Adverts downturn disappoints Daily Mail

DAILY Mail & General Trust yesterday warned that its newspapers’ advertising markets had weakened further but reassured the City that full-year results would be ‘‘ satisfactory’’ due to strength at its radio and business publishing units.

DMGT’s Associated Newspaper unit saw advertising revenues edge up just 1.7pc in the past 11 months, with display advertising revenues rising only 0.4pc.

The owner of the Daily Mail and the Evening Standard has been cutting costs across its UK consumer-facing operations in an attempt to counter softer demand for advertising.

While advertising revenues at its free commuter paper Metro were up 19pc, they rose just 0.2pc at the Evening Standard and fell 2.5pc at the Daily Mail and 1.3pc at the Mail on Sunday.

‘‘We don’t have much visibility looking forward and in terms of September we have not seen any improvement,’’ said Peter Williams, the DMGT fi nance director.

However, he added: ‘‘ We are always disappointed to see any revenue falls but we are continuing to outperform the market.’’

Circulation at Associated in the six months to August was up 12pc, helped by last December’s launch of the giveaway Standard Lite.

Mr Williams accepted that the Lite was ‘‘light’’ on news’’ but added: ‘‘It’s free... what do you expect?’’ He denied rumours that the company was planning to scrap the title.

DMGT claimed to have seen no impact on Metro or the Standard from the recent launch of rival City A.M., the London fi nancial freesheet. ‘‘They are giving it away at the exits of Tube stations,’’ said Mr Williams. ‘‘ I’m not sure how many people have an hour to read the paper as they walk from the station to the office.’’

DMGT’s Northcliffe Newspapers unit, which publishes regional papers, saw recruitment ad revenues plummet 14pc, following similarly negative reports from rivals Johnston Press and Trinity Mirror. Full-year revenues at the Teletext TV information service are also expected to fall 15pc from last year due to the exodus of viewers from analogue to multichannel digital television.

The company plans to take a charge of £15m to cover the costs of restructuring at Northcliffe and Teletext, which will be substantially offset by gains from the sale of shares in Reuters Group and of other assets.

Despite the disappointing newspaper figures, DMGT shares slipped just 5 to 668½p. Analysts maintained their full-year forecasts on expectations of a stronger contribution from the businesstoand radio operations. DMG Radio full-year revenues are expected to climb 26pc following acquisitions in Australia. BERND KAMMERER/ AP PHOTO