The Daily Mail & General Trust has announced an 11% year on year upturn in pre-tax profits to a record £288 million.
The publisher attributed its performance in part to strong growth in its B2B operations, which include DMGI Information and Risk Management Solutions.
Operating profit before exceptionals and amortisation climbed to £322 million for the year ended September 30 from £300 million, while group revenue for the period was £2.24 billion compared with £2.18 billion for the previous year.
The group said its total advertising revenues increased by 8%. Print ad revenues at its newspapers, including the Daily Mail and morning freesheet Metro, rose by 3% to £447 million.
Total display advertising was up by 6% to £350 million, with all sectors up, except motors and financial.
Retail, the group’s largest category, experienced growth of 18%, but classified advertising revenues, which have been hit hard by the internet across the newspaper industry, fell by 7% to £97 million.
The group’s digital division, Associated Northcliffe Digital, reported revenue growth of 46% to £86 milion across dedicated portals for jobs, property and motors.
Teletext made an operating loss of £4 million on revenues down by 20% to £41 million. The group hopes to reverse the decline with the rollout of Teletext Extra, a new service for the Freeview platform.
Lord Rothermere, chairman of DMGT, said the record results were the result of the group’s focus on generating new revenue streams outside of the group’s main UK newspapers from businesses such as DMGI.
“Over the past decade, our strategy has been to sustain and invest in our core UK newspaper businesses and to use the surplus cash flow and leverage of the group to acquire or develop high-growth media businesses unaffected by the UK’s advertising market and regulatory regimes,” he said.
“As a result of this strategy, over 50% of our operating profits are now derived other than from newspaper publishing.”
DMGT also confirmed the appointment of Martin Morgan as chief executive, following the retirement of Charles Sinclair. Morgan, who is currently managing director of DMGI, will step up to his new role in mid-2008.
In September, the company announced an 8% year on-year rise in total advertising revenues, with the group’s print ad revenues increasing by 2% in the 11 months to August (see DMGT Announces 8% Rise In Ad Revenues), whilst it bought 25 weekly regional newspapers from Trinity Mirror for £64.15 million earlier in the summer (see DMGT Buys 25 Trinity Mirror Regional Titles).
Related Links
