This announcement contains inside information.
Although the trading environment remains challenging, at this stage, the Board anticipates that our interim and full year results* will be in line with our expectations.
We continue to make progress with our strategy of growing digital display and transactional revenue whilst at the same time tightly managing our cost base to support profits and cash flow with net debt falling in the period.
Group revenue is expected to fall by 9% on a like for like** basis over the period.
Publishing revenue is expected to fall by 10%, with print declining by 12% partially offset by digital which grew by 5%. Publishing print advertising and circulation revenue fell by 21% and 6% respectively over the period, although the advertising decline was affected by our strong performance over the European Championship in 2016. We continue to deliver strong growth in digital audience which enabled digital display and transactional revenue to grow by 18%.
Since announcing our
Print and distribution contract
During the period, the Group secured a five year print and distribution contract for the Guardian and Observer newspapers from early 2018.
Historical Legal Issues
We have continued to make progress on the settlement of civil claims in relation to phone hacking with damages for over 80% of claims settled. However, the lengthy process of settling claims and the structure and quantum of legal fees for the claimants has required the provision for settling these matters to be increased by
Although there remains uncertainty as to how these matters will progress, the Board remains confident that the exposures arising from these historical events are manageable and do not undermine the delivery of the Group's strategy.
"The trading environment for print in the first half remained volatile but we remain on course to meet our expectations for the year. I anticipate that the second half will show improving revenue momentum as we benefit from initiatives implemented during the first half of the year."
The person who arranged for the release of this announcement on behalf of Trinity Mirror was
020 7293 3553
020 7404 5959
Simon Fox, Chief Executive
Vijay Vaghela, Group Finance Director
Nick Cosgrove, Partner
William Medvei, Director
The statement on future performance is given as at the date of this announcement and is subject to a number of risks and uncertainties and actual results and events could differ materially from those currently being anticipated as reflected in the statement. The Company undertakes no obligation to update this forward-looking statement.
* On an adjusted basis excluding non-recurring items, restructuring charges in respect of cost reduction measures, the amortisation of intangible assets, the pension administrative expenses, the retranslation of foreign currency borrowings, the impact of fair value changes on derivative financial instruments, the pension finance charge and the impact of tax legislation changes.
** The like for like trends for 2017 exclude from the 2016 comparative: the extra week of trading in 2016, the Independent print and distribution contract which ceased in