National and regional newspaper publisher Trinity Mirror has recorded a dip in both revenue and profit for the first six months of this year.
Operating profit is down 23.7 per cent to £47.1m on revenue down 2.9 per cent to £371m, the company reported today.
The company also announced today that it had increased its annual cost savings target by £10m to £25m for 2011, a move which could mean more job cuts across the group.
Net debt for the group fell by £3.7m in the period to £262.2m after £33m was paid to plug the pension deficit. That deficit was said to have fallen by £43.6m to £73.9m.
Chief executive Sly Bailey said: “While the economic environment remains difficult we have undertaken a series of actions to limit the impact on operating profit. The roll out of our technology led operating model continues to deliver efficiencies and today we have announced an increase in our 2011 cost savings target to £25 million. At the same time we’re investing across the group to diversify and grow revenues.
“Following changes to the national Sunday newspaper market we are highly encouraged by the considerable circulation volume growth seen by our national Sunday titles. Our focus on maximising profits in the short term through tight management of costs while investing for growth creates a good backdrop for shareholder value creation over time.”
Excluding the effect of buying MEN Media – digital revenues were slightly up by 0.6 per cent year on year to £17.6m the company said.
Overall group revenue for the period comprimsed: £168.9m in advertising (down from £176m in 2010); £154.7m from circulation (£161.4m) and £47.4m from other sources (£44.8m).
Trinity Mirror’s portfolio of 150 regional newspapers reported operating profit down 36.3 per cent to £18.4m for the period on revenue down 1.8 per cent to £149.1m.
Trinity Mirror’s national newspapers division – comprising the Mirror titles, People, Daily Record and Sunday Mail – reported operating profit down 14.4 per cent to £33.8m on turnover down 6.8 per cent to £204.9m.