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Trinity "on target" for £32m cost saving

The regional newspaper arm of Trinity Mirror was one of the company’s strengths as half-year profits fell slightly on last year.

Pre-tax profits were down to £78.4m from £80.6m.

Advertising revenue among the regionals was down just 2.2 per cent, to £202.9m, while the national titles suffered more with an 8.2 per cent fall.

Trinity’s regionals include the Liverpool Post & Echo, Newcastle Chronicle and Journal, Middlesbrough Evening Gazette, the Western Mail & Echo, Birmingham Post & Mail and the Huddersfield Examiner.

The group has been cutting costs, with the regional business’s implementation of the “from Biggest to Best” strategy, as well as cost reduction plans in regional newspaper operations. This has resulted in £6.5m of “structural cost benefits” and £6.6m in revenue enhancements.

Other initiatives across the group have cut £14.6m in costs and the company is on target to achieve £32m in the full year

Company chairman Sir Victor Blank said: “In the first six months of the year, against a backdrop of difficult economic conditions, we have further demonstrated the strength of our businesses.

“The regional newspapers’ “from Biggest to Best” strategy continues to exceed expectations and management has identified further benefits beyond those originally planned. Our national strategy still in its early stages is progressing as expected with the improvements in the quality of our main titles, and strengthening of our brand and promotional activity to increase readership.

“The immediate future of the marketplace remains uncertain. However, we continue the successful implementation of the group’s strategy and this underpins the Board’s expectation of a satisfactory outcome for the year.”

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