Trinity Mirror warns of Brexit impact as profits rise 42% to £66.9m


The publisher of the Daily Mirror newspaper has warned that revenues could be hit as a result of the fallout from Britain's decision to leave the European Union.

Trinity Mirror said the referendum outcome had created "increased macroeconomic uncertainty", adding that while the impact is and hard to assess, "based on current UK growth forecasts there is a risk that our revenues could be lower than expectations".

"In addition, there are other related factors which affect the group; for example, the impact of a tougher UK business environment on interest rates and therefore long-term bond yields and the deficit in the group's defined benefit pension schemes," the company said.

The firm warned last month that it will take "mitigating actions" to support profits in the wake of the Brexit vote.

Trinity made the announcement alongside its first-half results, which saw adjusted pre-tax profit rise 42% to £66.9 million on revenues of £374.7 million.

Like-for-like sales from the firm's digital offering grew 14.4% to £39.7 million, with average monthly page views rising 19% to 770 million.

However, revenue from print fell 10.3%, with Trinity flagging "increased challenges" in the advertising market.

Trinity's pension deficit increased by £120.8 million to £426 million, driven by a fall in long- term interest rates.

Trinity's sales were boosted by the acquisition of rival Local World last year, which it snapped up for £187 million and is proving a success for the group.

This is in contrast to Trinity's doomed newspaper launch New Day, which folded after just two months. The venture is thought to have cost the company up to £7 million.

Chief executive Simon Fox said: "We are already seeing the benefits from our acquisition of Local World last year and continue to tightly manage the cost base across the group.

"Our strategic focus remains to grow digital audience and revenue whilst protecting print revenue and profit."