DMGT enjoys 5% revenue rise to £497m

The Daily Mail & General Trust posted a 5% increase in advertising revenues for its national newspaper division in the three months to 2 January.

DMGT said trading was in line with expectations, with revenue for the period up 3% (or 5% on an underlying basis) to £497 million.

However, the group’s regional operation continued to struggle – Northcliffe Media, which owns more than 100 regional titles, recorded a 6% decline in revenues to £59 million.

The company has cut 4% of its total headcount – 332 staff – from its newspaper operation A&N Media, though 265 of those work for Northcliffe.

Total revenues at Associated Newspapers, which owns the Daily Mail and Mail on Sunday, were up 1% to £211 million – a 6% year on year increase on an underlying basis.

Total underlying advertising revenues for the newspaper operation were up 5%, with print up 3% and digital up 73%. Display advertising rose 4% during the period. Revenue from digital-only activity at the national newspaper division increased 11% year on year.

At Northcliffe, ad revenue dropped as recruitment revenues fell 26% and public notices slipped by 13%. Circulation revenues were down 3%.

Digital revenues at the regional operation were marginally lower following a 21% decline in recruitment, which was offset by strong growth in property and motors.

Publishing costs at the company have been reduced by 6%, while headcount is down 8% year on year. DMGT’s net debt sits at £910 million.

Martin Morgan, DMGT’s chief executive, said: “Trading in the first quarter has been in line with our expectations, despite our consumer businesses being hampered by the poor weather in December.

“Overall our B2B operations are experiencing good momentum and consumer media continues to benefit from national advertising growth, though we have limited visibility.

“We remain cautious about the medium-term outlook, given the external economic environment. Our focus will remain on investment to drive organic growth, while continuing to seek to improve operational efficiency and to reduce debt.”

Read the Interim Management Statement here.