Final Results - Year Ended 2 Jan 2000, Part 1
Trinity Mirror PLC
17 March 2000
Part 1
An Encouraging Start
Trinity Mirror plc - Preliminary Results 1999
Trinity Mirror plc ('Trinity Mirror'), the UK's largest newspaper publisher,
announces its first results since the merger in September 1999 of Trinity plc
('Trinity') and Mirror Group PLC ('Mirror Group').
Highlights
- Turnover from continuing activities increased by 4% to £1,053m*
- Profit before exceptional items and tax increased by 14% to £168m*
- Earnings per share (before exceptional items) increased 18% to 42.6p*
- Dividend per share increased 10% to 16p
- Major commitment to Group's internet strategy -up to £150m investment over
next 3 years
- Strengthened management team across the Group
* figures are on a pro forma basis - subject of separate review report from
external auditors
Commenting on the merger and the Group's results, Philip Graf, Trinity
Mirror's Chief Executive, said:
'The Group's performance for the year was encouraging and provides a robust
base from which the merged Group can grow. Since the merger, we have continued
to invest in building our national and regional businesses and have taken
decisive management action in those businesses that did not meet expectations
during 1999. Consequently, prospects for our national and regional titles
have improved and we have had a good start to trading in 2000.
We are entering a very exciting period for the Group. Trinity Mirror's strong
network of established brands provides us with a tremendous opportunity to
take a prominent position in new media and over the next three years we plan
to invest up to £150m as we continue to implement and develop our new media
and internet strategy.
Our objective is to create the UK's leading 'local portal', seamlessly
integrating superior national and local content, and to turn the traffic this
content generates into substantial revenues. We will leverage all of our
assets in newspapers and new media to become a critical component of local and
common interest communities.'
Enquiries:
Philip Graf/Margaret Ewing/Nick Fullagar Tel: 0207 293 3000
Trinity Mirror plc
Rupert Younger/James Leviton (Media)
Justine Samuel/Katie Evans (Investors) Tel: 0207 251 3801
Finsbury
A presentation for analysts will be held today at 9:30am at: Warburg Dillon
Read, Presentation Centre (Ground Floor), 1 Finsbury Avenue, London EC2M 2PP
Financial highlights
Results
Statutory basis
Results for the period ended 2 January 2000 ('1999')
Pre-exceptionals Post exceptionals
1999 1998 % change 1999 1998 % change
Turnover (1) £594m £321m 85% £594m £321m 85%
Group operating £136m £78m 74% £128m £74m 73%
profit (1)
Profit before tax £116m £73m 59% £104m £84m 24%
Earnings per share 45.5p 35.9p 27% 40.6p 45.4p (11%)
Dividend per share 16.0p 14.5p 10% 16.0p 14.5p 10%
(1) excluding discontinued activities
The statutory profit and loss account for 1999 includes the former Trinity
group's results for the 53 weeks ended 2 January 2000 and those of the former
Mirror Group from 6 September to 2 January 2000. 1998 represents the results
of Trinity plc only.
Earnings per share, pre exceptional items, increased by 27% to 45.5p (1998:
35.9p). The effect of the post tax exceptional charge of £9m in 1999 (and
gain of £13m in 1998) reduced the basic earnings per share by 11% to 40.6p
(1998: 45.4p).
Turnover from continuing activities increased by 85% from £321m in 1998 to
£594m, reflecting the inclusion of the former Mirror Group's turnover of £254m
for the post merger period, which is a seasonally strong period for the
national titles, and an increase of £19m (6%) in turnover for the ongoing
former Trinity business.
Pre-exceptional Group operating profit from continuing activities increased by
74% to £136m (1998: £78m) with the former Mirror Group contributing £52m. The
Group operating profit in 1999 benefited from a £3m credit adjustment arising
from the provisional allocation of fair values to the net assets (primarily
fixed assets and pension provisions) of the former Mirror Group at 6 September
1999. The future annual credit to profit, derived from the amortisation of
certain of the fair value adjustments, is £9m.
