National newspaper advertising revenues should be up 6-8% year-on-year in 2010, with ‘popular’ titles in particular attracting display ads from national retailer brands
Local and regional press advertising revenues will fall by about 6% year-on-year, mainly on the continued decline of recruitment classifieds
Publishers are exploring more efficient printing, new digital models, and staking a claim on e-commerce
C&W Worldwide’s performance over the six months to September was strong in terms of cash flow growth, although this was partly due to lower bad debt cost
Revenue decline is easing, but weakness in the mid-market business and reduced public sector spending are weighing on EBITDA
Looking ahead, this should improve somewhat, as the retail mid-market business recovers, but we expect growth in the core business to remain unexciting
C&W Worldwide’s first set of annual results since demerger were flattered by the inclusion of a full year of Thus
Nonetheless, management has continued to execute well despite difficult market conditions. Excellent cost control generated another year of strong underlying cash flow growth, albeit from a low base
Looking ahead there are grounds for continuing optimism, despite minimal guidance, although the rate of cash flow growth is set to drop, as cost reduction becomes progressively more challenging
Trinity Mirror (TM) has acquired Guardian Media Group’s (GMG) regional media business for £7.4 million cash, also releasing GMG from a £37.4 million liability print contract
The deal is the first significant consolidation play since the cyclical downturn that started in 2008 helped reduce local newspaper advertising by about 35% or £1 billion. TM is understood to have beaten private equity to the deal, signalling that consolidation activity in local media may be starting to warm up
While the price tag appears small for a business that generated £94.5 million in FY 2009, its operating profit had fallen to £0.5 million, and TM should be able to realise measurable local synergies and cost savings