Trinity Mirror overcomes slow advertising market

British newspaper group Trinity Mirror today said cost savings boosted profits last year despite a slowdown in advertising revenues.

The publisher – which owns around 250 regional and national titles including the Daily Mirror, Racing Post, and the Liverpool Daily Post and Echo - banked pre-tax profits of £220.9m (€323m) in 2005 compared with £208.5m (€305m) a year earlier.

The 6% hike came despite the weaker advertising market which saw revenues fall from £1.13bn (€1.6bn) to £1.11bn (€1.6bn).

Outgoing Trinity Mirror chairman Victor Blank, who is set to join Lloyds TSB, said: “Seen in the context of our marketplace, these are good results.

“The year started with an encouraging advertising market but, as the economy slowed, reducing consumer confidence, 2005 became increasingly challenging, particularly for our industry.

“The weakening economy impacted most on advertising categories, with especially difficult conditions for display and recruitment advertising.”

In a bid to combat the slowdown in newspaper advertising, Trinity Mirror bought four online advertising businesses and a recruitment consultancy for £92.7m (€135.7m).

Profits were also helped by cost savings £5m (€7.3m) ahead of the £35m (€51.2m) target. The company today targeted further cost savings of at least £15m (€22m) in 2006.

But Blank warned: “The pressure on earnings continues as there is as yet no sign of improvement in our traditional advertising markets.”