Trinity Mirror (LSE: TNI) rallied as much as 25% in early trading after the newspaper group announced additional cost reduction measures and an agreement with its pension trustees over contributions.
In an interim statement covering the seventeen weeks to 26 October 2008, the company reported, as expected, a deteriorating advertising market and trading conditions, though its digital revenues continued to perform well.
Overall, Trinity Mirror said it was cautious looking ahead into 2009, and as a response, had opted to push through additional annualised cost savings measures that would save the group £25 million in 2008 and a further £20 million in 2009.
Investors were also relieved to hear that the group continues to trade within its banking covenants and that an agreement had been reached with the Mirror Schemes pension trustees to keep contributions at the same level.
Financial highlights for the period included an 11.4% drop in group revenues, a 19.4% drop in advertising revenues and a 5% slump in circulation. Group revenues for the year to date fell by 5.4%.