Metro Success Eats Into DMGT Profits

London Metro, the free morning daily launched by Associated Newspapers last year (see Associated Newspaper Delays Launch Of London Daily), has broken into profit but the launch of its sister titles around the UK knocked profits of its parent company Daily Mail and General Trust (DMGT). Pre-tax profits before exceptionals and goodwill for the six-month period ending 2 April 2000 came in at £72.4m compared to £86.2m for the same period last year.

Associated recently reached a franchise agreement with Trinity Mirror to publish newspapers bearing the Metro name in Birmingham, Glasgow and Edinburgh, but lost the right to use the name in Manchester, where the group clashed with the Guardian Group last year (see Associated Loses Court Appeal Over Metro Title). The group will continue to publish in the city under the name News North West.

Net projects were also blamed for a dip in profits within DMGT. The group’s online interests include recently-launched recruitment website, Big Blue Dog, women’s portal Charlotte Street and the This is… series of regional websites.

The company is looking forward to a bright year however. “Underlying trading for most of the group’s activities is strong and, assuming this continues, a good trading result for the year is prospect. There is likely also to be continued spending on new ventures which will be charged against profits, although the first half cost of launching regional editions of Metro will not be repeated,” the group said in a statement today.

The Daily Mail increased its circulation by 1% during the six-month period to the end of March, but the Mail On Sunday slipped 0.5% compared to the same period last year.

Turnover for the group increased by 16% at £863.1m and operating profit was up 17% to £134.4m.

DMGT: 020 7938 6000