Trinity Mirror profit upgrade boosts shares

The publisher of The Journal and The Chronicle's share price rose yesterday after the business made an unexpected profit upgrade for 2013

The Journal
The Journal

The publisher of The Journal and The Chronicle’s share price rose yesterday after the business made an unexpected profit upgrade for 2013.

Trinity Mirror said digital revenues shot up more than 30% in November and December 2013, prompting investors to react positively.

The share price had risen by 10.5p, to 186p, by 9.30am on Tuesday and closed at 183.75p, up 8.25p.

The company said adjusted operating profits for the year ended December 2013 will now be ahead of expectations thanks to an improved trading performance at the end of 2013, with total revenues down just 1% year on year, compared with a 7% decline in the first 10 months of 2013.

The publisher of the Mirror and the Sunday Mirror put the improvement down to 32% year-on-year growth in digital revenue in the final two months of 2013, along with growth in printing and “other” income substantially offsetting a marginal decline in circulation and print advertising.

Digital revenues will now be up 3% year on year for the year, after a 3% decline in the 10 months to the end of October.

The company also revealed it expects to make structural cost savings of £10m and ongoing cost mitigation actions to “ensure that the Group has adequate headroom for investment whilst supporting profits and cash flows”.

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