DMGT regionals hit falling ad revenues

by Staff, Brand Republic 22-May-08, 10:30

LONDON - Advertising revenue at the Daily Mail & General Trust has risen by 4% at its national newspapers, but its regional titles have been hit by tough trading conditions, with ad revenue down by 3.8%.

DMGT issued a half-yearly report today showing that revenue across the board was up by 5% for the six months ending March 30 to £1.2bn, and adjusted pre-tax profits were up by 7% to £144m.

However, it warned that with the UK expecting tough economic conditions for the second half of the year, the growth figure for the full year was likely to be lower than for the first half.

Northcliffe Media, DMGT's regional newspaper division, which publishes newspapers including the Hull Daily Mail and Croydon Advertiser, was hit by the property downturn and general economic wariness. Revenues from property ads fell by 12.7%, recruitment advertising was down 4.7%, and ads for motors were down by 9.2%.

National newspaper division Associated Newspapers, publisher of the Daily Mail and the Evening Standard, saw ad revenues rise 4% to £242m, with a 10% decline in classified ads offset by a rise in display.

Viscount Rothermere, chairman of DMGT, said: "Most of our businesses have performed well despite the conditions in the global financial and property markets. The economic outlook remains uncertain but the group's strong cash flow allows continued investment to ensure our businesses achieve their full potential.

"We continue to believe that our strategy of creating a diversified portfolio of market-leading operations across both business and consumer media products leaves us well positioned to deliver long-term growth."