Newspaper heavyweight Daily Mail & General Trust has announced preliminary results for the year ended 3rd October 2004, revealing adjusted profit before tax of £234 million, up 26% on the figure for last year, spread across the Group’s businesses and marking significant growth in all aspects of the company.
In particular, the performance reflects growth from DMGT’s national newspaper, exhibition and business to business information divisions. The group also reported a strong performance from its Euromoney Institutional Investor business.
The profit returned by DMGT’s newspaper divisions includes an additional week’s trading on the figure for 2003, with the effect being an increase in profit of around £4 million. Statutory profit before tax for the year is £125 million, up 15% on last year’s figure, however, 40% of the company’s operating profit during 2004 has been generated by its non-newspaper divisions.
Looking to the future, DMGT reports an encouraging start to the new financial year, with newspaper circulations remaining ‘robust’ and reporting that its advertising business is ‘holding up well’. However, the firm warns that recent weeks have shown signs of a slowing in the regional advertising market, with prices of newsprint also likely to rise in 2005.
In addition, the company’s newspaper divisions will have one fewer trading week next year, and will not print a Saturday newspaper on Christmas Day.
The group predicts that it will be a ‘down year’ in the exhibition cycle, and predicting an increased level of investment in its Australian radio business and, to a lesser extent, in Teletext.
Overall DMGT claims that its businesses are in good shape, finding opportunities for growth both by launching new products and by making ‘small acquisitions’ at ‘attractive prices’. The board therefore forecasts another year of progress, albeit set against the backdrop of an uncertain advertising market.
Related Links
