Newspaper Ad Growth Remains Below Pre-War Levels, Says DMGT
Advertising revenues at Associated Newspapers – publisher of the national Daily Mail and Evening Standard in London – grew by just 0.4% in the first half of the year. Overall revenues at the division were more or less flat at £149 million.
Display advertising was down by 1%, with February and March increasingly weak due to the effects of the war in Iraq on bookings. Classified advertising rose by 4%, despite the Evening Standard‘s recruitment advertising experiencing a further 8% fall.
Associated’s operating profit fell by 22% year on year to £35.8 million. DMGT says that this decline reflects continuing investment in Ireland on Sunday following its relaunch in May 2002, additional investment in the Evening Standard and promotional expenditure for the Mail on Sunday in March, following a cover price increase.
Northcliffe Newspapers At the group’s regional press business – Northcliffe Newspapers – the performance was described as ‘robust’. Operating profit rose by 7% to £42.9 million, on turnover up 2% to £237 million.
Advertising revenues rose by 3% at Northcliffe. This was driven by recruitment advertising revenues which were up 7% and property revenues up 8%; other categories showed little year on year movement.
Overall pre-tax profits at the DMGT group were up by 19% to £77.4 million in H1. Turnover was virtually unchanged at £950 million.
Outlook Ad levels at the national papers remained weak in April, particularly in the travel category. May has seen some recovery, but the group is not anticipating a recovery to above pre-war levels in this financial year.
The regional papers are seeing slowing recruitment revenues, although strong property advertising.
Shares in DMGT were up 1p at 600.75p at 10.30 this morning.
