Ads war continues to dent Trinity

Trinity has made more savings than it expected

The continuing tough advertising market pushed annual profits at newspaper publisher Trinity Mirror 13.8% lower for 2006, the media group said.

Trinity, which last year announced plans to sell off the Racing Post, the rest of its sports division, and several regional papers, made £185.4m.

Income fell 4.8% as it battled to win advertisers in publications including the Daily Mirror and The People.

Falling circulations have weakened its hand with advertisers.

We continue to expect advertising market conditions to stabilise during the year Sly Bailey Trinity Mirror Check Trinity Mirror share price

However, it said the end of 2006 had been "encouraging".

Savings of £20m had been made in 2006, it said, £5m ahead of schedule.

Confidence

"Although the current environment remains challenging and volatile, we continue to expect advertising market conditions to stabilise during the year, with the rate of decline slowing," said chief executive Sly Bailey.

"The combination of this stabilisation and continued focus on cost reduction underpins the board's confidence in the future, with 2007 performance in line with expectations.'

Shares in the group rose nearly 4% by midday on Thursday.

Trinity said it had received "strong interest" in the businesses that it put up for sale at the end of last year.

Trade buyers and private equity firms had made approaches since announcing plans to sell its the Racing Post and newspapers including the South London Press and the Coventry Telegraph, it said.

By offloading its regional titles in the Midlands, London and the South East, Trinity will focus on national and regional newspaper titles in Scotland, the North of England and Wales, as well as UK digital assets.