Pre Close Trading Update
The revenue environment has remained challenging throughout the first half, continuing the trends experienced at the end of 2014. Whilst monthly revenue trends are expected to be impacted by further volatility for the rest of the year, at this stage, the Board continues to expect profits for the year to be in line with expectations.
During the 26 weeks to
We continue to deliver strong growth in our digital audience** with average monthly unique users and page views growing by over 50%. The growth in audience drove an increase in digital display revenue of over 40%. Mobile continues to be an increasingly important component of digital revenue growth and we are enhancing our products and advertising formats to take advantage of the ongoing opportunity in this area.
Publishing print revenue trends have been adversely impacted by more challenging print advertising markets with print advertising revenue expected to fall by 19% in the period. On an underlying basis print advertising revenue is expected to fall by 17%. The key retail and telecoms categories have been more challenging reflecting tough comparators and reduced volumes across the market. Circulation revenue is expected to fall by 6%, with trends improving from May following a cover price increase for the Daily Mirror Monday to Friday edition.
The business continues to deliver strong cash flows and paid a dividend of
In light of the more challenging revenue environment the Group has reviewed its current cost reduction programme and is now targeting structural cost savings of
Further to our announcement on
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.
*Underlying trends exclude revenues for titles closures in the South and the newsprint supply to the Independent and i which ceased at the end of 2014. In 2014 the revenue generated by the titles closed in the South was
**Average monthly unique users and page views for the Publishing division across web, mobile and apps for January to