DMGT Newspapers Suffer Across The Board
Newspaper publisher, Daily Mail and General Trust (DMGT), has seen a dip of 1% in circulation revenues for its national newspapers for the five months to February 2006, with advertising revenues for the same period also suffering a depression, down by 9% year on year.
Associated’s display advertising revenue fell by 10% for the same period, while classified advertising revenues were down by 11%.
Turning to DMGT’s regional newspaper division, Northcliffe Newspapers continues to experience tough trading conditions, with UK revenues for the five months to February 2006 down by 7% year on year, and advertising revenues 3% lower so far this year.
Digital advertising from Associated online brands, including Jobsite, Find a Property and Prime Location, rose by 43% year on year, continuing to show signs of positive growth.
Advertising revenue at Teletext, however, dipped by 19% year on year, resulting from the expected decline in analogue viewing. Revenues from the Group’s television and internet services are up by over 70% in the five-month period to February.
Elsewhere, the publishers information business-to-business division continues to perform well, with year-on-year revenue growth exceeding 20%. Trading for the group’s financial publishing division followed a similar pattern, with demand for its events, training and electronic information products increasing.
DMGT announced last month that, after completing a strategic review, it would not be selling Northcliffe Newspapers believing it offered valuable long-term franchises (see DMGT Holds On To Northcliffe).
However, a report this morning in the Telegraph claimed that DMGT is considering offloading its south-eastern local newspaper division, with potential buyers including US-based peer Gannet and Trinity Mirror PLC.
Reports this weekend in the Financial Times speculated that DMGT was in talks over the disposal of the Scottish arm of its local newspapers division, claiming the division could raise up to £120 million.
Northcliffe, who currently owns over 100 regional titles, could be worth around £1.6 billion to a competitor or private equity firm, according to analysts.
The Daily Mail & General Trust: 020 7938 6747 www.dmgt.co.uk