DMGT reports a 42% pre-tax profits increase
The Daily Mail and General Trust has reported a 42% year on year increase in adjusted pre-tax profits to £110 million in the six months to 4 April.
The Daily Mail publisher also increased its operating profits by 20% to £144 million over the six month period.
In a statement released today, DMGT said profitability for its UK operation almost doubled year on year due to “an improved advertising market”. “Our UK consumer businesses have achieved a sharp improvement in profitability,” DGMT’s chief said.
The publisher’s national newspaper revenues were up 11% year on year in the three months to 4 April, although total regional ad revenue was down by 5%. The group’s total revenue fell by 10% year on year to £974 million.
Overall, the Daily Mail publisher reported a 42% increase in adjusted pre-tax profits to £110 million, before amortisation and exceptional charges.
However, taking into account a £37 million amortisation charge and a £37 million exceptional charge, the group’s pre-tax profits were £36 million.
DMGT’s parent company A&N Media, meanwhile, reported a 132% year on year profit increase due to its cost-saving strategy, which has included cutting staff numbers by 8%, closing down its printing operation in Plymouth, axing the London Lite freesheet and shutting down most of Teletext.
Associated Newspapers, the national newspaper division, suffered a 6% year on year decline in revenues to £427 million. However, Associated’s operating profits were up by 135% to £42 million. Circulation revenues were down by 3% to £175 million, while ad revenues were up by 1% year on year to £181 million, mainly due to a strong performance by London morning freesheet Metro.
DMGT’s regional newspaper operation in the UK and Central Europe Northcliffe Media witnessed a 9% year on year fall in revenues to £150 million, while operating profits were up 121% to £14 million.
Northcliffe’s UK operating profits rose by 262% to £12.3 million. However, revenues were down by 7% to £132 million, with advertising revenues falling 9% to £93 million in the period.
Associated Northcliffe Digital, meanwhile, enjoyed a 5% revenues increase to £41 million.
DGMT’s chief executive, Martin Morgan, said: “Trading in the first half of the year was ahead of our expectations. Our UK consumer businesses have achieved a sharp improvement in profitability reflecting the actions taken to reduce costs and to eliminate loss-making activities, but also thanks to an improved advertising market.
“While we remain cautious about the outlook, particularly in the UK, we are increasingly well positioned to weather current economic uncertainties and to take advantage of improved conditions as they materialise.”