British newspaper publisher Trinity Mirror has posted a 6 per cent rise in underlying annual profit after saying that advertising markets remained tough.
"The pressure on earnings continues as there is as yet no sign of improvement in our traditional advertising markets," chairman Victor Blank said. Mr Blank has said he will leave Trinity in May after its annual shareholder meeting.
The Daily Mirror owner made £220.9 million profit before tax and exceptional items in the 52 weeks to January 1st, on revenues down 1.7 per cent to £1.12 billion.
Cost control helped widen its margin to 22.5 per cent from 21.8 per cent amid falling advertising revenue, including a "sharp decline" in recruitment advertising, Trinity's most profitable advertising category.
For 2006, the company saw pressures coming from both the cost and revenue sides.
Mr Blank said that alongside tough advertising markets, the newspaper publisher expected "significant cost pressure" from newsprint price increases of 7 per cent, increasing energy costs, increased labour costs and other inflationary cost increases.
Annual advertising revenue at Trinity's Regionals division fell 2.7 per cent to £404 million, following a 7 per cent decline in the second half. Ad revenues at the Nationals division fell 9.2 per cent to £176 million.