According to Trinity Mirror:
Key Highlights
* Increase in adjusted operating profit, profit before tax and earnings per share
Adjusted operating profit grew by 3.9%, adjusted profit before tax grew by 5.1% and adjusted earnings per share grew by 3.4% as a result of strong cost control including structural cost savings of £20 million. Group revenue fell by 6.9% with underlying revenue falling by 7.8%. Underlying publishing digital revenue grew by 21.9% and underlying publishing print revenue fell by 9.5%.
* Continued growth in digital audience and revenue
Excluding Local World, average monthly unique users and average monthly page views grew year on year by 34% to 98 million and by 42% to 725 million respectively. Underlying publishing digital revenue grew by 21.9% with display advertising and other revenue growing by 32.6% and 38.5% respectively partially offset by classified advertising falling by 3.8%.
* Acquisition of Local World
The Group completed the acquisition of the 80.02% of Local World not previously owned on 13 November 2015 at an implied enterprise value for 100% of £220 million. Local World revenue and adjusted operating profit for the full year 2015 were £208.2 million and £41.4 million respectively. The Board has also concluded not to proceed with the on sale of certain titles of Local World which was announced at the time of the acquisition.
* Provision for dealing with historical legal issues
Provision charged in the year of £29 million in relation to the civil claims arising from phone hacking. Criminal investigations against journalists and the Group’s subsidiary, MGN Limited, have ceased.
* Strong cash generation
Strong net cash inflows of £63.8 million before net cash payments relating to the acquisition of Local World of £137.4 million. Net debt increased by £73.6 million to £92.9 million.
* Board proposes a final dividend of 3.15 pence per share
A final dividend of 3.15 pence per share is proposed bringing the total dividend for 2015 to 5.15 pence per share (2014: final dividend of 3.00 pence per share).
* Strategy remains on track and good progress is being made on integration of Local World
Our strategy remains to grow digital audience and revenue whilst protecting print revenue and supporting profits through the tight management of the cost base. In addition we are making good progress with the integration of Local World. We have targeted structural cost savings of £15 million, including synergy savings, in 2016.
Commenting on the annual results for 2015, Simon Fox, Chief Executive, Trinity Mirror plc, said: “I am pleased with the profit growth we delivered in 2015 despite the challenging print environment.
Our significant efforts on improving our balance sheet over the past three years enabled the transformational acquisition of Local World. We are delighted to welcome the Local World team to Trinity Mirror and are making good progress with the integration of the two companies and finding opportunities to benefit from best practice.
Whilst we expect print markets to remain difficult in 2016, the continued implementation of our strategy gives the Board confidence in our performance for the year ahead.
We have today launched, The New Day. It is an exciting and innovative initiative which we believe fills a gap in the market for a daily newspaper designed to co-exist in a digital age.”