Profit before tax and exceptional items increased by 59 % to £116m (1998:
£73m).
The exceptional net charge (before tax) of £12m in 1999 comprised £8m of
restructuring costs and £5m net costs of closing Live TV, offset by a share of
£1m in the exceptional profits of the Group's associate, The Press
Association.
Pro forma basis
To provide a meaningful analysis of the trading results of the merged Group,
in addition to the statutory consolidated financial information highlighted
above, the profit and loss accounts for 1998 and 1999 are presented on a pro
forma basis.
The pro forma information has been prepared on the assumption that the merger
had become effective at the beginning of each of the relevant accounting
periods rather than 6 September 1999, the actual date of the merger. This
provides a comparison of 1998 and 1999's results for the combination of
Trinity and Mirror Group without the complication of having to account, during
the period of review, for the implications of the merger.
The analysis and discussion of the Group's profits provided below are on the
basis of the pro forma results. These have been the subject of a separate
review and report by the Group's external auditors.
Results for the period ended 2 January 2000 ('1999')
Pre exceptionals Post exceptionals
1999(1) 1998 % change 1999(1) 1998 % change
Turnover(2) £1,053m £1,008m 4% £1,053m £1,008m 4%
Group operating £225m £226m (0.4%) £215m £222m (3%)
profit (2)
Profit before tax(3) £168m £148m 14% £181m £146m 24%
Earnings per 42.6p 36.1p 18% 48.8p 36.1p 35%
share(3)
Dividend per 16.0p 14.5p 10% 16.0p 14.5p 10%
share(3)
(1) former Trinity businesses 53 weeks (1998: 52 weeks), former Mirror Group
businesses 52 weeks (1998: 53 weeks)
(2) excluding discontinued activities
(3) including £9m annual credit arising from amortisation of provisional
fair value adjustments
Earnings per share, before exceptional items, increased by 18% to 42.6p (1998:
36.1p). Basic earnings per share were 48.8p (1998: 36.1p).
Turnover from continuing activities increased by 4% to £1,053m (1998:
£1,008m).
Group operating profit from continuing activities was £225m (1998: £226m).
Adjusted for £6m new media investment in 1999 (1998: £nil), Group operating
profit was £231m (1998: £226m), an increase of 2%, resulting in a Group
operating margin on continuing activities of 22% (1998: 22%).
Good profit growth was achieved by most of the Group's operating businesses.
However, the performance of the Midland and Liverpool regional operations and
the Scottish national newspaper operation was disappointing with a total
decline in profits from these three businesses of £9m. Adjusting for this
decline in profits (assuming no increase or decrease over 1998) and new media
spend, the Group would have achieved a 6% increase in operating profit from
continuing activities.
Profit before tax and exceptional items increased by 14% to £168m (1998:
£148m). This increase was primarily the result of a £25m reduction in the
Group's pro forma interest charge (before exceptional financing costs). The
31% reduction in the interest charge is principally due to the 1.9% decrease
in the Group's average cost of funds and the repayment of debt using proceeds
from disposal of the Group's investment in Scottish Media Group and the former
Mirror Group head office in Holborn, London. Pro forma interest cover, before
exceptional items, was 4.0 times (1998: 2.8 times).
Pre-exceptional EBITDA (earnings before interest, tax, depreciation and
amortisation) from continuing activities decreased to £272m (1998: £275m).
Adjusted to eliminate the share of results of associated undertakings £3m
(1998: £8m, including the share of profits from Scottish Media Group) and £6m
new media investment in 1999, pre exceptional EBITDA in 1999 is £275m (1998:
£267m), an increase of 3%.
Net exceptional items amounted to a credit of £13m before related tax credits
of £5m (1998: net charge pre tax £2m, tax credit £2m). Operating exceptional
charges of £10m (1998: £4m) related primarily to redundancies and
restructuring costs arising from the merger.
