26-week period to 31st December 2000
Trinity Mirror, the UK's largest newspaper publisher, is today
issuing a trading update in respect of the 26 week period to 31st December 2000,
ahead of the Groupundefineds preliminary results announcement on 15th
March.
Overall, revenues for the year to 31st December 2000 were in
line with our expectations with, as anticipated, the performance in the first
half of the year being stronger than the second half. However, the trading
environment improved during the last two months of the year and this has
continued into the first week of January.
In the latter half of 2000, like-for-like* advertising revenues
of the regional newspaper operations grew by 4.2%. Recruitment advertising
revenues remained very strong, with an increase for the 26 week period of 15.8%.
The Groupundefineds regional newspapers continued to experience a decline in
circulation during the second half of the year in line with the regional
newspaper market. The Group completed the acquisition of Southnews on 28th
November. A management team for the combined operations of Southnews and Trinity
Newspapers Southern has subsequently been appointed. Good progress is being made
in the integration of the businesses and the realisation of the anticipated £4
million of cost savings by December 2001. Southnewsundefined trading performance
continued in line with expectations during December and it has had a good start
to 2001.
The Group continued to publish the Metro newspaper in Birmingham
and Newcastle throughout the period and, on 3rd January 2001, expanded its Metro
network to include the publication of the Scottish Metro. The competing free
morning title in Newcastle ceased publication at the end of December.
The national tabloid newspaper market remained highly
competitive in terms of circulation and advertising during the 26 week period to
31st December 2000. Total advertising revenues of the Groupundefineds five
national newspapers grew during the period by 0.6% (against a very strong
advertising performance in the latter half of 1999 and an increase of 5.0% in
the first half of 2000). Circulation revenues during the period decreased by
1.1%. The Mirror, Sunday Mirror and Sunday People saw small losses in
circulation market share during the latter half of the year. The two Scottish
national newspapers, the Daily Record and Sunday Mail, marginally improved their
share of the Scottish tabloid market.
The Groupundefineds sports newspapers, including The Racing
Post, continued to see very strong growth in advertising and circulation
revenues during the latter half of the year. Compared to the same period in 1999
the growth for the latter half of 2000 was 39% and 19% respectively ( including
the benefit of the acquisition of Raceform in October 1999).
Implementation of the Groupundefineds digital media strategy is
now progressing well, with icShowbiz launched towards the end of December and
icBirmingham and icCoventry due to be launched during January. ic24, the
Groupundefineds ISP, had in excess of 790,000 subscribers at the end of December
with more than 250,000 active within the last 30 days. Group sites recorded over
57 million page impressions in December.
Revenues in 2001 from Southnews, together with improved Metro
and digital media revenues, will contribute to an increase in the
Groupundefineds rate of revenue growth. This growth in revenues, as well as cost
control and further cost saving benefits from the 1999 Trinity Mirror merger,
will offset the increase in the price of newsprint (which will be a significant
factor during the year). The Board is confident of a satisfactory performance in
2001.
* regional newspaper advertising revenues are stated exclusive
of the revenues of The Belfast Telegraph and Southnews and adjusted to eliminate
the 53rd week of revenues in 1999 from all former Trinity plc regional
operations (ie all other than the Midlands and Irish businesses).
