Trinity adds to boost in newspaper advertising

Published on Thursday 12 November 2009 19:46

TRINITY Mirror, publisher of the Daily Record and a series of local Scottish newspapers, yesterday raised hopes of a recovery in media advertising after it reported a significant easing in the rate of decline.

The company, which also owns the Daily Mirror and the People, said falls in advertising sales slowed to 5 per cent in the 17 weeks to 25 October, from 28 per cent in the first half of the year.

The newspaper publisher also struck an optimistic note about the immediate future, saying it expects advertising revenues from its national titles to be down 5 per cent this month compared to 10 per cent previously.

Its local titles, which include the Paisley Daily Express, Dumfries & Galloway Standard and Stirling Observer, are also in line for a better performance, the company said, although this part of the business has fared worse in the recession. Advertising revenue at its regional titles is forecast to be down 22 per cent this month, compared to a 36.8 per cent collapse in January.

Hopes of an advertising recovery lifted Trinity Mirror's shares by 9p to close at 177.7p.

The company said: "Whilst the trading environment will continue to be challenging over the remainder of the year and into 2010, we anticipate that the rate of decline in revenues will continue to improve."

The company has continued to slash costs during the recession and revealed yesterday that it has closed another four titles since the end of June. It axed 22 in the first six months of the year and about 30 in 2008.

The firm said yesterday that about 1,000 jobs have been lost so far this year.

Circulation revenues also improved marginally, down 3 per cent compared to a 4 per cent decline in the first half.

However, income from digital advertising fell 22 per cent amid a tough market for property and recruitment ads.

Analysts at Numis Securities said the results were "encouraging". They added: "We believe the downturn in the industry's revenues has been overwhelmingly cyclical and we see scope for a rebound in the group's revenues."