"As a result of this and the weak third quarter to June, display advertising revenues for the second half of the year are estimated to finish 8% lower than the previous year," the publisher of the Daily Mail and Evening Standard said in a statement.
Media companies in the UK and the US have had a tough time this year because of the advertising slowdown. These troubles were compounded by the terrorist attacks on the US, which saw publishers clearing pages to allow space for pages of coverage of the disaster.
The company said that although circulation increased in the short term, "this was more than offset in revenue terms by a reduction in advertising revenues from the expected levels".
Despite the warning, shares in DMGT climbed 8.1% to £40.50 on the news that circulations at the Daily Mail and Mail on Sunday continued to grow despite a cover price rise at the daily title in June.
Yesterday, Euromoney Institutional Investor, which is 70% owned by DMGT, warned that profits would be flat as a result of having to cancel a number of conferences and training courses in New York following the terrorist attacks.
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