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Trinity Mirror: H1 trading statement
The decline continues with and organic decline in advertising revenues of 10.6%, with performance weak across local (down 9.7%), national (down 12.7%) and Scottish titles (down 10.5%).
Circulation revenues, were more robust, as would be expected, and were down only 1%. Local nespapers have actually slightly increased circulation revenues - but even there the estimated increase is just 1.4%.
Both the short term trends (the declines in ad revenues) and the fundamental weaknesses of the bussinesses remain unchanged. Classified advertising is moving elsewhere (to the internet in particular) and newspaper readership is falling.
At 485p Trinity Mirror is cheap on a prospective PE of 10.5× with a 4.5% yield. However we do not feel that this is really cheap enough for a declining business.
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