Mail Online ads surge lifts DMGT

DAILY Mail and General Trust has reported rising revenues and left its forecast for annual profit unchanged, despite a difficult advertising market.

DMGT, which owns the Daily Mail, said underlying revenues rose by 2pc thanks in part to the strength of its business-to-business division, where sales climbed 8pc. Advertising revenue in Mail Online, which became the world’s largest newspaper website in January, surged by 69pc.

The rise in income from companies advertising online helped newspaper publishing division Associated Newspapers beat expectations to record underlying revenues down 1pc.

Circulation revenue within Associated was up 4pc, as its newspapers gained market share. DMG Information, which houses education business Hobsons and property division Landmark, enjoyed a strong rise in underlying sales, up 12pc.

Like-for-like revenue within DMG Events rose by the same amount, stripping out a reduction in turnover due to the sale of US trade show business GLM. Local newspaper division Northcliffe Media recorded a 2pc rise in circulation revenue, but saw underlying income from advertising fall 7pc.

DMGT (down 20.8p at 423.8p) expects half-year profit to be lower than last year and predicted a £40m one-off expense largely related to reorganisation costs relating to the move of printing facilities to Thurrock, in Essex.