British newspaper publisher Trinity Mirror Plc is planning to double cost savings for the year from its earlier plans as weak print advertising took a toll on first-half revenue.
The company, which has been battling lower advertising rates at the 'Daily Mirror' and 'Sunday Mirror', said it targeted cost savings of £20m (€28m) this year compared with its previous target of £10m, to protect profits. The higher cost-savings target would, however, increase restructuring expenses by about £5m to £15m, Trinity Mirror said.
"Despite the weak revenue trends, the company has plenty of cost savings it can still drive..." Liberum analysts said in a note, and kept their "buy" rating on the stock.
Trinity Mirror said it expected an 11pc fall in revenue for the 26 weeks ending June 28, as print advertising revenue fell by almost a fifth during the period. Underlying digital publishing revenue, however, is expected to jump 26pc in the period, helped by a 50pc rise in average monthly unique users and page views.
Trinity, which also owns the 'Daily Record', the 'People' and regional titles such as the 'Liverpool Echo' and 'Manchester Evening News', said it expected full-year profit to be in line with expectations.
Trinity Mirror, which has been embroiled in the high-profile celebrity phone-hacking scandal, confirmed that its subsidiary MGN was seeking permission to appeal against a court ruling ordering it to pay a total of £1.2m in damages to eight hacking victims. (Reuters)