Last checked at 9 Oct 2017 07:00
9 October 2017
Trinity Mirror plc
Trading Update for Third Quarter of 2017
The Board remains confident that performance* for the year will be in line with expectations.
We have made good progress against our strategic initiatives and the business continues to deliver strong cash flows supported by structural cost savings of £20 million for the year which is £5 million ahead of our initial target. Net debt at the end of the third quarter fell by £3 million to £19 million and this is after paying the interim dividend of £6 million in September 2017.
Group revenue on a like for like basis** fell by 8% in the third quarter, an improvement on the 9% decline in the first half. We are experiencing improving trends in nationally sourced print advertising revenues, though local advertising, particularly classified remain challenging and volatile.
Publishing revenue fell by 9% with print declining by 10% and digital growing by 4%. Publishing print advertising and circulation revenue fell by 16% and 7% respectively. We delivered continued growth in digital display and transactional revenue of 14%, but classified digital revenues, which are substantially jointly sold with print, remained under pressure.
£10 million share buyback
Since announcing our £10 million share buyback programme in August 2016, the Group has acquired 8.9 million shares for £9.0 million and has paid £7.5 million to the pension schemes relating to the share buyback programme.
Update on discussions with Northern & Shell
Further to the announcement made on 8 September 2017, the Group continues to make progress on discussions to acquire 100% of the publishing assets of Northern & Shell. Further updates will be made when appropriate.
Enquiries
Trinity Mirror 020 7293 3553
| Brunswick 020 7404 5959 |
Simon Fox, Chief Executive Vijay Vaghela, Group Finance Director | Nick Cosgrove, Partner William Medvei, Director |
The statement on future performance is given as at the date of this announcement and is subject to a number of risks and uncertainties and actual results and events could differ materially from those currently being anticipated as reflected in the statement. The Company undertakes no obligation to update this forward-looking statement.
* On an adjusted basis excluding non-recurring items, restructuring charges in respect of cost reduction measures, the amortisation of intangible assets, the pension administrative expenses, the retranslation of foreign currency borrowings, the impact of fair value changes on derivative financial instruments, the pension finance charge and the impact of tax legislation changes.
** The like for like trends for 2017 exclude from the 2016 comparative: the extra week of trading in 2016, the Independent print and distribution contract which ceased in April 2016, Rippleffect which was sold in August 2016, the four Metros handed back to DMGT and other portfolio changes.