Pro forma capital expenditure in the period was £47m (1998: £45m) against a
depreciation and amortisation charge of £48m (1998: £46m). Capital expenditure
in 1999 included the development of the Anderston Quay site in Glasgow, which
is due to complete shortly. Planned capital expenditure for 2000 is £56m
(including £5m of new media capital expenditure). This will be financed out
of operating cash flows.
Balance sheet
Intangible assets of £1,768m reflect the carrying value of the Group's
newspaper titles of £1,757m and goodwill of £11m.
In accordance with FRS 10 'Goodwill and Intangible Assets', the Group's
newspaper titles are subject to annual impairment reviews as the directors
consider them to have indefinite economic lives. Any permanent diminution in
value is charged to the profit and loss account. There is no charge in 1999
or 1998.
Creditors due within one year include a £19m accrual (primarily goodwill
payments to advertisers) related to the circulation irregularities in
Birmingham which were identified and reported on in November 1999.
The increase in provisions during the year principally relate to provisional
fair value adjustments in respect of pensions and properties following the
merger (accounted for as an acquisition of Mirror Group by Trinity).
Cash flow and net debt
Net debt rose during the financial year from £66m to £779m at 2 January 2000.
£350m of the increase is in respect of debt financing for the merger with
Mirror Group, with a further £350m of Mirror Group debt assumed at the time of
the merger. On a statutory basis, net cash generation for the period was £50m
(1998: £21m), after the payment of interest of £26m, taxation of £53m, net
capital expenditure of £35m and dividends of £28m. The Group's level of
gearing at 2 January 2000 was 61% and pro forma interest cover was 4.0 times.
Dividend
Subject to the approval of the shareholders at the Annual General Meeting, the
directors propose a final dividend of 11.2p per share to be paid on 31 May
2000 to shareholders on the register at 2 May 2000, bringing the full year
dividend to 16.0p, an increase of 10.3 % on 1998.
The Group's future dividend policy will take into account the Group's
operating results, financing requirements and the investment needs of its
constituent businesses.
Integration benefits
The Group is on track to achieve a minimum of £15m annual cost savings by
2002, as identified at the time of the merger. Profits in the financial year
2000 will benefit from those integration projects that have been initiated,
including purchasing synergies on newsprint, ink, plates and film, and the
rationalisation of resources.
On an annualised basis the Group anticipates achieving at least two thirds of
its target cost savings by the end of the current financial year. In
addition, the Group continues to seek opportunities to achieve revenue
enhancement as a result of the merger.
Review of operations
Across the Group all operating divisions achieved revenue growth in 1999. The
national and sports newspapers and magazine and exhibitions divisions also
realised profit growth (4% and 14% respectively). The regional and Scottish
national newspapers division's operating profit marginally declined 1% in 1999
with disappointing performances from the Scottish national, Midland and
Liverpool regional newspaper operations offsetting very good revenue and
profit performances from all other regional businesses.
Appropriate management action has been taken within the under-performing
operations and the Group is now in a position to benefit from opportunities
identified to improve the performance of these businesses and to face the
challenges ahead.
Pro forma turnover (2) Pro forma Group operating
profit (1)(2)
1999 1998 % 1999 1998 %
£m £m change £m £m change
National and
sports 425 418 2 84 81 4
newspapers
Regional and
Scottish 581 554 5 138 139 (1)
national
newspapers
Magazines and 34 30 13 8 7 14
exhibitions
New media and
interactive 3 2 50 (6) - -
services
Other 10 4 150 1 (1) -
1,053 1,008 4 225 226 -
(1) before exceptional items
(2) excluding discontinued activities
The Group's circulation revenue increased by 1% to £393m (1998: £390m).
Advertising revenues rose by 3% to £558m (1998: £540m) and other revenues
(excluding discontinued activities) increased by 31% to £102m (1998: £78m).
National and sports newspapers
The division's 1999 operating performance was encouraging with sales and
operating profit up 2% and 4% respectively (despite 1998 being a 53 week
period compared to 52 weeks in 1999 for these businesses) and the benefit of
the investment programme in The Mirror now reaping rewards.
