Trinity Mirror shares rise despite warning over advertising revenue
The publisher of the Daily Mirror newspaper has warned of another sharp fall in advertising revenue and increased provisions relating to the phone-hacking scandal.
Trinity Mirror said it expects print advertising revenue to plummet 17% in the fourth quarter, compounded by a 5% fall in circulation.
The group recorded a 21% fall in print advertising revenue in the previous period, although it said on Friday that digital revenues are set to rise 18% in the final three months of the year.
However, shares rose 3.5% in morning trading as investors welcomed news that Trinity's performance for the year "will be marginally ahead of expectations", with net debt falling to around £35 million by the year end.
The company's stock was trading at 87p.
On phone-hacking, Trinity said: "To maintain momentum in bringing the process to a conclusion it is clear that costs, in particular the claimants' legal costs, will be higher and this has caused us to increase the provision for dealing with these historic matters by £11.5 million.
"Including this increase, the provision remaining at the end of this year is expected to be around £22 million."
The publisher said it has made "good progress" on settling civil claims arising from phone- hacking with damages for more than 80% of claims now settled.