Press groups set to exit FTSE 250

by John Reynolds, Media Week 10-Dec-08, 15:50

LONDON - Trinity Mirror is set to drop out of the FTSE 25O today following a difficult year which has seen the Daily Mirror-owner's share price drop 85% over 2008.

Johnston Press and European newspaper group Mecom are also expected to fall out of the FTSE 250.

A FTSE committee will meet this afternoon to make its decision about which companies will be promoted to the FTSE 100 and relegated to the FTSE 250.

Trinity Mirror, which has recently closed a raft of local newspapers, has suffered from a deteriorating advertising market, along with falling circulations of its newspapers this year that has dented its share price.

In November, the group, headed by chief executive Sly Bailey, released a profits warning that its revenues would be down by 5.4% year on year.

Trinity Mirror’s exit is indicative of how media companies share prices have suffered in recent times.

ITV fell out of the FTSE 100 in September this year and has not returned and Daily Mail owner Daily Mail & General Trust (DMGT) fell out of the FTSE 100 last year.

Andy Viner, head of media at law firm BDO Stoy Hayward LLP, said: "Given the volatility of Trinity Mirror’s share price over the past few months, it is little wonder that they join a number of other companies in being relegated from the FTSE 250."