Pro forma %
Revenues £m £m change
Nationals
circulation 217 219 (1)
advertising 152 148 3
other 32 28 14
401 395 2
Sports 24 23 4
Total turnover 425 418 2
Operating profit
(before 84 81 4
exceptional items)
Nationals
The Mirror
Amongst the Group's national titles the strong performance of The Mirror has
been the year's highlight. The Mirror has achieved its most stable level of
sales for over 10 years, with an ABC sale of 2,314,000 (a fall of only 0.6% on
a year-for-year basis compared to 1998), and performed ahead of the market,
increasing its popular market share to 35.5% (1998: 35.1%). Circulation
revenues increased, year-on-year, by £2m (1%) as a result of price increases
on both Monday to Friday and Saturday introduced in the second half of 1999.
Advertising revenues rose by 7% primarily as a result of retailers'
expenditure on price programmes within the grocery sector, increased
expenditure from the computer retail business and growth in other categories.
The Mirror has realised operating profit growth of 3% in 1999. This has been
achieved through continued investment and a commitment to improved, populist
editorial. In October 1999, The Mirror launched M, a glossy magazine for
women. This magazine, published free with the paper on Tuesdays, has been well
received by readers and advertisers alike, delivering a route to market for
female-oriented advertisers who might not usually consider The Mirror a
relevant medium.
Further investment during the year has included the introduction in May 1999
of a Welsh edition, which follows the success of the Group's regional editions
for the Scottish and Irish markets.
Sunday newspapers
The strategy of aligning the Sunday Mirror with the marketing and editorial
approach of The Mirror has proved a success in a mature market. Circulation
levels have remained stable during the second half of the year against an 11%
decline in 1998 and year-on-year market growth has been achieved.
Advertising revenues were down 4%, largely due to reduced expenditure by the
major mail order advertisers.
The Sunday Mirror publication is committed to quality editorial and, with its
broader consumer appeal, includes features on personal finance and health plus
additional foreign news. The quality and appeal of the Sunday Mirror
magazine, 'Personal', has also been improved and focused at the female
audience within the Sunday Mirror's readership.
The refocusing and clearer positioning of the Sunday People has helped to
level out readership despite a 5 pence increase in cover price mid-year. ABC
sales were down 7.4% to 1.6m, year on year. Despite this, circulation
revenues increased by 5% due to the cover price rise and, although advertising
revenues fell by £2m (10%), profit increased.
Sports newspapers
The Racing Post and its sister title, Weekender, achieved growth in both
circulation and advertising revenues.
The Group has continued to invest in its sports publications, acquiring
Raceform in October 1999 - publisher of 3 weekly horseracing and sports
betting newspapers and the Official Form Book. This acquisition has
strengthened the Group's core sports betting information proposition - which
is to deliver the most comprehensive and up-to-date racing and sports betting
information. Raceform and the Racing Post have together succeeded in
increasing the total market for such newspapers on Saturdays. The acquisition
of Raceform has significantly increased the Group's sports newspapers
database.
The continued growth and interest in general sports betting provides an
excellent opportunity to broaden the appeal of the Racing Post brand and
secure new readers. The Group is looking, therefore, at further ways in which
it can leverage its sports business and resources to improve sports coverage
across the Group.
Regional and Scottish national newspapers
Pro forma
1999 1998 %
£m £m change
Revenues
Regionals
circulation 94 91 3
advertising
display 111 107 4
classified 220 214 3
331 321 3
contract printing 16 14 14
other income 23 18 28
Regionals' 464 444 5
turnover
Scottish nationals
circulation 59 60 (2)
advertising 50 48 4
other 8 2
Scottish nationals' 117 110 6
turnover
Total turnover 581 554 5
Operating profit
(before exceptional 138 139 (1)
items)
Regional newspapers
Overall, the Group's regional papers have experienced favourable market
conditions. However, the revenue and profit growth of the division was
hindered by the weak performance of the Midland and Liverpool operations.
