UK newspaper publisher warns of government cuts hurting advertising revenues
12 Nov 2010
The UK's Trinity Mirror has become the latest publisher to warn that government spending cuts have started hurting advertising revenues.
Shares in the Daily Mirror and Sunday Mirror owner fell 15 per cent after revelations by Trinity that revenues had dropped 5.4 per cent in the four months ending October.
The warning comes just a day after the public sector clampdown came in for blame from Scotsman-owner Johnston Press for a 5.4 per cent slump in advertising sales in the last quarter, which sent its shares to a 19-month low.
In an update, Trinity reported a 6.7 per cent fall in underlying turnover at its regional newspaper wing which includes the Birmingham Post and the Liverpool Echo, while national advertising sales were down 1.3 per cent.
According to analysts, as per Jonhston's press reports there had been considerable advertising volatility around the comprehensive spending review which affected business confidence and in turn advertising.
According to the Trinity, "Trading since the half year has remained volatile due to the fragile economic environment and the uncertainty resulting from the government spending review."
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