Newspaper publisher Trinity Mirror PLC (LON:TNI) saw its shares fall today after it reported a 10.7% drop in full-year print revenues and provided no update on possible plans to combine its struggling Mirror business with the Daily Express.
In full-year results, the owner of the Daily and Sunday Mirror said it had seen particularly weak demand from retail customers for display advertising, and a drop in classified recruitment postings.
However, a tight control on costs and the acquisition of more local newspapers, enabled the group to post a 25.5% jump in adjusted operating profit to £137.5mln for the 53 weeks to January 1, up from £107.5mln a year earlier.
The firm said it plans to focus on growing its digital advertising sales and further diversifying its income.
Trinity Mirror added that it is “confident it would be able to deliver sustainable growth in revenue, profit and cash flow over the medium term.”
Chief Executive Simon Fox said: "We have delivered a strong financial performance in the year despite the challenging environment we face.
"I am particularly pleased with the progress we have made in growing our digital audience and revenue, and with the work we have done this year to develop and refine our strategic priorities for the year ahead."
But Trinity Mirror’s share price still shed over 5%, or 6.25p at 113.0p.
In early January, Trinity Mirror said it was in early stage talks about investing in a new company comprising assets owned by privately-owned Northern & Shell, the group that owns the Daily Express, Sunday Express, and the Daily Star titles.
But there was no update today on how those talks were progressing.