Local management, trading, circulation and operational problems were
experienced in the Midlands, prior to new management being appointed in the
last quarter of 1999. A difficult local economic environment, rising costs
and systems installation problems resulted in a 5% fall in operating profit
for Liverpool. Management changes have recently been made to address these
issues.
Advertising
Advertising revenues in the second half of the year grew by 5%, ahead of that
reported in the first half (1%), with national display and recruitment
revenues recording growth of 7% and 10% during this period. Classified
revenues grew in total by 5% in the second half of the year (compared to the
same period in 1998) and by 2% for the year, with all categories ahead of last
year.
The Group's regional businesses in Scotland, Belfast, Cardiff, the North East
and the North West of England all reported double digit percentage increases
in recruitment advertising revenues during the second half of the year.
Motors advertising revenues were on a par with 1998, although there was a 1%
decline in the latter half of the year.
Property advertising revenues grew by 4% overall in 1999 with Belfast,
Newcastle and Chester reporting growth in excess of 12% during the second half
of 1999.
Other classified advertising revenues grew by 4% with revenues in the second
half also increasing by 4%. Entertainment and personal advertising were the
key areas contributing to the positive result.
Circulation
Circulation revenues grew by 3% in 1999, with the benefit of price increases
more than compensating for the underlying reduction in copies sold.
Excluding the effect of the Birmingham titles (due to the circulation
irregularities discovered, the titles in Birmingham have not been included in
the ABC audit), the regional morning titles circulation declined by 2% for the
year as a whole with the evening and Sunday titles down by 3% and 4%
respectively.
The Group's weekly titles continued to perform strongly with 31 out of 55
titles showing year on year circulation increases. Overall, the circulation
of the weekly titles was 0.5% below last year.
Other revenues
Other revenues, including contract printing and direct marketing, continue to
grow strongly. Contract printing revenues (41% of other revenues in 1999)
increased by 14% in 1999. Direct marketing and other non-publishing revenue
increased by 28% to £23m.
Operations
Wales
Trinity Mirror's success story in south Wales continued during 1999. For the
seventh successive year profits grew by more than 15% driven by the
outstanding record of the Western Mail & Echo management team. Total profits
for the region rose by 18%.
South of England
Stringent cost control measures and a major organisation change were
implemented by Trinity Newspapers Southern ('TNS') during 1999 as trading
conditions in the south initially proved difficult. These actions, combined
with improved local economies and good growth rates in advertising revenue
during the second six months, meant another record year with a growth of 20%
in operating profit.
Midlands
Following completion of the merger, the Group restructured its business in the
Midlands to address a number of management, circulation, operational and
trading issues which had led to a 15% fall in operating profit. This resulted
in the appointment of a new management team.
Current trading is encouraging. The circulation irregularities, discovered by
the new management team in November, appear not to have materially affected
ongoing advertising revenue.
Chester/Huddersfield
Despite slow local economic conditions in Chester and Huddersfield, revenue-
driven initiatives and careful cost control enabled the region to deliver
profit growth of 7% in 1999.
Liverpool
Notwithstanding difficult local external operating conditions, advertising
revenue grew by 2% overall in 1999, up 4% during the last six months. The
latter half of the year resulted in a 19% increase in employment advertising.
Circulation revenues declined slightly.
Throughout the year, the business was plagued by systems installation
difficulties. At the end of the year, a new management team was appointed and
an improvement in results is already evident.
The North East
The Group's two businesses in Newcastle and Teesside delivered strong profit
growth of 11% and 9% respectively, despite challenging operating conditions
during the first half of the year.
Cover price increases on all three daily titles during 1999 produced healthy
revenue growth. This was supported by good advertising growth in the second
half of the year, notably in employment (14%) and property (13%) in Newcastle
and in motors (9%), employment (18%) and certain retail categories in
Teesside.
Scotland
The new Scottish and Universal Newspapers management team, appointed at the
start of 1999, has had a very impressive first year with healthy profit growth
(10%) and 12 of the 17 titles showing circulation increases.
