Daily Mail and General Trust sees profits crash

The Daily Mail and General Trust media group has reported profits down almost 50% after first-half advertising revenues were hit by the recession.

The Daily Mail and Mail on Sunday owner says pre-tax profit for the six months to March 29 slid to £77m, down from £144m a year earlier. Revenues across the group fell 7% in the first-half to £1.1bn.

Revenues from the group’s Associated Newspaper division, which includes the two national titles as well as London free newspaper London Lite, decreased 10% to £455m while local media division Northcliffe Media was among the group’s hardest hit divisions, down 23% to £166m.

Losses in its newspaper division were partly offset by gains at business to business publisher Euromoney Institutional Investor, up 4% on last year.

Martin Morgan, chief executive of the group says continued “management of its cost base” will help the group “offset the effect of continued weak trading conditions” in the second-half.

The group has already started a cost-cutting programme, announcing it was axing 1,000 jobs at its regional newspapers in March.

DMGT’s results follow recent revenue declines at rival newspaper groups Trinity Mirror, which saw ad revenues slump 30% in the first four months of the year while Johnson Press posted a 34% dip.

DMGT recently sold the majority interest in London Evening Standard to Russian oligarch Alexander Lebedev.

Like rival traditional newspaper publishers it is grappling with how to increase its online revenues.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here