Trinity Mirror sets aside another £7.5m to settle phone-hacking claims
RAVENDER SEMBHY
TRINITY Mirror has set aside an additional £7.5 million to settle phone-hacking allegations.
The latest provision means that the newspaper publisher has put aside a total of £60m to cover costs relating to the scandal, which includes damages payouts and legal fees.
But Trinity also disclosed that it has secured a fiveyear contract to print the Guardian’s newspapers
Trinity said it has settled more than 80 per cent of the hacking claims, but “the lengthy process of settling claims and the structure and quantum of legal fees for the claimants” has required the provision to be increased.
The group has signed a five-year print and distribution deal for the Guardian and Observer newspapers from early 2018. The announcements were made alongside a trading update for the 26 weeks to July 2 in which Trinity said revenue is expected to fall by nine per cent on a like-for-like basis.
advertising and circulation revenue fell by 21 per cent and six per cent respectively over the period, although Trinity said the decline was impacted by strong comparatives last year when the European Championship took place.
Chief executive Simon Fox said: “The trading environment for print in the first half remained volatile but we remain on course to meet our expectations for the year. I anticipate that the second half will show improving revenue momentum as we benefit from initiatives implemented during the first half of the year.”
The company said yesterday that it has acquired 6.6 million shares for £6.8m as part of a £10m share buyback announced in August, and paid £7.5m into its pensions relating to the programme.
Shares in Trinity Mirror closed up 3.25p at 98.25p.