Daily Mail & General Trust has yet to feel any impact on its advertising revenue as a result of the recent credit crisis or the recent hikes in interest rates but remains "wary" of a slowdown in the consumer advertising market.
The publisher of the Daily Mail reported that total advertising growth across its Associated Newspapers division increased 8 per cent, despite a 20 per cent decline in Teletext revenue and a decrease in circulation at its flagship titles.
Print advertising revenue increased 2 per cent despite the circulation dip, but the performance was primarily driven by a 78 per cent rise in its digital revenue, which was bolstered by recent acquisitions in the online space.
The company said that since it last updated the market in May, its newspaper division has continued to grow its advertising revenue and moved to reassure investors that the recent market turmoil had yet to affect its prospects. Like most media companies, DMGT's outlook is subject to economic conditions in the general economy.
The media company said: "We are to date seeing no slowdown in consumer advertising arising from higher UK interest rates, though we are wary about the impact of these rises on advertising generally and additionally of home information packs on property advertising. Similarly there has been minimal discernible impact to date on any of our businesses from the turmoil in the credit markets, although we will of course be watching this as we enter our new financial year."
DMGT also made progress in the regional advertising market, which has been weak over the past year. It said that over the past 12 weeks, advertising revenue across its regional titles has risen by over 2 per cent, driven by digital revenue and the strength of the recruitment and property advertising markets. The company recently purchased a number of regional newspapers from its rival Trinity Mirror and said that the integration is proceeding well.
The company said that despite the circulation dip at the Daily Mail and The Mail on Sunday, it had gained market share over the 11 months to the end of August. It added that its investment in a new print site in Didcot and improvements to its Surrey Quays plant are nearing completion.
Like many of its competitors, the publisher has made progress in the business-to-business market, a division it has recently moved to augment by buying out George Little Management, an exhibitions business. The company recorded a 15 per cent uptick in revenue across its business information business.Reuse content