Media sector hit by Trinity Mirror results
- Published: 02 July 2008 15:56
- Last Updated: 02 July 2008 15:56
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An unscheduled trading update from Trinity Mirror proved to be the catalyst for a second week of heavy falls for the Broadcast 20.
Trinity Mirror reported a marked year-on-year decline in advertising revenues in May and June and forecast that this would continue for the rest of the year.
Predictably, this news affected the whole media sector with BSkyB and ITV hitting new 52-week lows. ITV shares also came under pressure after Project Kangaroo - its joint-venture with the BBC and Channel 4 - was referred to the Competition Commission. ITV's target price was also cut to 48p by Deutsche Bank and its shares fell 15.3% on the week to 42.6p.
Elsewhere, SMG confirmed the completion of its sale of Virgin Radio to TIML, as well as the board's intention to return £30m to shareholders. Its shares gained 3.77% to close at 13.75p.
Howard Davies, partner, Deloitte
This column provides a weekly commentary on the key movements among 20 listed media companies chosen by Broadcast. Source: Datastream
