DMGT records improvement in print ad revenues

LONDON - The Daily Mail & General Trust has revealed national print advertising revenues are showing signs of recovery, but are still down 6% on the year, as it reported full year pre-tax profits were up 9% to £237m.

At DMGT's national newspaper division Associated, ad revenues fell 6% to £436m in the year ended October 1. However, it said recent trends have been more encouraging, with display revenues up 1% in September.

The overall 6% fall shows improvement on the earlier part of the year when in the five months to February display advertising was down 10% and classified by 11%.

Overall across Associated Newspapers, including the Daily Mail and Mail on Sunday, circulation revenues were 2% higher than last year.

At its regional newspaper division Northcliffe, ad revenues fell by 8% to £276m and the picture is gloomier. Although DMGT said that recent recruitment trends have been more encouraging, with year-on-year declines of less than 5%, it added that other categories show little sign of improvement.

Associated Northcliffe Digital is now making revenues of £90m with an operating profit margin of 20% and its range of sites is growing strongly. However, DMGT admitted its national newspaper websites were finding profitability "elusive".

In August, Associated launched free newspaper London Lite against News International's thelondonpaper. It revealed nothing about the title other than that trading so far has been ahead of expectations. However, the Evening Standard's circulation has suffered an 8% fall.

DMGT pointed out that its substantial B2B and information publishing businesses are taking the strain from its consumer businesses. Its print newspapers generated 53% of group operating profit, compared with 60% last year.

Group revenues grew 2% to £2.18bn. Statutory pre-tax profits were up 59% to £311m but this included the gains from disposals of businesses such Aberdeen Journals.

DMGT provided an adjusted pre-tax profit figure, excluding those gains, showing a 9% rise to £260m.

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