(Corrects paragraph 7 to say the company cut net debt by, and
not to, about 91 million euros)
Jan 14 European publishing company Mecom Group
Plc estimated full-year core earnings well above its
forecast, saying that a decline in advertising revenue had
stabilised in the Netherlands and Denmark in the third quarter.
Mecom said earnings before interest, taxes, depreciation and
amortisation (EBITDA) would be about 87 million euros ($119
million) for the year ended Dec. 31. It had earlier estimated
core earnings of between 70 million euros and 80 million euros.
Mecom shares jumped 17 percent to 110 pence, making it one
of the top gainers on the London Stock Exchange.
"Whilst advertising revenue declines have abated somewhat
from the levels experienced in the first half of the year, the
Group does not expect further improvement in the short-term from
the rates of decline experienced in the second half of 2013,"
the company said in a statement.
Mecom has been selling assets and cutting jobs and costs to
ease the impact of sliding advertising rates across all its
The company, which publishes regional newspapers such as De
Gelderlander and De Stentor in the Netherlands, said it expects
the closure of a print plant in the Netherlands to boost
earnings in 2014.
Mecom said the sale of assets made during 2013 helped cut
net debt by about 91 million euros. Total operating costs fell
12 percent during the year, about 100 million euros lower than a
($1 = 0.7324 euros)
(Reporting by Aashika Jain in Bangalore; Editing by Supriya