26 week period ending 29th June
2003
Trinity Mirror plc is today issuing a trading update ahead of
the company's interim results announcement on 31st July.
Advertising revenues
Advertising conditions have remained volatile during the last
six months. Group advertising revenues for the 26 week period are expected to be
flat year on year, with a 0.6% increase in the first quarter offset by a 0.4%
decline in the second quarter. The weaker performance in the second quarter
reflects the impact of the war in Iraq and incremental World Cup revenues in
June 2002.
The Regionals division (incorporating Digital Media and Metros)
is expected to achieve advertising revenue growth of 0.6% year on year for the
26 week period. Excluding Digital Media and Metros, advertising revenues for the
Regional newspaper titles are expected to fall by 0.3%. This reflects a 0.8%
decline in the first quarter partially offset by an expected 0.3% increase in
the second quarter.
The Regional newspaper titles (excluding Metros and our titles
in London and the South East) are expected to achieve advertising revenue growth
of 1.2% year on year. London and the South East advertising revenues are
expected to fall by 4.4% year on year. Recruitment revenues in the Regional
newspaper titles are expected to fall by 1.0% year on year, a 12.9% fall in
London and the South East substantially offset by an increase of 3.0% in the
rest of the Regional newspaper titles.
Advertising revenues for the 26 week period for the Nationals
division are expected to fall by 0.8% year on year, with an expected 0.1%
increase in the UK National titles offset by an expected 3.4% decline for the
Scottish National titles. A strong first quarter saw advertising revenue grow by
1.4%. The second quarter was weaker with advertising revenue expected to fall by
3.1%.
Circulation
Group circulation revenues for the 26 week period are expected
to fall by 2.8% year on year with a 7.5% decline in Q1 offset by an expected
2.1% increase in Q2.
Circulation revenues for the Regional newspaper titles are
expected to fall by 1.0% for the period, with cover price increases partially
offsetting revenue declines from volume decreases.
Circulation revenues for the Nationals division are expected to
fall by 4.4%, representing falls of 5.0% and 2.1% for the UK and Scottish
National titles respectively. Restoring the normal cover price of the Daily
Mirror has impacted circulation, which fell year on year by 5.2% (excluding
sampling) for the first 5 months. However, circulation of the Daily Mirror rose
1.9% month on month in May following a 3.4% month on month fall in April.
Outlook
As noted at the AGM the directors believe the
uncertain external trading environment will continue for the remainder of the
year. Nevertheless, subject to there being no further adverse changes to the
trading environment the Board anticipates a satisfactory outcome for the
year.
* all results are shown on a like for like basis, excluding the
results of Post Publications Limited and Ethnic Media Group Limited which were
disposed of in June 2002, Channel One which ceased trading in November 2002 and
Wheatley Dyson & Son Limited which was disposed of in February 2003.
