Daily Mail & General Trust (DMGT) has warned of an impending downturn in the regional advertising market, reflecting weakness in the housing and recruitment markets.
The publisher made its claim as it delivered full year results, with finance director Peter Williams claiming that, while national advertising appears to be “holding up” its regional equivalent has been showing signs of slowing since October.
DMGT currently operates regional newspapers across the country and enjoys subsequent large profits from its regional division, Northcliffe Newspapers. The division notched up earnings of £100.5 million during the last financial year, up 7% on 2003.
The company reported that advertising revenues for its regional newspapers had grown by 5.9% during 2004, with totals for recruitment up by 10% and property improving by 11% on the back of a buoyant housing market. However, the company claimed that declining advertising in the Motoring sector reflected the overall marketplace which, despite a number of initiatives, declined by 1%.
The group’s warnings follow similar trepidation by the Advertising Association earlier this year. The advertiser body revised its advertising expenditure forecast for 2005 downwards from 4.9% to 4.4% earlier this year, as signs of weakening consumer confidence began to take hold (see AA Downscales Its 2005 Ad Expenditure Forecast).
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