 26 October, with an increase of 26.0% for its regionals and 55.5% for its nationals.

In a statement, the company said: "In line with the worsening economy and the impact it has had on the advertising market, trading conditions have continued to deteriorate since the half year, with rates of decline accelerating in all advertising categories.

"Digital revenues continue to grow, though at a slower rate. In addition, the reduction in consumer discretionary spend is having a marginal impact in circulation revenues. In view of these uncertain market conditions, we expect trading to remain challenging and, therefore, remain cautious about prospects for the remainder of 2008 and for 2009."