DMGT will axe 1500 and beat costs target

Media group Daily Mail and General Trust expects to axe 1500 staff this year, with two thirds of them going from regional newspapers arm Northcliffe.

The group, which sold control of the Evening Standard last month, told investors it now expects to beat its own target of cost savings of £100 million, and still believes it will hit City targets of profits of £189 million in the year to September.

Advertising revenues at Associated Newspapers and Northcliffe worsened with falls of 24% and 37% respectively in the five months to the end of February. However, finance director Peter Williams said there were now signs key areas such as recruitment and property were starting to stabilise.

He added that business-to-business, which accounts for 70% of DMGT's revenues, was still doing well. Revenues there are 15% ahead of the previous year.