DMGT beats the advertising blues
DESPITE an extremely difficult advertising market, Daily Mail and General Trust, owner of London's Evening Standard and Mail titles and websites including This Is Money and This Is London, is confident that its national newspapers division, Associated Newspapers, can produce a strong profit performance in the coming year.
Unveiling a 7% fall in pre-tax profits at £177.5m for the year to end-September, finance director Peter Williams said today: 'Given the current economic climate and the effects of the events of 11 September, things still look pretty robust. Advertising has taken a big fall but it's not as bad as some people had expected.'
Associated's advertising revenues fell by 16% in October and November, the Evening Standard's recruitment advertising suffering most.
Price increases on the Mail titles had no effect on rising circulation. Newsprint prices, up 12% last year, are expected to fall in the New Year. Associated's operating profit rose by 13% to £82.9m.
Northcliffe Newspapers, the regional division, increased operating profit by 5% to £97m. Recruitment advertising revenues fell by 1% in October and 4% in November but overall revenues were up by 2% in both months. Total group turnover rose by 6% to £1.96bn.
The dividend rises by 8% to 8.6p while earnings slipped 3% to 29.4p a share. Net debt at the year-end rose by £90m to £875m after a net £185m spent on acquisitions.
Charles Dunstone, founder and chairman of Carphone Warehouse, is joining the board as a non-executive director.
