DMGT suffers setback as advertising sales slide
Friday 27 May 2011
The owner of the Daily Mail suffered a surprise fall in advertising revenues at its national and regional titles last month and warned of the ongoing effects of the "volatile and uncertain" markets this year. Shares in Daily Mail & General Trust (DMGT) closed more than 7 per cent lower after the company released its half-yearly financial report yesterday.
The fall was prompted by an uncertain outlook for the consumer business from the chief executive Martin Morgan, who revealed that advertising for April and the first three weeks of May had fallen below last year's. He said the company "remains cautious about the outlook for the full year due to the volatile and uncertain market conditions faced by our UK consumer businesses".
Advertising revenues at its national titles fell 5 per cent despite Easter and the Royal Wedding during the period. At its regional arm, advertising was 10 per cent lower.
The fall in advertising revenues were offset by strength in its business-to-business operations. Total revenues at the group rose 3 per cent to £991m in the six months to 3 April. Pre-tax profits were up a fifth to £121m. Mr Morgan called the performance "satisfactory", adding that it reflected "the benefits of DMGT's diversified international portfolio". The board added that despite the performance of the consumer businesses it expects to grow in the full financial year.
Revenues at Associated Newspapers, which includes the Mail titles, fell 2 per cent although operating profits rose 18 per cent to £46m. The Mail's online operation continued to grow, with almost 66 million unique visitor numbers in March, 68 per cent higher than a year earlier.
The group's regional arm, Northcliffe Media fared less well, with revenues falling 9 per cent to £120m and operating profits plunging 35 per cent to £8m. Advertising revenues were down 9 per cent while circulation revenues fell 6 per cent.
- 1 Disney heiress Abigail disowns her share of family profits in West Bank company
- 2 The secret report that helps Israel hide facts
- 3 'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
- 4 Ebola virus: UK health officials issue warning to doctors as experts admit the outbreak 'is not under control'
- 5 Ross Burden dead: MasterChef and Ready Steady Cook star dies at age 45 after suffering from cancer
'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
Richard Dawkins says 'date rape is bad, stranger rape is worse' on Twitter
Ross Burden dead: MasterChef and Ready Steady Cook star dies at age 45 after suffering from cancer
Zayn Malik on Israel-Gaza: One Direction singer bombarded with Twitter death threats after posting #FreePalestine
MH17 crash: Black boxes show plane suffered 'massive explosive decompression' following shrapnel hit
The secret report that helps Israel hide facts
A day in the life of Vladimir Putin: The dictator in his labyrinth
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
- < Previous
- Next >
iJobs Money & Business
£350 - £400 per annum + competitive: Orgtel: Project Manager (specializing in ...
£25000 per annum + OTE £40,000: SThree: Orgtel are seeking Graduate Trainee Re...
£45000 per annum + Benefits: Ashdown Group: ** HR Business Partner - Senior H...
£28000 - £32000 per annum + Benefits: Ashdown Group: PA / Team Secretary - Mat...