Trinity Mirror shares surge

The publisher of the Daily Mirror has reported a marked slowdown in the decline in advertising revenue as it gave hope of more stable conditions for the embattled newspaper sector.

Trinity Mirror reported half-year ad sales down 14.4% across its national titles and 34.5% for regionals, but said the picture had improved progressively over the summer and was set to continue getting better.

Ad revenue falls across the regional titles - including the Newcastle Journal and Liverpool Echo - eased from 36.8% in January to 29% in July, while the nationals saw the drop slow from 15.9% to 10% this month.

The group said in a statement: "While advertising revenues have fallen to unprecedented levels due to the downturn, we have seen a marginal improvement in the rate of decline as we progressed through the period and this is expected to continue for the remainder of the year."

Shares raced 13% ahead as the market took comfort in Trinity's cheerier outlook and a better-than-expected set of interims.

However, its figures revealed the impact of recession, with underlying pre-tax profits down by more than half to £31.3 million in the 26 weeks to June 28 from £70.8 million a year earlier.

Trinity Mirror has been cutting jobs and shutting titles as it battles against the slump in ad revenues and a plunge in consumer spending.

It last year announced a reduction in headcount of 1,200, with more than 800 staff leaving the group during 2008 - around 9% of its workforce.

The group has axed dozens of local titles, with nearly 30 shut last year alone.

These actions have been successful in reducing costs significantly, down £46 million to £334 million in the period - and it expects total costs to fall by £65 million over 2009.