DMGT Upbeat On Improved Results
Daily Mail & General Trust has reported a increase in profits of 1.6% for the full year despite difficult trading conditions for many of its businesses.
There were mixed results from Associated Newspapers, whose titles include the Daily Mail and Mail on Sunday. Circulation revenues grew by 2.4% but advertising revenues were down 1.7%.
There was a 3.4% decline in display advertising, despite a 28% rise at the daily freesheet Metro. Overall profits at Associated fell by £10.5 million to £69.8 million as a result of restructuring at the Evening Standard.
The regional press division Northcliffe Newspapers saw profits increase by 4% to £93.7 million. Circulation and advertising revenues both grew by 3%, with property advertising alone up by 13%.
The non-newspaper division now accounts for 37% of operating profit and the management was particularly encouraged by the performance of DMG Information’s business to business companies.
Outlook The new financial year has begun promisingly with national advertising up 1.7% in October. Ad revenues rose 6% year on year at Northcliffe and other divisions continuing to make gains.
“The prospect of improved results from our newer businesses, combined with organic growth from all divisions, leads the Board to hope for a return to growth in the coming year,” the company said in a statement.
Following the recent ructions at Hollinger, which culminated in the resignation of chief executive Conrad Black, DMGT is known to be eyeing the Telegraph titles (see Black Leaves Troubled Hollinger As Predators Circle). However, any bid would be likely to attract Competition Commission attention given the company’s influence in the UK national newspaper market (see Big Guns Could Be Ruled Out Of Race For Telegraph Titles).
Shares in DMGT were down 10p at 613.5p at lunchtime today.
