According to Trinity Mirror:
Key Highlights
Performance for the first half has been ahead of our expectations, with improved revenue trends and continued momentum in growing our digital audience. This, combined with the benefit of a fall in newsprint prices in the second half, provides the Board with confidence that performance for the full year will be marginally ahead of expectations.
• Continued improvement in revenue trends
Revenue fell by 2.3% year on year with a gradual improvement in trends as we progressed through the first half with May and June declining by only 1.4% year on year.
• Accelerating growth in digital audience and revenue
Average monthly unique users grew by 91% year on year to 61.3 million and average monthly page views grew by 132% year on year to 440.2 million across our publishing operations with publishing digital revenue growing by almost 50%.
• Profit before tax of £48.2 million, down 2.2%, with earnings per share up 0.6% to 15.5 pence
Profit before tax fell by 2.2% as we increased investment and absorbed an increase in newsprint prices. Earnings per share grew marginally as we benefited from the fall in the rate of corporation tax.
• Strong cash flows enabling net debt to fall to £56.0 million
Net debt has fallen to £56.0 million with the £44.2 million debt maturing in June 2014 paid from operating cash flow.
• Exceptional gain of £27.5 million from the disposal of MeteoGroup by PA Group
The disposal of MeteoGroup was completed by PA Group during March 2014 and we received a dividend of £12.9 million in July 2014 with a further dividend anticipated in 2015.
• Strategy remains on track
Good progress continues on delivery of our strategic initiatives with reduced rates of decline in print revenues, continued tight management of the cost base with structural cost savings of at least £10 million for the year and increased investment in digital which is driving strong growth in digital audience and revenues.
• Increased financial flexibility provides confidence to reinstate dividends at the year end
We have today announced the Board’s intention to recommend a final dividend for 2014 of 3 pence per share which would be payable in June 2015. At this stage the Board expects paying annual dividends of some 5 pence per share from 2015.
Commenting on the interim results for 2014, Simon Fox, Chief Executive, Trinity Mirror plc, said: “The Group continues to make good progress with the delivery of our strategic initiatives as clearly demonstrated in the performance for the first half of 2014. This momentum gives the Board confidence that our performance for the year will be marginally ahead of expectations. The strengthened financial position of the business together with continued strong cash flows also support the Board’s intention to reinstate dividends at the end of this year. This will be the first dividend paid by the Group since 2008.”
