According to Trinity Mirror plc:
Outlook
Although the trading environment remains challenging, at this stage, the Board anticipates that our interim and full year results will be in line with our expectations.
We continue to make progress with our strategy of growing digital display and transactional revenue whilst at the same time tightly managing our cost base to support profits and cash flow with net debt falling in the period.
Revenue trends
Group revenue is expected to fall by 9% on a like for like basis over the period.
Publishing revenue is expected to fall by 10%, with print declining by 12% partially offset by digital which grew by 5%. Publishing print advertising and circulation revenue fell by 21% and 6% respectively over the period, although the advertising decline was affected by our strong performance over the European Championship in 2016. We continue to deliver strong growth in digital audience which enabled digital display and transactional revenue to grow by 18%.
£10 million share buyback
Since announcing our £10 million share buyback programme in August 2016, the Group has acquired 6.6 million shares for £6.8 million and has paid £7.5 million to the pension schemes relating to the share buyback programme.
Print and distribution contract
During the period, the Group secured a five year print and distribution contract for the Guardian and Observer newspapers from early 2018.
Historical Legal Issues
We have continued to make progress on the settlement of civil claims in relation to phone hacking with damages for over 80% of claims settled. However, the lengthy process of settling claims and the structure and quantum of legal fees for the claimants has required the provision for settling these matters to be increased by £7.5 million.
Although there remains uncertainty as to how these matters will progress, the Board remains confident that the exposures arising from these historical events are manageable and do not undermine the delivery of the Group's strategy.
Simon Fox, Chief Executive, commented: "The trading environment for print in the first half remained volatile but we remain on course to meet our expectations for the year. I anticipate that the second half will show improving revenue momentum as we benefit from initiatives implemented during the first half of the year."
