DMGT reports mixed results

DMGT has reported a 3% drop in advertising revenue for its national newspaper division in the first three weeks of July, while overall print ads fell 12% in the quarter to 2 July.

According to DMGT’s Interim Management Statement, for the third quarter of the group’s financial year, revenue was up to £495 million, an increase of 2% on last year.

The newspaper group said it continued to see “good underlying growth” from its B2B businesses, though national advertising revenues were weak, “reflecting the fragile UK consumer economy”.

The Mail titles continued to improve their market share during the period, while the company focused on “operational efficiency”. Full year earnings are expected to show modest growth, while DMGT’s net debt was reduced by £29 million to £820 million.

Martin Morgan, chief executive, said: “Trading in the third quarter was mixed. There was continuing strength in B2B from our international portfolio of market-leading businesses with all divisions performing in line with our expectations. In contrast, conditions within our consumer businesses have been tough with advertising revenue weak over the quarter.

“We still expect to achieve some growth in earnings per share for the full financial year, driven by the continued strength of our B2B operations which reflects the benefits of DMGT’s diversification strategy, despite the volatile and uncertain market conditions faced by the UK consumer businesses.”

Read the full Management Statement here.