Trinity Mirror (LSE: TNI) added 10p to 185p during early trade this morning after the newspaper publisher announced that 2013 adjusted profit would be above market expectations, driven by better-than-anticipated trading in November and December, with digital revenue increasing.
The Daily Mirror and Sunday Mirror publisher announced that adjusted operating profit would beat forecasts by 4%. Total revenue across November/December fell 1% compared to the same period in 2012, while digital revenue increased by 32%.
The group added that it would also take some large impairment charges, to the tune of £225 million, in respect of the group’s goodwill and intangible assets. In addition, a separate non-cash impairment charge of around £700 million is expected on the balance sheet when final results are published.
The Trinity Mirror board will seek a court approved capital reduction in order to maintain the flexibility to pay out dividends in the future.
The group’s chief executive, Simon Fox, had the following to say:
“I am pleased with the Group’s performance for 2013, which is ahead of our expectations following a better than anticipated end to the year.
“The impairment charges are driven by technical accounting requirements. They do not relate to or impact the progress we are making with our strategy and I continue to believe that the business has significant long term potential.”
Prior to today City experts were predicting Trinity Mirror’s upcoming annual results to show earnings equivalent to 30p a share, which the publishing group expects to beat by 5%
Therefore, following today’s price movement and adjusted expectations, the shares may trade on a P/E of 6.
