According to Trinity Mirror:
Key Highlights
Whilst market conditions for print advertising have remained challenging in the first half, we have seen continued growth in digital revenue. With tight management of the cost base, including targeted structural cost savings of £20 million, the Board remains confident that profits for the full year will be in line with expectations.
• Continued strong growth in digital audience and revenue Digital continued to perform strongly during the first half, with average monthly unique users and average monthly page views growing by 55% and 59% respectively. Publishing digital revenue grew by 27% with Publishing digital display advertising revenue growing by 44%.
• Adjusted profit before tax down 2.5% to £47.0 million with adjusted earnings per share down 1.3% to 15.3 pence Despite a decline of 8.7% or £27.6 million in underlying revenue, tight management of the cost base limited the decline in adjusted profit before tax to only 2.5% or £1.2 million with adjusted earnings per share down marginally by 1.3% to 15.3 pence. The fall in statutory profit before tax primarily reflects the non-recurring gain of £27.5 million in associates in the first half of 2014 and the previously announced increase of £16.0 million (2014: increase of £4 million) in the provision for historical issues in relation to phone hacking. Excluding the year on year impact of these two items, statutory profit before tax increased by £1.1 million.
• Robust balance sheet and financial flexibility with net cash position of £23.9 million A continued focus on delivering strong cash generation together with the benefit of £16.3 million of dividends from associates left the Group with a net cash position of £23.9 million as at 28 June 2015, compared to net debt of £19.3 million at the end of 2014. The strong balance sheet position provides the Group with the financial flexibility to pay dividends and pursue investment opportunities alongside appropriately funding pension scheme liabilities.
• Board approves an interim dividend of 2 pence per ordinary share The Board has approved an interim dividend for 2015 of 2 pence per ordinary share, payable on 30 November 2015.
• Strategy remains on track Although the trading environment remains challenging, the Board remains confident that the strategy will deliver growth over the medium term.
Commenting on the interim results for 2015, Simon Fox, Chief Executive, Trinity Mirror plc, said: “The print advertising environment has been more challenging than anticipated in the first half. As a result, whilst continuing to invest in people and technology to drive the ongoing growth in digital audience and revenue, we have taken further action to address our print cost base. The strong cash generative nature of the business has enabled us to continue to strengthen our balance sheet, to the extent that the Group had a net cash position for the first time in its history at the end of the half year. At the same time we continue to make the agreed pension contributions whilst paying an interim dividend of 2 pence per share.
I remain confident that our strategy will deliver sustainable growth in revenue and profit over the medium term despite the difficult print advertising market conditions. The actions we are taking in support of both our print and digital products provide the Board with confidence that profits for 2015 will be in line with expectations.”
