Channel One Revenues Disappointing

The Daily Mail and General Trust has announced profits of £41 million for the half year ended 31 March. This is an increase of 7% over last year’s results. Trading profit increased by £1.2 million to £39.5 million, a 3% increase, despite an increase of 28% in newsprint prices.

Advertising revenues among the national newspapers over the period have increased by 9% year on year, however, Northcliffe Newspapers’ advertising revenues were stronger in the first quarter, with the second quarter “more difficult”.

Within the broadcasting area, Channel One is doing well in programming terms, “but revenues are disappointing due to the lower than expected recruitment of cable subscribers”. The group is also increasing its programme of investment in electronic publishing; Internet services for recruitment, vehicle sales and travel have already been launched and more are imminent.

With regard to the future, the group is optimistic for revenues to start reflecting increased circulations, especially since newsprint prices have levelled off. The group is however particularly investing in electronic classified advertising; this is expected to have an impact on full year results.

Daily Mail and General Trust: 0171 938 6000