Daily Mail Group hit by fall in print advertising

Shares in the Daily Mail’s parent company have slumped 9% after it reported a fall in print advertising revenues at its flagship national newspapers.

Advertising revenues at the Daily Mail and Mail fell £7m, or 15%, in the three months to the end of June. Although their digital counterpart, MailOnline, recorded an 8% increase in advertising turnover it was not enough to offset the print decline.

Daily Mail General and Trust described the print advertising performance within its media division as a “marked deterioration” and warned that the outlook for the group’s full-year results was now “towards the lower end of market expectations”. .

The market expects DMGT to report revenues of between £1.82bn and £1.93bn, with adjusted pretax profit of between £275m and £292m, according to the company.

In its latest trading update, the DMGT said: “There was a marked deterioration in the UK print advertising market in the quarter and total underlying advertising revenues across dmg media were down 6% compared to last year, with newspapers down 13%, newspaper companion websites (mainly MailOnline) up 7% and other digital advertising (including Wowcher and Elite Daily) up 24%”.

“Reported advertising revenues were further adversely impacted by the disposal of the digital recruitment business, Evenbase, which occurred in stages during 2014,” it added.

Revenue from circulation was also down by 3% as sales of the Daily Mail - which increased its cover price by 10p to £1.60 in April – and the Mail on Sunday fell. The company said the two titles increased their market shares to 23.4% and 22.1% respectively. Users of MailOnline increased with global monthly unique browsers in June 2015 reaching 211m, up 25% on last year.

In its business-to-business operation, B2B, which includes its Euromoney Institutional Investor arm, revenues fell by 5% as the operation felt the pinch of banks pulling back their fixed income, currency and commodity (FICC) businesses which traditionally fuel its growth. “The recent negative trends for events and advertising revenues are expected to continue into the final quarter,” the company said.

Powered by Guardian.co.ukThis article was written by Jill Treanor, for theguardian.com on Thursday 23rd July 2015 12.40 Europe/Londonguardian.co.uk © Guardian News and Media Limited 2010


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