DMGT chief executive Martin Morgan admitted its financial performance has been "badly affected" by the recession as group revenues fell from £1.16bn to £1.08bn, with pre-tax profits falling year on year from £88m to a pre-tax loss of £239m over the period.
However, Morgan was optimistic that the group's continued management of its cost base, which has already included the shedding of 1,000 jobs, would help it manage the weak trading conditions in the second half of the year.
Across its national newspaper division, Associated Newspapers, which houses the Daily Mail, the Mail on Sunday and Metro, revenue fell from £508m to £455m and operating profits dropped 59% from £44m to £18m.
Circulation revenue, which makes up nearly half of Associated Newspaper's print revenue, nudged up by 0.6% to £181m, helped by cover-price rises that offset falling circulation.
The group admitted that falls in circulation of its flagship Mail titles was due to its promotional activity shifting from CD and DVD giveaways to "a sustained direct marketing campaign". The group said the move had proved successful, but was a gradual process.
Advertising revenue at Associated was down 15% to £184m, with all categories down, including display falling 16% to £150m, although this was partially offset by the performance of its free afternoon title, London Lite, where display revenue was up by 11%. DMGT did not break out the actual ad revenues or profits for the London Lite.
Its regional division, Northcliffe Media, was badly hit, with operating profits falling 85% to just £6m, with revenue down 23% to £166m.
Across Associated's digital operations, revenue was down from £216m to £166m, while operating profits fell 85% from £40m to £6m.
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