Daily Mail’s parent company sees profits drop by over 20% amid downturn in newspaper sales
The Daily Mail’s parent company saw sales and profits slip for the year despite its online operations helping to weather the continued downturn in newspaper sales.
The Daily Mail General Trust (DMGT) saw pre-tax profits slip 21% to £145m for the year to September 30.
Meanwhile, revenues dropped 1% to £1.4bn for the year on the back of sliding sales for the Daily Mail and Mail on Sunday newspapers.
Revenues for the Mail titles dropped 4% to £406m, however this was largely offset by the continued growth of the MailOnline.
The online division saw revenues jump 14% to £140m, while the business was hailed as being “solidly profitable”.
DMGT also reported an 11% jump in sales for the Metro to £79m, as total sales across the consumer media division rose 3% to £672m.
However, the division was hampered by falling print advertising revenues, which fell 8% over the period.
The company recently reaffirmed its commitment to print news with the acquisition of the i newspaper for almost £50m last week.
Chief executive Paul Zwillenberg said the acquisition highlights the firm’s strategy to invest in “high quality, content-led businesses”.
DMGT reported a slump in business-to-business revenues, which fell 4% to £738m after disposals in the property information and energy information sectors.
Zwillenberg said: “We have continued to deliver successfully against our three strategic priorities of increasing portfolio focus, improving operational execution and maintaining financial flexibility.
“We will continue with our active portfolio management approach, focusing on those assets that have the potential to drive good returns through strong cash flow generation and growth in capital value.
“We are now in the next phase of the group’s transformation, optimising our business through targeted and disciplined investment whilst maintaining significant financial flexibility to enhance shareholder value.”
Shares in the company moved 1.4% higher to 809p in early trading on 5 December.
We know everyone is suffering under the Tories - but the Canary is a vital weapon in our fight back, and we need your support
The Canary Workers’ Co-op knows life is hard. The Tories are waging a class war against us we’re all having to fight. But like trade unions and community organising, truly independent working-class media is a vital weapon in our armoury.
The Canary doesn’t have the budget of the corporate media. In fact, our income is over 1,000 times less than the Guardian’s. What we do have is a radical agenda that disrupts power and amplifies marginalised communities. But we can only do this with our readers’ support.
So please, help us continue to spread messages of resistance and hope. Even the smallest donation would mean the world to us.
Leave a ReplyYou must be logged in to leave a comment.Join the conversation
Please read our comment moderation policy here.