DMGT reports revenue down 15 per cent
Daily Mail & General Trust recorded a year-on-year fall in overall revenue of 15 per cent in the thr
DMGT's national newspaper businesses Associated Newspapers recorded a 12 per cent fall in revenue in the last three months of 2009 to £208 million for the period.
The company said the underlying revenue decline was just six per cent when it excluded losses from the London Evening Standard, of which it owns almost a quarter, and London Lite, which it closed in November.
The Daily Mail and the Mail on Sunday both recorded improved circulation revenue, partly as a result of the introduction of a subscription and home delivery service for the papers, DMGT said.
Underlying advertising revenue at Associated fell eight per cent in the three months to the end of last year with display down eight per cent, classified down ten per cent and digital up four per cent.
DMGT's regional newspaper business, Northcliffe Media, recorded a slide in total revenues of 15 per cent in the period to £73m. Of this, UK revenues were down 14 per cent and revenue from the much smaller international side of the business was down 23 per cent.
UK advertising revenue for the quarter was 13 per cent lower at Northcliffe than the same period last year, compared with a year-on-year decline of 18 per cent in the previous quarter.
DMGT said trading conditions at Northcliffe were "challenging" particularly for recruitment advertising which was down 33 per cent.
In addition, retail declined by seven per cent, property was down five per cent and motors fell by eight per cent. But January has seen a continuing improvement in advertising trends.
UK digital revenue for the quarter was 11 per cent higher than the same period in 2008 but circulation revenue was eight per cent down.
DMGT revealed that staff numbers were down by 334 (or four per cent) due to reductions at Harmsworth Printing, Northcliffe Media and in Associated Newspapers through the closure of London Lite.
Publishing an interim management statement this morning, the company said the revenue drop was in line with its expectations but that it had seen adjusted operating profits similar to those of the previous year.
Martin Morgan, DMGT's chief executive, said that the new calendar year had started well: "but we remain cautious about the outlook for the rest of the year, particularly in the UK".
Revenues from the Group's B2B operations in the quarter were £186m, 20 per cent lower than for the corresponding period in 2008. Risk Management Solutions' revenues rose
Total revenue at DMGT, owner of the Daily Mail and Northcliffe Media regional newspaper business, stood at £482m for the period, however on a like-for-like basis the fall in revenue was eight per cent.
The company's World Media business recorded a dip in revenue of 47 per cent to £31m.
Revenue from DMGT's Euromoney business fell by 16 per cent to £71m.
Oliver Luft writes for Press Gazette
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