* Sees 2012 profit flat at 104.5 mln stg, ahead of market
* Says advertising picks up in Nov., cost cuts on track
* Says yet to be served with claims on phone hacking
* Shares up 4.5 pct
By Sarah Young
LONDON, Nov 8 British newspaper publisher
Trinity Mirror said on Thursday it had seen a pick-up in
advertising in November, sending its shares up more than four
Advertising revenues at the Daily Mirror in particular have
improved in the month so far, the group said, giving it
confidence on profit targets.
This could signal an advertising turnaround after months of
gloom. The group said in the 17 weeks to Oct. 28 ad revenue fell
"They're talking about a big swing in November on
advertising. I think this'll be the main take-away," Panmure
Gordon analyst Alex Degroote said. He said he believed the
pick-up was driven by mobile phone companies promoting 4G
networks and retailers.
The advertising market has been in the doldrums due to the
weak economic climate. This was highlighted last month when WPP
, the world's biggest advertising group, cut its sales
outlook for this year.
Newspaper advertising has also been squeezed by readers
The company, which owns 100 regional titles as well as the
flagship Daily Mirror tabloid, said it expected 2012 profit to
match last year's 104.5 million pound ($167 million) level,
putting it on track to beat a current Thomson Reuters consensus
forecast of 96 million pounds.
The Daily Mirror looks set to be dragged into the phone
hacking scandal which has knocked the reputation of British
journalism but Trinity Mirror said it has yet to be formally
Last month, a lawyer filed the claims against Trinity Mirror
on behalf of four people, including former England football
manager Sven-Goran Eriksson.
Trinity Mirror said on Thursday it would issue notices
requiring claims over phone hacking allegations to be served. It
said it has not yet received legal papers.
Rival newspaper group News International has settled dozens
of civil cases, paying tens of millions of pounds, and some of
its journalists are still facing criminal charges over the
allegations that staff routinely hacked into voicemail messages
to generate stories.
Trinity Mirror has been cutting costs because of the tough
economic climate. It said it was on track to deliver cost
savings of 20 million pounds in 2012 and that it paid down some
19 million pounds of debt in the period.
Shares in Trinity Mirror gained 4.15 percent to 69 pence at
1157 GMT, valuing the firm at over 170 million pounds.
Trinity Mirror said there was nothing further to say at this
stage on the possibility of it taking a minority stake in a new
group formed by combining the assets of privately owned
Yattendon's Iliffe News & Media with Northcliffe's 84
newspapers. Northcliffe is owned by Daily Mail