British newspaper publisher Trinity Mirror said today it expected full-year operating profit to be about 10 per cent below expectations as advertising market conditions deteriorate.
The company said that since its trading update in early May, "advertising market conditions have deteriorated reflecting the uncertain outlook for the UK economy with the ongoing adverse implications of inflationary cost pressures and the wider implications of the credit crunch."
Trinity Mirror, which owns around 200 national and regional newspaper titles including the
Irish Daily Mirrorsaid it had seen a marked year-on-year decline in advertising revenues in May and June, and this was expected to continue for the rest of the year.
Underlying group revenue fell by 7.8 per cent in the nine weeks to June 29th, or by 4.5 per cent in the 26 weeks to June 29th. Underlying advertising revenue fell by 12.6 per cent in the nine week period and by 7.2 per cent for the 26 weeks.
"Month on month volatility remains and this could worsen as we trade through a very uncertain economic outlook," the group added.
Shares in Trinity Mirror closed at 151.50 pence on Friday, valuing the company at around £391 million ($780 million).