Trinity Mirror: 'Trading conditions still volatile'

Trinity Mirror reports in an Interim Management Statement today that trading conditions continue "to be volatile with limited visibility on revenues" - factors that were exacerbated during April in the run up to the General Election.
But it has said that its acquisition of GMG Regionals, which includes the Manchester Evening News, is expected to be be profitable this year and is performing ahead of expectations.
The statement added: "The trading environment continues to affect all our sources of revenue, although we expect the rate of decline to ease as we progress through the remainder of the year and we benefit from weaker comparatives.
"We expect month on month volatility to continue. We continue to manage the cost base appropriately delivering operating efficiencies across the business and remain on track to achieve at least the £20 million targeted reduction in the underlying cost base in 2010."
Group revenues in the 17 weeks to the end of May this year have fallen by 2% and on a like for like basis revenues declined by 5%.
The acquisition of the GMG Regionals was completed on 28 March 2010 and during the 5 week period to 2 May 2010 it contributed revenues of £6million. The statement says: "The acquisition is expected to be profitable during 2010 and is performing ahead of our expectations."
Group advertising revenues for the period on a like for like basis fell by 5%, reflecting a decline of 3% for January and February and a decline of 6% for March and April.
For the Regionals division, advertising revenues for the period on a like for like basis have fallen by 8%, reflecting a decline of 6% for January and February and a decline of 10% for March and April.
With the exception of display advertising which was up 4% all advertising categories were down year on year with declines in the period of 20% for recruitment, 9% for property, 15% for motors and 11% for other classified categories.
For the Nationals division advertising revenues for the period remained flat year on year, with a 1% increase in January and February being offset by a 1% decline in March and April.
Group circulation revenues for the period on a like for like basis have fallen by 6% with a decline of 7% for the Regionals and 6% for the Nationals.
Group digital revenues for the period on a like for like basis have fallen by 8% driven by the impact of the wider economy on the more cyclical recruitment and property categories. However, excluding recruitment and property the company continues to see growth in other digital revenues across both Regionals and Nationals.

• NUJ shareholders are planning to raise the question of Trinity Mirror chief executive Sly Bailey's pay, and that of other executives, at the annual shareholders' meeting in London today.