Daily Mirror owner sets aside another £7.5m to settle phone hacking claims

Newspaper group Trinity Mirror has set aside an additional £7.5m ($9.8m) to settle phone-hacking allegations and confirmed that it has secured a five-year contract to print the Guardian.

The latest provision means that the publisher of the Daily Mirror has so far put aside more than £60m to cover payouts and legal costs relating to the scandal that engulfed the industry, sparked by the interception of voicemails to murdered schoolgirl Milly Dowler in 2002 at the now defunct News of the World.

Trinity said it has settled over 80% of cases it faces, but added "the lengthy process of settling claims and the structure and quantum of legal fees for the claimants" required the provision to be increased.

But it warned "there remains uncertainty as to how these matters will progress."

The group also confirmed it has signed a five-year print and distribution deal for the rival Guardian and Observer newspapers from early 2018, as the Guardian ditches its distinctive Berliner format in favour of a tabloid size in a bid to cut costs. Reports first surfaced that the Scott Trust owner of the Guardian and Observer would make this move earlier this month.

The announcements were made as part of the group's trading update for the 26-weeks to 2 July in which Trinity said revenue is expected to fall by 9% on a like-for-like basis.

Print advertising and circulation revenue fell by 21% and 6% respectively over the period, although Trinity said the decline was impacted by strong comparatives last year when the European Championship took place.

Trinity Mirror chief executive Simon Fox said: "The trading environment for print in the first half remained volatile but we remain on course to meet our expectations for the year.

"I anticipate that the second half will show improving revenue momentum as we benefit from initiatives implemented during the first half of the year."

Trinity Mirror's titles also include the Sunday Mirror and Sunday People, as well as a stable of regional newspapers.