Daily Mail owner resists ad downturn

by Jacquie Bowser, Brand Republic 23-Jul-08, 09:10

LONDON - Daily Mail and General Trust, owner of the Daily Mail newspaper, has reported a 5% year-on-year rise in its third-quarter revenues, as its national newspapers offset ad revenue declines with circulation gains and its business divisions continued to grow.

Associated Newspapers, publisher of the Daily Mail, Evening Standard and Metro newspapers, registered a marginal 0.4% rise in total revenues to £243m.

Circulation revenues, which make up nearly half of Associated's print revenues, were 4% higher than the same period last year, reflecting the increase in the Daily Mail's cover price in April from 45p to 50p.

Total advertising revenues in the period dropped by 3%, with strong growth in digital ad revenues offsetting a fall in print revenues.

Northcliffe Media, the company's regional newspaper division, was worst hit. Its total revenues for the quarter were down 7% compared to the same period last year. Excluding acquisitions and disposals made in the prior year, underlying revenues were down 5% to £102m.

This fall came on the back of weakening ad revenues, which were 11% lower than the same period last year. All major ad categories fell, particularly in property, which dropped 25%.

However, DMGT's overall revenues increased due to continued growth in its business-to-business divisions.

DMG Information, which invests in and manages business-to-business information companies, reported a 6% rise in third quarter revenues to £78m.

The division continues to experience strong trading except in its two principal property information companies, Landmark (UK) and EDR (US), which are affected by the current market conditions.

DMG World Media, the company's events division, grew its revenues by 43% in the period to £49m.

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DECLAN GANE - 23/07/2008

“What more evidence do you need - live event marketing is simply the vehicle of the moment,” exclaims Event Industry Alliance, CEO Trevor Foley. “As marketers seek more ‘bang for their buck’, it’s the ability of live event marketing to engage and deliver brand experiences direct to targeted audiences that is moving money from old-school media channels.” Foley continues, “DMGT Chairman, Viscount Rothermere commenting on these results said the group’s strategy is to create a ‘diversified international portfolio’ of B2B as well as consumer products. So along with Channel 4’s investment in the ‘Taste of..’ food and drink festivals and its development of Grand Designs Live, the Guardian Media Group’s purchase of EMAP’s ‘jewel in the crown’ B2B events arm, Thomson Reuters recent partnership with event organisers Infor-media Russia, media owners that ignore the live event marketing genre, do so at their peril,” concludes Foley.