Daily Mail owner suffers slump in print ads
Daily Mail & General Trust (DMGT) said the print advertising decline was a “significant deterioration” on a 5 per cent fall in the first half of the year to September 30.
It said over the coming year its newspaper underlying sales will range between -2 per cent and 2 per cent as falling circulation and print advertising are balanced against growing digital revenue.
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Hide AdThe group’s comments come as it reported full-year adjusted pre-tax profit down 4 per cent to £281m, after also facing “challenging conditions” at its business information arm Euromoney.
It said operating profit at its business to business division, which includes Euromoney, tumbled 12 per cent to £206m, after falls in revenues from investment banking and commodities clients.
The group added that trading in the first quarter to date at its dmg media unit, which contains its newspapers, “has been satisfactory, although we remain cautious about the medium term outlook given continuing external uncertainties, particularly for UK print advertising”.
Shares fell by 7 per cent during trading and analysts cut full-year forecasts for the group’s current financial year.
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Hide AdChief executive Martin Morgan said: “The challenging market conditions in the UK print advertising market and those facing Euromoney in the investment banking and commodities sectors are likely to have an adverse impact on full-year 2016 results.”