Trinity pays first dividend since 2008

LONDON: British newspaper publisher Trinity Mirror Plc will pay its first dividend since 2008 after tight cost controls and growing digital sales helped it post a slight rise in full-year earnings.

Trinity, which has been battling falling circulation and lower advertising rates at its Daily Mirror and Sunday Mirror titles, said yesterday that it would pay a final dividend of three pence per share and planned to increase that to five pence in 2015.

Trinity said trading had remained tough, however, with cuts to advertising budgets by the country’s biggest supermarkets pushing its print ad revenue down by 14.1% in the second half, compared with a decline of 8.8% in the first half.

Digital revenue by contrast grew by almost 50%, helped by the higher rates charged for online video ads, but at only 6% of total publishing revenue, the fall in print sales had a greater impact.

Trinity, whose titles also include the Daily Record, the People and regional titles such as the Liverpool Echo and the Manchester Evening News, said tight cost control had helped to grow adjusted profit before tax by 1% to £102.3 million ($158 million), on revenue that fell 4.1%, compared with a 2013 decline of 6%.

Chief executive Simon Fox told reporters the group had witnessed falling advertising spend from supermarkets for around four months and it was difficult to say when it would rebound.

“We are hopeful that we will see that bounce back, but for the moment, while they remain very significant advertisers, they’re spending less than they were,” he said.

With print advertising remaining volatile, Fox said the group would continue to manage its cost base in line with falling revenue.

He said he would at least expect print revenue to grow in the second half of 2015, against the weak comparable.

Trinity foresaw its 2015 performance in line with expectations, with analysts anticipating a continued deterioration in revenue but a slight pick-up in pre-tax profit.

Shares in the group were up 1.4% in early trades, valuing it at £527 million and adding to the 26% increase it has recorded since the beginning of this year.