Trinity Mirror cuts costs and boosts profits with IT

Newspaper publisher Trinity Mirror has used technology-led methods to help it cut costs and make the business more efficient.

Newspaper publisher Trinity Mirror has used technology-led methods to help it cut costs and make the business more efficient.

The company's interim results statement for 2010 showed operating profit grew by 25.7% to £61.7m, up from £49.1m this time last year.

Group revenue was £382.2m, down by £0.8m on the £383m achieved last year.

Chief executive Sly Bailey said, "We have continued to invest in the business through the downturn in strengthening the portfolio and delivering IT led efficiencies, in addition to maintaining a keen focus on costs. We are now reaping the benefits of these actions with profits increasing and slowing rates of decline in underlying revenues."

The company said new IT systems are helping it re-engineer how it publishes content across editorial and advertising platforms, and that this has resulted in "a step change in the way content is published across print and digital".

The technology being used, according to the report, has enabled fundamental changes to the entire publishing process that reduce costs. It does not, it said, involve "trying to do the same things with fewer people."

The interim report explained how a new content management system for UK national titles will lead to the creation of "more efficient multi-media newsrooms".

Trinity Mirror has proposed cutting 200 editorial jobs in response to these changes, saying the IT is enabling the company to "eliminate outdated working practices".

The newspaper industry's reliance on digital advertising revenues continued to be undermined, with digital revenues across the group falling £300,000 from £18.6m this time last year to £18.3m. But Trinity Mirror attributed the fall to the "severity of the downturn", saying it continues to affect important sources of digital revenue such as recruitment and property.

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