DMGT warns of profit fall this year

DMGT, owner of the Mail newspapers, Metro and a number of business services has warned that full year group operating profit will be lower than last year, dragged down by weak advertising revenues in its newspapers.

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The group’s revenue is up 1% on last year for the 11 month period to the end of August while its B2B division saw growth on an underlying basis of 9%. Its B2B operations include Euromoney Institutional Invester.

Chief executive Martin Morgan says: “DMGT has delivered a solid revenue performance over the year to date, driven by continued strength in our B2B operations offset by difficult market conditions for our consumer business.”

He adds that despite a focus on operational efficiency the “weak consumer advertising environment” has hurt profit.

The consumer businesses A&N Media dropped by 3% on an underlying basis, although DMGT claims some improvement in national advertising teens since June.

Associated Newspapers, which includes the national newspapers, saw underlying revenues down 1% year on year and underlying circulation revenues down 3%. Total underlying advertising revenues fell 1% but newspaper operations dropped 2%. The print ad revenues fell 4% and digital rose 54%.

The regional arm, Northcliffe Media, saw ad revenue drop 10% and circulation revenue fall 7%.

Morgan adds: “Going forward our focus will remain on driving organic growth, operational and financial efficiency and pursuing an active portfolio management approach.”

During the period News International closed the News of the World newspaper, temporarily giving a boost to the circulation of the Mail on Sunday.

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