(68) Trinity Mirror reports 19% print ad slide as it confirms the New Day's closure

Link: http://www.theguardian.com/media/2016/may/05/trinity-mirror-digital-new-day-closure

 

Summary:

 

Trinity Mirror has reported a fall of nearly 20% in print ad revenues as it confirmed it is to close the New Day after just two months. Publisher says it is to focus on boosting digital revenues as it admits sales of cut-price paper were ‘below our expectations’. Ahead of its AGM on Thursday, the Daily Mirror publisher said the print advertising market had been “volatile” in the first four months of this year, but digital had bounced back somewhat. Trinity Mirror’s trading update, for the period from 28 December to 1 May, highlighted the ongoing tough trading conditions faced by newspaper publishers.

Key data/statistical information:

• The company said print advertising revenues declined by 19% year on year across the period, with newspaper sales falling by 4.5%.
• This ameliorated slightly in April, when print revenues fell by 15.8%.
• Trinity Mirror said digital income, which is building from a relatively low base, grew by 15.7% in the four-month period and by 18.6% in April alone.
• The New Day, which was launched at the end of February with an upbeat £5m ad campaign, “Seize the New Day”, will publish its last issue on Friday.
• Trinity Mirror confirmed the New Day’s closure was because the title failed to sell enough copies. The aim had been to sell in excess of 200,000 per day, but it is understood that at closure sales were hovering around 30,000.

What's my view?

This shows yet another newspaper closing down. It gives evidence of the decrease in popularity of newspapers. As one newspaper closes, it affects another as we can see with the Trinity Mirror. In my opinion, this will continually happen until newspapers become something of the past but this process will happen gradually.