Trinity Mirror Shares Rise as it Closes ‘New Day’by
Publisher of Daily Mirror cites integration of Local World
`New Day' title to stop printing on Friday after 10 weeks
Trinity Mirror Plc, owner of Britain’s Daily Mirror tabloid, rose the most in 4 1/2 months as a decline in revenue slowed and the company projected cost savings next year as it integrates the recently acquired Local World newspaper group.
The shares rallied as much as 8.9 percent as Trinity Mirror also said it would close one of its newest titles. The stock was up 5.8 percent at 119.5 pence midday in London, for a market valuation of 339 million pounds ($490 million).
Trinity Mirror said in a statement on Thursday its new national newspaper, “New Day,” which was started only 10 weeks ago, would stop printing due to poor circulation figures. The shares rose as Trinity Mirror also said expects 12 million pounds in “synergy savings in 2017” as the integration of the Local World newspaper group remains on track. Trinity Mirror acquired the regional news company for about 220 million pounds in October.
“Trinity has reassured the market on profit expectations today,” said Alex DeGroote, a media analyst at Peel Hunt in London. “The shares have been marked down around 40 percent in the last couple of months and without any downgrades today, we could now see the shares rattle back up again.”