DMGT confident it can make progress in 2012

DMGT has reported pre-tax profit fell 15% in its last financial year but says cost cutting and a growing contribution from its B2B businesses will help it make progress in 2012.

/x/i/n/metrodailymail160.jpg

Pre-tax profit came in at £125m on group revenue up 1% to £1.9 billion for the year to 2 October.

The results show that the group’s B2B arm continues to grow its share of contribution to profit, up to 74% from 67% last year, while more than half of the group’s operating profits were again derived from outside the UK. Its businesses include Euromoney and Risk Management Solutions.

The UK consumer business has been hit by the weak advertising environment and A&N Media saw profit fall 20% for the year. The national newspaper arm is down 2% and the regional newspaper arm Northcliffe down 10%.

Looking ahead, the advertising revenue bookings for Associated for the first seven weeks of its new year are down 2%. The publisher expects circulation revenues to be boosted by the impact of the Monday to Friday cover price rise for the Daily Mail that was introduced in July and for the Saturday edition in October 2011.

Overall, Associated expects to achieve low single digit revenue growth due in part to the Olympics and further cost efficiencies.

Northcliffe has already seen a fall of 7% in ad revenue in the new financial year but is now focused on building new revenue opportunities from its print and digital products.

Chief executive Martin Morgan says: “DMGT has delivered a solid set of results. Notwithstanding the challenging trading conditions, the underlying revenues of Associated Newspapers were unchanged.

“Furthermore, Mail Online is now a global name in news and on course to become the world’s biggest English language newspaper website. Whilst first quarter trading to date has been reasonable, we remain cautious about the medium term outlook, given continuing external uncertainties, particularly for UK advertising.

“Our strategy remains focused on innovation-led growth, talent development and improved operating effectiveness. We are a more focused and financially stronger Group today, which makes us confident that we can make real progress in 2012.”

engageawardsweb

Can you demonstrate a brilliant use of media? Then enter the Marketing Week Engage Awards by clicking here.

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