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UPDATE 1-Trinity Mirror, like peers, feels the pinch of lower ad spend
December 16, 2016 / 8:14 AM / 9 months ago

UPDATE 1-Trinity Mirror, like peers, feels the pinch of lower ad spend

(Adds details, context, share movement)

Dec 16 (Reuters) - British newspaper publisher Trinity Mirror said it expected print advertising revenue to fall 17 percent in the final quarter, underscoring financial pressures on newspapers and digital media.

The company said, however, its full-year performance would be marginally ahead of expectations, with net debt falling to about 35 million pounds, significantly better than expected.

Trinity’s shares rose 6 percent to 89 pence at 0806 GMT on the London Stock Exchange.

The company joined other British newspapers including the Daily Mail in highlighting a decline print and circulation revenue and volatility in the advertising market.

Industry experts had said in July that uncertainty linked to Britain’s decision to leave the European Union could further dent newspaper advertising revenues as companies defer spending.

However, an industry forecast for advertising spending growth has since been revised up to 1.9 percent for 2016, compared with a previous forecast of a 0.2 percent decline, according to the IPA Bellwether report, published by IHS Markit on behalf of the Institute of Practitioners in Advertising.

Trinity Mirror, which publishes the Daily Mirror and Sunday Mirror, said on Friday that like-for-like group revenue is expected to fall by less than 8 percent in the final quarter, compared to a 9 percent decline in the previous quarter.

While publishing revenue is expected to fall by 8 percent, with print revenue being 10 percent lower, digital revenue would prove a bright spot by rising 8 percent.

Trinity Mirror, which has to compensate people who had their phones hacked by staff working for the newspaper group, said damages for over 80 percent of the civil claims had been settled.

The company, however, increased the provision set aside for the claims by 11.5 million pounds ($14.31 million).

$1 = 0.8036 pounds Reporting by Noor Zainab Hussain in Bengaluru; Editing by Amrutha Gayathri

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