Strong Newspaper Revenues Aid DMGT Profits

The Daily Mail & General Trust (DMGT), owner of the Mail and Evening Standard newspapers, has this morning reported an increase in pre-tax profit of 11.8% to £83.4 million. For the six months ended 4 April 1999, turnover at the group was up by 14.7% to £754.1 million.

The group’s Associated Newspapers division reports a strong half year with circulations and advertising revenues contributing to an increase in operating profit. Total advertising revenue for the Daily Mail, Mail On Sunday and the Evening Standard was up 9% on the first half of the year on a like-for-like basis.

Associated says the reaction to its new free London newspaper, Metro (see Second Issue Review: London Metro), has been ‘very pleasing’ and that it is only now approaching its envisaged distribution level. Metro‘s advertising are therefore taking time to grow. DMGT’s Northcliffe Newspapers saw recruitment advertising drop by 6%, with large regional variations.

DMGT also owns Teletext, the digital version of which has so far been delayed (see Digital TV Services Fall Behind Schedule). Commenting on this, the group says that an initial service should appear before long, but it is some months before software will be available in ONdigital’s set-top boxes that is capable of receiving the full service.

Along with the financial results, DMGT also announced plans to launch a major new niche portal website in September 1999. Targeting women, and provisionally called CharlotteStreet.com, the site will be put together by Associated New Media.

Daily Mail & General Trust: 0171 938 6000