Ad spending boosts Trinity Mirror

Circulation at the flagship title dropped during the year

UK newspaper publisher Trinity Mirror has seen its annual pre-tax profits jump on the back of increased advertising revenue and cost cutting.

The figures come despite falls in circulation at the company's Daily Mirror tabloid after the publication of fake Iraq prisoner abuse photos.

Post-exceptional profits were £207.1m, against £60.6m in 2003, reflecting 2003 exceptional items of £111.9m.

Pre-exceptional profits were £216.8m, up from £172.5m in the previous year.

Advertising spend

At Trinity Mirror's national newspapers, advertising revenue rose 2.1% in the 52 weeks ending 26 December, the first gain in four years.

At the firm's regional papers, advertising revenues rose 5.3% in the same period.

We are in good shape both operationally and financially Sir Victor Blank, Trinity Mirror chairman Check Trinity Mirror's share price

Trinity said circulation at the Daily Mirror dropped by 3% following the publication of the photos in May.

This contributed to a drop in market share of about 0.8% in 2004, a performance the group described as disappointing.

In the statement, the group said that maintaining market share for its national titles remains a key focus.

It did however stress that the emphasis was on building profitability, rather than maintaining market share at any cost, "in a marketplace characterised by significant price cutting and marketing activity".

The company, which publishes 240 local and regional newspapers and five national titles, has more than 60 online interests including the Fish4 local directory sites. It added that its websites will be a "key pillar" of its future strategy.

Buyback 'welcome'

Trinity Mirror raised its annual dividend by 10.4% to 20.2 pence per share.

It also announced its intention to return up to £250m to shareholders through a three-year share buyback programme, due to start this year.

Analysts welcomed news of a buyback.

"We believe a significant buyback programme marks an important shift in focus from cost restructuring to accelerating returns to shareholders," Morgan Stanley analysts wrote in a research note.

Its shares closed up 5.04% at 719.5 pence on Thursday.