How many times now have we seen companies report big digital growth in an otherwise shrinking market? Trinity Mirror (LSE: TNI) digital revenues grew 26.5 percent in the 17 weeks to April 27, while overall group revenue dipped 2.7 percent.
Digital revenues in regionals grew 20.6 percent but a complete figure wasn’t given for national digital. Factoring in the boost from digital acquisitions The Career Engineer and Rippleffect, digital actually grew 44.1 percent. Those sites, TM confirmed, are in the regional division.
– Economy: But none of this disguises the reality that advertising overall fell 4.3 percent and circulation fell 1.2 percent. Media had begun to forecast improved ad markets at the end of 2007 – but that was before the credit crunch. From the statement: “The outlook for the UK economy remains uncertain with the ongoing adverse implications of inflationary cost pressures … businesses are curtailing marketing budgets to offset the prospect of slowing revenues. This has resulted in the advertising environment remaining difficult.” “Month on month volatility remains and we expect this to continue for the remainder of the year.”
– Forecast: So TM is sticking to its strategy of “building a growing multi-platform media business via the launch and acquisition of new products and services complementing our print offering”. In other words, websites. It said the performance is in line with expectations, and aims for £20 million in cost-cutting by year’s end. Statement