LONDON (Brand Republic) - UK newspaper publishing group Trinity Mirror is considering a strategic rethink of its business, in a bid to reassure shareholders, which could lead to the sale of its UK ISP ic24.
The company, created nearly 18 months ago out of the merger between regional newspaper group Trinity and the Mirror Group, has seen its share price fall 19% since its creation and 31% over the last 12 months.
Earlier this month Jill Playle, marketing director for Trinity Mirror Digital''s ICNetwork, departed following a refocus of the group''s digital strategy.
Trinity Mirror indicated then that it was to switch from driving sales to ic24 to developing its consumer portals. These include the show business site icShowbiz, which recently launched a TV ad campaign.
Trinity Mirror had said it was to invest £150m in new-media projects over the next three years, but indications are this will be scaled back.
The group’s performance, which is trailing its sector by 34%, is inciting worries among investors that the deal might not have increased shareholder value.
Analysts say that the transition from the two companies to one large UK newspaper publisher wasted more than a year because of wrangling at management level.
Tension was caused when Philip Graf, head of the smaller Trinity, was given the top position over his Mirror counterpart, John Allwood.
Graf is also said to have suffered a sharp six-month learning curve when he moved to London from Trinity’s headquarters in Chester. Since he took over his new post, investor confidence has been shaken by a number of problems.
First was a lengthy inquiry by auditors when accounting irregularities were found at a newspaper in Birmingham. This was followed by the scandal surrounding share tipping at The Mirror and, thirdly, a downturn in internet and media stocks added to investors’ concerns.
The review’s preliminary findings are expected to be reported to the Trinity Mirror board ahead of its results on March 15.
www.ic24.com
www.icshowbiz.com