Daily Mail & General Trust To Remain Family Owned
The Daily Mail & General Trust, publisher of the Daily Mail, is to remain family controlled, according to its chairman Viscount Rothermere.
According to a report in today’s Times newspaper, Rothermere has no intention of changing the company’s controversial share structure that gives his family control of the voting rights. He asked: “Why should the voting shareholders give the votes to the non-voting shareholders?”
Rothermere, who took over the chairmanship following the death of his father four years ago, went on to tell the newspaper that he believes the City understands the “dynamic” of the organisation, and that family control makes it possible to make long-term investments.
He also insisted that newspaper publishers are facing greater dangers than the advertising downturn, saying: “The biggest threat to newspapers is not the advertising revenue. It’s the circulation and the fact that gross circulation figures for newspapers have been in gentle decline for an number of years.”
In a trading statement released last week DMGT announced that it was performing resiliently in difficult trading conditions, with August sales for the Daily Mail the highest since records began (see Press Advertising Is ‘Volatile and Unpredictable’ says DMGT). However, the group says that revenue in the sector will be virtually flat in the second half of 2002 and is believed to be cutting 100 jobs to offset losses from the weak advertising market.
It has also been reported that DMGT is considering either selling its stake in radio operator GWR, or using it as a base from which to mount a full take-over bid if the Government’s Communications Bill is passed in its current form (see Draft Communications Bill Relaxes Cross Media Rules).
GWR last week sold London News Radio, which encompasses the LBC and NewsDirect radio brands, to Chrysalis for £23.5 million. The group also acquired Galaxy 101 for £12.5 million as part of a joint venture with Scottish Radio Holdings (see Chrysalis Strengthens London Offering With LNR Acquisition).
DMGT: 020 7938 6000 www.dmgt.co.uk
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