Trinity Mirror makes operating profit from MEN

Trinity Mirror has generated a 拢2.7m operating profit from the Manchester Evening News and its sister titles in around three months, the company's financial figures have revealed.

Sly Bailey: chief executive of Trinity Mirror
Sly Bailey: chief executive of Trinity Mirror

Trinity Mirror purchased the regional titles from the Guardian Media Group (GMG) in March and they have to date contributed revenues of £18.2m and an operating profit of £2.7m to the group.

Overall, the group, headed by chief executive Sly Bailey, disclosed that the company was still dealing with a "fragile economy" and "volatile trading conditions", which impacted on its advertising revenue.

Bailey said she remained "cautious", but "confident of delivering a robust performance for the full year, driven by stabilising revenues and continued cost efficiencies."

Pre-tax profits were up from £31.3m to £50.4m year on year in the 26 weeks to 4 July. Revenues across the group were slightly down, from £383m to £382.2m in the period.

Advertising revenues at Trinity's Mirror's national division, which houses the Daily Mirror and The People, increased 2.2%, from £64.4m to £65.8m. Revenue at the division was down from £227.6m to £219.8m.

Across its regionial division, excluding GMG regional media, revenues fell from £139.2m to £129m. Digital revenues at the unit fell from £16.2m to £15.2m.

Commenting on the acquisition of , Bailey said: "The acquisition of GMG Regional Media was a clear demonstration of our ability to lead consolidation in regional media in a way that adds substantial value for shareholders."

The deal included a £7.4m cash sum and the cancellation of a £37.4m printing contract.

Total costs at Trinity Mirror, excluding the GMG titles, were reduced by £29m.

Bailey said: "We have continued to invest in the business through the downturn, in strengthening the portfolio and delivering IT led efficiencies, in addition to maintaining a keen focus on costs. We are now reaping the benefits of these actions, with profits increasing and slowing rates of decline in underlying revenues."

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