British newspaper publisher Trinity Mirror reported 11 per cent annual earnings growth today, above market expectations, and said advertising revenues were still on an improving trend.
The firm, home to the Daily Mirror tabloid, reported profits before tax and exceptional items of £172.5 million for the year ended December 28th, fuelled by a cost cutting drive that marks the first stage of its recovery plan.
The earnings growth came despite a meagre 0.5 per cent rise in turnover to about £1.095 billion. Analysts on average expected a pre-tax profit of £168 million.
.Trinity Mirror unveiled plans last year to cut five per cent of staff, the initial step in a recovery plan designed to offset falling national advertising revenues, a cover price war and falling circulation of its flagship Daily Mirror early in 2003.
The company said it was now targeting £18 million in cost savings for this year, up from £16 million, and also raised its annualised savings target to £30 million by 2005 from £25 million previously.
"The improving trend in advertising seen in the final quarter of 2003 has continued into the first two months of 2004," the company said.
"Given this outlook for the key divisions, coupled with the benefits of the 'Stabilise Revitalise Grow' transformation programme, the board is anticipating continued improvement in performance during 2004."