Nationals boost: DMGT announces positive trading update
“Higher national advertising revenues, together with A&N Media’s focus on cost control, will lead to significantly higher profits for the full year, compared to last year,” Daily Mail and General Trust reports this morning.
The figures show the flagship titles growing their share recently in a strengthening newspaper advertising market, and a strong digital performance by the group, whose website empire takes in property, finance, energy and education products.
“Associated Newspapers’ underlying revenues for the period were 3% higher, but 4% lower on a reported basis. Whilst underlying circulation revenues were 2% lower, both the Daily Mail and The Mail on Sunday have improved their market share in recent months. Total underlying advertising revenues were up 6%, with those from both Associated’s newspaper and pure play digital operations up by 6%.
“For the quarter to September so far, total underlying advertising revenues have risen by 13% with our newspapers up by 10% and our pure play digital activities up by 22%. There has been strong growth across most display advertising categories.”
The picture is less positive in the regional newspaper market, where DMGT owns around 100 titles.
“Northcliffe Media’s total revenues for the period were 6% lower with advertising revenues down 7% and circulation revenues down 6% compared to last year. For the quarter to September so far, advertising revenues are down 5% due principally to weakness in our East Midland titles and the widely anticipated effects of reduced public sector advertising spend.”
City analysts expect DMGT to report pre-tax profits of £240m for 2010.
The company also said today that finance director, Peter Williams, who has been with the company since 1982, intends to retire in March 2011, and will be replaced by Stephen Daintith, chief operating officer and chief financial officer of Wall Street Journal parent Dow Jones, as the new DMGT finance director.
Newspaper business models will be at the centre of the deabte at MediaTel Group’s Future of National Newspapers seminar on Friday. The panel includes Adam Freeman, Guardian News & Media; Alan Brydon, MPG Media Contacts; Dominic Carter, News International; Claire Enders, Enders Analysis and Raymond Snoddy.