DMGT: Full year profit will be lower than last year

Daily Mail & General Trust (DMGT) expects its full-year operating profit to be lower than last year due to “the weak consumer advertising environment”.

In a trading update, released today, the company announced a revenue increase of 1% year on year (up 2% on an underlying basis) in the 11 month period to the end of August 2011.

The Daily Mail owner saw strong underlying growth from its B2B businesses, up 9% during the period. However, difficult conditions in consumer businesses saw revenues fall 3% – though the company said there has been “some improvement in national advertising trends since June”.

“DMGT has delivered a solid revenue performance over the year to date, driven by continued strength in our B2B operations offset by difficult market conditions for our consumer businesses,” said Martin Morgan, chief executive. “Despite our continued focus on operational efficiency, the weak consumer advertising environment means that full year Group operating profit will be lower than last year.

“We expect some growth in earnings per share compared to last year, given lower finance and tax costs, but at the lower end of market expectations. Going forward our focus will remain on driving organic growth, operational and financial efficiency and pursuing an active portfolio management approach.”

Read the full trading update here.