Trinity Mirror PLC (LON:TNI) has said that although its trading environment remains challenging, it anticipates that “interim and full year results will be in line with our expectations.”
However, the news paper publisher said historic legal issues over the phone hacking scandal remain an issue and, although over 80% of civil claims have now been settled, the group has increased provisions for legal fees for the claimants by £7.5mln.
READ: Trinity Mirror sees full-year print revenues fall 10%, plans to focus on digital advertising
In a trading update for the 26 week period to 2 July 2017, the small cap firm said group revenue is expected to fall by 9% on a like-for-like basis over the first half.
It added that publishing revenue is expected to fall by 10%, with a 12% decline by print partially offset by digital which grew by 5%, and publishing print advertising and circulation revenue fell by 21%and 6% respectively.
The firm continued: “We continue to deliver strong growth in digital audience which enabled digital display and transactional revenue to grow by 18%.”
Simon Fox, Trinity Mirror’s chief executive, said: "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."
Shares up 4% early on
In early morning trading, Trinity Mirror shares jumped 4.2%, or 4p higher to 99p
In a note to clients reiterating a ‘buy’ rating and 210p price target on Trinity Mirror shares, analysts at Numis securities said; “Directionally, the performance was as expected and consistent with the May update with a -12% decline in Print partially offset by +5% growth in Digital.
They added: “Encouragingly, strong growth in digital audience drove an +18% increase in digital display and transaction revenues.
“Further, the group expects 'improving revenue momentum [in H2] as we benefit from initiatives implemented during H1'.
-- Adds share price, analyst comment --