Sharewatch: DMGT Falls On Competition Concerns
Daily Mail & General Trust was seen under pressure yesterday following reports that rival Northern & Shell, publisher of Express Newspapers, is today meeting with the Office Of Fair Trading to try to break Associated Newspapers’ distribution monopoly of the London Underground. If successful the move could knock ad revenues at the Metro group, whilst paving the way for a successful launch of Express Newspapers new London title (see Desmond Plans To Launch New Evening Paper For London). The stock was seen down 1.60%.
Elsewhere, Trinity Mirror was seen in focus after releasing its financial results, which revealed that price cuts at the Daily Mirror cost the group £21.8 million in 2002, driving down circulation revenues by 7.6% (see Bailey Moves To Stop Mirror-Sun Price War As Costs Hit £22m). The stock was seen up 1.82%.
Reuters was also under pressure on concerns that it is loosing market share, after reports that rival information group, Thomson, told investors it had beaten the group to lucrative investment banking deals on direct competition, rather than reduced prices. The stock was seen down 3.75%.
The closing prices of media company shares on Thursday were:
