DMGT Sees National Newspaper Revenues Up 5% By Christmas
Advertising revenues at Associated Newspapers fell by 9.6% during the year to 29 September 2002, contributing to a fall in operating profit from £83 million in 2001 to £80 million this time. However, the Daily Mail and Mail On Sunday titles both increased their share of the national newspaper market, despite their cover price increases and price cuts at rival newspapers.
The regional publishing business, Northcliffe Newspapers, saw operating profits fall by 7.8%. Both circulation and advertising revenues grew a little, but were more than offset by increased investment in editorial and marketing and lower profits from contract printing. Regional advertising revenues were volatile, but overall grew by 1%.
At Associated, the sharp fall in advertising revenues was substantially offset by increased circulation revenues, a lower newsprint price and reduced costs, according to the results.
DMGT says it is having an encouraging first quarter, with the newspaper divisions particularly taking advantage of improved advertising markets.
It estimates that October/November advertising revenues for Associated will be up 5%, albeit against weak comparative figures, and for Northcliffe up 6%. Nevertheless, it remains ‘very difficult’ to predict advertising performance beyond Christmas, says the group.
Shares in DMGT were up 20p at 630p by close of trading today.
