Trinity Mirror enjoys Sunday bounce after NOTW closure

The publisher of the Daily Mirror today revealed a 17% fall in profits but said it was “highly encouraged” by improved Sunday sales following the closure of the News of the World.

Trinity Mirror, which also publishes more than 160 regional newspapers, said pre-tax profits dropped to £41.9m in the 26 weeks to July 3, as circulation revenues fell 5% and public sector advertising declined by 24%.

But it has been encouraged by trading in July, as its Sunday papers benefited from the closure of the News Corporation-owned tabloid in the wake of the phone-hacking scandal. This helped circulation revenues increase 2% in the month.

It increased its target of cost savings for the current year by £10m to £25m but said there will be no major new job cuts.

The group, which owns the Sunday Mirror and The People as well as the Daily Record and Sunday Mail in Scotland, cut 182 posts in the period and carried out a number of other efficiency savings.

The company employs some 6,500 people in more than 60 locations across the UK.

Revenues declined 2.9% to £371m in the first half after a sharper-than-expected deterioration in trading conditions.

Excluding the benefit of the regional newspapers it acquired from the Guardian Media Group last year, including the Manchester Evening News, revenues fell 6.9% to £339m.

Underlying advertising revenues saw an 11% decline, driven by the fall in public sector spending, while it said the wider implications of the Government cuts were being felt across all categories.

The group said: “The difficult trading conditions, driven by ongoing public sector spending cuts, tax increases, and weak retail sales have impacted revenues in conjunction with continued substantial inflationary cost pressures, in particular newsprint prices.”

But it had taken advantage of the demise of the News of the World by launching a series of marketing initiatives to help increase its market share, which had helped circulation revenues from its nationals rise 4% in July.

Chief executive Sly Bailey said: “Following changes to the national Sunday newspaper market we are highly encouraged by the considerable circulation volume growth seen by our national Sunday titles.”