Channel One's future in doubt

Daily Mail and General Trust is undecided about the future of Channel One, the newspaper group's loss-making cable channel. The company, owner of the Daily Mail newspaper, said yesterday that Channel One was "a bit of an experiment", and its operations were still being reviewed.

Although the City TV station, which launched in London in 1994, reduced its losses for the half year to the end of March, DMGT confirmed its future was under discussion.

Turnover in the core newspaper businesses climbed 28 per cent to pounds 53.7m, reflecting strong growth in classified advertising, buoyant circulation and a drop in newsprint prices. Group profits before tax and exceptional items rose by 27 per cent to pounds 46.9m for the period.

Derek Terrington, media analyst at Teather & Greenwood, said that while the results were satisfactory, there were always elements of unpredictability in newspaper groups because of heavy promotional activity.

The Daily Mail had slashed its cover price in Scotland and the Evening Standard in London had offered readers price reductions with coupons, Mr Terrington said. He left his pre-tax profits forecasts for the full year unchanged at pounds 127m.

Northcliffe Newspapers, the group's regional newspaper subsidiary, benefited from an increase in recruitment advertising. However, Nicholas Jennings, DMGT's group accountant, warned recruitment advertising was likely to dip.