Trinity Mirror has experienced a decline in third-quarter revenue as talks continue to acquire Northern & Shell, the owners of the Daily Express and Star newspapers.
According to the update from the owners of the Daily Mirror there has been an 8% fall in like-for-like revenue in the period, with publishing revenue falling by 9% and print by 10%.
Print advertising and circulation revenue also plummeted, falling by 16% and 7% respectively, although digital revenue grew 4%.
Trinity Mirror’s revenue has fallen during talks with the owners of Daily Express and Daily Star
Discussing reasons for the disappointing figures the group said it is experiencing ‘improving trends’ in nationally sourced print advertising revenues, but added that local advertising, particularly classified, remains ‘challenging and volatile’.
Last month it was revealed that discussions were under way to buy Northern & Shell.
Commenting on the possible acquisition Trinity said: ‘Further to the announcement made on 8 September 2017, the group continues to make progress on discussions to acquire 100% of the publishing assets of Northern & Shell. Further updates will be made when appropriate.’
Richard Desmond acquired the Northern & Shell titles in 2000 for £125 million. According to City sources Desmond is demanding £130m for Northern & Shell.
Shares in Trinity Mirror were up 0.76% to 83.8p following the update.
Richard Desmond, billionaire owner of Northern & Star, is demanding £130m for titles
Last month the Express and Daily Star newspapers revealed that it had pre-tax profits of £13m, down by more than half on the prior year. The sharp deterioration reflected a 10% decline in turnover to £157m.
The print media industry is grappling with a decline in print advertising and any combination could herald cost savings and a shared cut of a larger advertising pool.