Trinity Mirror has announced a £10 million increase in its costs savings in its half-year report.
The figures, published today, show operating profit is down by 23.7pc to £47.1 million and cost savings will be increased from £15 million to £25 million.
The half-year financial report covers the 26 week period until 3 July 2011 and show a 2.9pc drop in group revenue from £382.2 million to £371.0 million with underlying revenue, excluding the revenue contribution in the period from the acquired GMG Regional Media businesses, falling by 6.9pc from £364.0 million to £339.0 million.
The report also reveals a programme that will see the Scottish Daily Record and Sunday Mail become ‘one of the most technologically advanced and operationally efficient newsrooms in Europe’ through a ‘technology led operating model’ that will drive operating efficiencies whilst enhancing multi-media capabilities.
Sly Bailey, chief executive of Trinity Mirror said: “While the economic environment remains difficult we have undertaken a series of actions to limit the impact on operating profit. The roll out of our technology led operating model continues to deliver efficiencies and today we have announced an increase in our 2011 cost savings target to £25 million.
“Despite the difficult trading conditions, we are encouraged that our Nationals broadly maintained advertising volume market share and our Regional advertising performance was in line with other publishers.
“At the same time we’re investing across the Group to diversify and grow revenues. Following changes to the national Sunday newspaper market we are highly encouraged by the considerable circulation volume growth seen by our national Sunday titles.
“Our focus on maximising profits in the short term through tight management of costs while investing for growth creates a good backdrop for shareholder value creation over time.”
The report shows:
. Net debt fell by £3.7 million from £265.9 million to £262.2 million.
. A 65pc plunge in pre-tax profits to £28.9m
. Group revenue is down by 2.9pc to £371.0 million
. Operating profit down by 23.7pc to £47.1 million
. Advertising revenue at the regional division fell by 10.4pc with circulation revenue down 5pc for the period
. Circulation revenues fell 5.4pc
. Digital revenues grew by 4.4pc with average monthly unique users across Trinity Mirror’s website portfolio for the period up by 28pc year on year.
. Advertising revenue is down 11.1pc
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I love the ‘Sly Baily’ typo. An example of what happens when you get rid of subs – or ‘investing for growth’ as it’s called.
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For “technology led operating model” read: A handful of stressed and underpaid reporters providing all words and images for the print version and online, with a quick proof read/edit by a senior member of staff if there are any left.
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” ‘one of the most technologically advanced and operationally efficient newsrooms in Europe’ through a ‘technology led operating model’ that will drive operating efficiencies whilst enhancing multi-media capabilities.”
– or the could not sack employees who can write in plain English.
“Our focus on maximising profits in the short term through tight management of costs while investing for growth creates a good backdrop for shareholder value creation over time.”
– how does concentrating on short-term profits create shareholder value over time (i.e. in the long term)?
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So how many local titles/ jobs will be a direct result of this “cost-saving” initiative then?
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