Government cuts crack Trinity Mirror
The owner of the Mirror and Sunday Mirror newspapers warned that the government's austerity drive has hammered its advertising revenues.
Sly Bailey: Trinity boss will continue clamping down on costs
Trinity Mirror revealed that public sector ad spending had plummeted 47% between January and April as the Coalition began tackling Britain's gaping budget deficit.
The pull-back by the government and local authorities - which are among the biggest buyers of ad space - sent the group's ad turnover down 10% over the period.
The 'fragile economic environment' has also hit sales, with a weak labour market slashing recruitment ad turnover by more than a fifth at its regional newspaper wing.
The warning came just days after rival Johnston Press, which owns The Scotsman, reported a 30% plunge in its 'situations vacant' revenues due to the public sector cuts.
Trinity Mirror, headed by chief executive Sly Baily, pictured, vowed to continue clamping down on costs and raised its savings target for this year by £5m to £15m.
At its annual shareholder meeting, Trinity Mirror said: 'Whilst the trading environment remains difficult, the group continues to benefit from on-going initiatives to drive efficiencies through.'
Its debt pile increased by £20m to £286m, although it is expected to fall over the remainder of the year.
Ad revenues at its national newspaper division slid 9%, with turnover from circulation down 5% over the period.
Shares in Trinity Mirror fell 1.75p to 50.125p and have lost around 30% of their value since the start of the year.
Most watched Money videos
- German car giant BMW has released the X2 and it has gone electric!
- How to invest to beat tax raids and make more of your money
- Would you retire abroad for cheaper living costs?
- MG unveils new MG3 - Britain's cheapest full-hybrid car
- Iconic Dodge Charger goes electric as company unveils its Daytona
- Aston Martin unveils new Vantage sports car capable of 202mph
- Pair of rare 1980s Ford Sierra RS500 Coswotths head to auction
- Mini unveil an electrified version of their popular Countryman
- The new Volkswagen Passat - a long range PHEV that's only available as an estate
- Steve McQueen featured driving famous stunt car in 'The Hunter'
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- Four in 10 mortgages are being taken out by borrowers who...
- My blood boils when I hear critics say Waspi women should...
- Insurers are STILL stinging drivers by undervaluing...
- Thames Water shareholders refuse £500m lifeline plea
- My friends say I'm a shopaholic but I'm 34, single and...
- Insurance market Lloyd's of London toasts best result 'in...
- Competition watchdog clears Aviva's £460m acquisition of...
- William Hill owner 888 agrees to flog assets as it...
- AO World shares surge as online retailer electronics...
- BUSINESS LIVE: Crypto fraudster SBF handed 25-year prison...
- Dividend hero SAINT's manager on the best shares for...
- Spirent ditches Vivai as Keysight gatecrashes deal with...
- EnQuest posts another loss after hit from oil and gas...
- The turning of the tide for luxury e-commerce? Shoppers...
- Superdry founder Julian Dunkerton ends his pursuit of the...
- Interest rate cuts still 'a long way off' despite falling...
- Cost of Baltimore bridge disaster will run into multi...
- Disgraced crypto tycoon Sam Bankman-Fried sentenced to 25...