Ireland
The Belfast Telegraph and Sunday Life achieved advertising revenue growth of
10% and profit growth of 13% in 1999. The new TERA editorial system, which
offers integrated page layout facilities for editorial on the Belfast
Telegraph title, will become fully operational during 2000. This will result
in considerable savings.
Advertising reveneues declined by 9% at the News Letter. The Derry Journal
was acquired in October 1998. 1998, therefore, includes only 2.5 months
advertising revenue. Investment in improving editorial has continued at the
Sunday Business Post, Ireland's leading national business, political and
economic newspaper, and profits remained flat in 1999.
Metro newspapers
The Group has introduced Metro newspapers in Birmingham and Newcastle. These
publications present an opportunity for the Group to reach new and younger
audiences thereby creating additional advertising revenues. The Group will
continue to monitor the performance of its Metros and that of its competitors'
titles.
Scottish nationals
The Scottish national newspapers experienced fierce competition from cut-price
rivals during 1999 resulting in a profit decline of 10%. These newspapers
derive a higher revenue from circulation than from advertising and in 1999
circulation revenues fell by 2% and only represented 50% (1998: 54%) of total
income.
Display advertising growth of 4% was driven entirely from the local economy
with national display advertising revenues flat. The continued development of
the 'Road Record' platform in the Daily Record contributed to the significant
increase in motors advertising of 30%. Local advertising continues to build
strongly with revenue growth of 6% in 1999.
Magazines and exhibitions
The merger brought together Trinity's 'Mart' titles and the Mirror's
comprehensive range of business-to-business and specialist consumer magazines
and exhibitions. Acquisitions during the year have contributed significantly
to the 14% increase in operating profits and 12% uplift in overall advertising
revenue.
New media
The Group has today announced its major programme of investing up to £150
million over the next three years in continuing to implement and develop its
new media and internet strategy. The Group plans to develop the UK's leading
'portal', seamlessly integrating superior national and local content and to
turn the traffic that this content will generate into substantial revenue. In
addition, it will leverage all of its assets in newspapers and new media to
become a critical component of local and common interest communities
The Group's separate new media division is headed by David Clarke, previously
Managing Director of Virgin.Net, who reports directly to Philip Graf, Group
Chief Executive. The senior management of the division is primarily resourced
by previous Virgin.Net management, particularly in respect of content, finance
and sales, with other key personnel from within Trinity Mirror. Graham Mead
has recently been appointed as Managing Director, Regional New Media to manage
the implementation of the regional aspects of the Group's internet strategy.
The division currently employs approximately 100 staff, all of whom have
extensive experience in the fast growing on-line or media industries. The
Group's internet development plans require this number of staff to increase to
over 250 during the next 12 months.
The planned investment in 2000 is in respect of £44m of revenue expenditure
(primarily promotion and marketing, technology and staff costs), £5m of
capital expenditure and up to £3m further investment in existing joint
ventures such as Fish4 and PA Sporting Life. In addition to the £150m three
year investment, significant opportunities exist for marketing and cross
promotion within the Group's own national and local newspapers. The £150m
investment does not reflect the benefit of £7m anticipated revenue income in
2000 or future revenue income. The Group's objective is to significantly
increase revenue year-on-year.
The Group's existing new media assets, which include national websites, such
as The Mirror site, its revenue-driving central portal, ic24 and a series of
regional sites, based on the Group's local newspapers' content and expertise,
currently enjoy over 40 million page impressions a month. The largest sites
are the ic24 portal, Sporting Life and the Racing Post.
The ic24 central portal is core to the Group's internet strategy. This portal
will aggregate traffic from all the Group's sites into a series of revenue-
generating channels, as well as generating significant traffic in its own
right. Launched in April 1999, ic24 is already in the top five UK portals in
terms of advertising revenues.
