Shares in Sunday Mirror publisher Trinity Mirror rose to their highest level in a year yesterday – as City analysts predict the phone-hacking crisis engulfing the News of the World will open up new ad revenues for its tabloid rival.
According to City analyst Alex De Groot the News of the World has annual ad sales of about £40m and the Sunday Mirror’s stand at between £15m and £20m.
The NoW phone-hacking scandal could see Sunday Mirror ad revenues rise to around £30m a year, according to De Groot.
The news comes as Lloyds Banking Group, Butlins, Halifax and Virgin Holidays followed Ford’s lead and suspended advertising with the newspaper.
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Trinity’s shares rose 7p, or 17 per cent, to 42.25p at the close of trading in London yesterday – its biggest jump since July 2010. This gives the company a market value of £126.9m.
News Corporation – the parent company of News International – saw shares drop 85 cents, or 4.7 per cent, to $17.28 in Nasdaq Stock Market trading.
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