Within the next twelve months, the Group plans to roll out 16 regional ic
portals in major regions. The Group's routes to market, access to local
content and existing status in local communities give it an excellent
competitive advantage in these areas.
ic24 is also an internet service provider ('ISP') and handles substantial
levels of web traffic: over 215,000 access customers and more than 12m page
impressions a month. As a result of its ISP services, Trinity Mirror is able
to profile its users and market to them on a one-to-one basis. The Group
believes that it currently has the best overall telephone/internet access
offering, as supported by the recent article in MMXI Europe and Internet
magazine (March 2000).
The Racing Post website was re-launched in October 1999 as a free-to-market
site, having previously been a subscription-only service. The move has
resulted in a significant increase in registered users from 1,200 to over
41,000 attracted by the credibility and independence of the Racing Post brand.
The site's e-commerce potential is illustrated by the rise in page impressions
achieved from 1m in October 1999 to the current level of over 8m per month.
The Group's plans for developing e-commerce include offering the facility for
visitors to interact directly with a number of major UK bookmakers. Visitors
will be able to compare the 'live odds' offered on a wide range of sporting
events and to place a bet in a matter of seconds with their preferred
bookmaker. Income to the Racing Post will be derived from a percentage of the
betting turnover generated and negotiations are at an advanced stage with a
number of leading bookmakers.
The Group is currently in discussions with a number of parties with the
intention of developing relevant partnerships with leading edge technology and
content providers to ensure the quality, depth and compatibility of its
services and to strengthen its position.
Strategy
The Group's strategic intent is to create a more broadly based leading media
and information company by organic growth, acquisition and developing
opportunities for expansion in new information markets.
The strong combination of Trinity Mirror's national and regional titles is
expected to continue to provide balanced revenues across future economic
cycles. The nature of the Group's franchises allows it to develop
opportunities, both nationally and regionally, in print and electronic form.
Acquisitions and disposals
As the largest newspaper publishing group in the UK, the Group's brands and
geographic reach provide an unparalleled strength and give it a particularly
strong base from which to develop both organically and through acquisition.
The enlarged Group is well placed to take advantage of the increasing
consolidation in the media industry. The Group's stated interest in the
regional newspaper publisher Newscom is a demonstration of its intention to
continue to participate in the consolidation of the regional press.
As a condition of the merger between Trinity and Mirror Group, the Secretary
of State for Trade and Industry required the Group to dispose of Belfast
Telegraph Newspapers Limited. The Group announced today that it had reached
agreement with Independent News & Media plc to sell Belfast Telegraph
Newspapers Limited for £300m. The transaction is subject to regulatory
approval.
The Board is also committed to exiting non-core activities and directing
investment to value-creating areas of the existing business and to suitable
acquisitions. This resulted in the closure in October of the Group's cable
television venture, Live TV.
People
On the merger of the two companies, a number of directors left the boards of
Trinity and Mirror Group. Leo Coligan and Louise Botting resigned from the
Trinity board. Steve Barber, Terry Connor, Lord Borrie and Alan Clements left
the Mirror board. Subsequently, Cornel Riklin left the board of Trinity
Mirror.
Since the year-end, Margaret Ewing has been appointed to the Board as Group
Finance Director. She takes responsibility for the finance role from John
Allwood, who remains with the Group as Deputy Chief Executive and Chief
Operating Officer.
Outlook
The Group has made good progress in its first six months since the merger and
has had a good start to trading in 2000. Its national titles are performing
in line with expectation with an encouraging response to M magazine. Although
the motors market remains weak, the regional titles are benefiting from the
management changes made in late 1999 and a strong employment advertising
market.
The Group's new media strategy, announced today, provides a clear outline of
the Group's plans to achieve a leading market share in the rapidly growing
areas of e-commerce and online advertising revenues. This will provide a
strong base for the growth of Trinity Mirror over the long term.
Enquiries:
Philip Graf/Margaret Ewing/Nick Fullagar Tel: 0207 293 3000
Trinity Mirror plc
Rupert Younger/James Leviton (Media)
Justine Samuel/Katie Evans (Investors) Tel: 0207 251 3801
Finsbury Ltd
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