Q1 revenue up 3.0 per cent at Daily Mail and General Trust

Underlying group revenue rose 3.0 per cent to 503m pounds in the three month period to December 30th at Daily Mail and General Trust, an interim management statement for the company has disclosed.

Underlying group revenue rose 3.0 per cent to 503m pounds in the three month period to December 30th at Daily Mail and General Trust, an interim management statement for the company has disclosed.

The company reported underlying growth of 8% from its business-to-business businesses and 4% underlying growth at its Risk Management Solutions business.

Underlying revenue declined by 4% at Associated Newspapers - since renamed as dmg media- and the improved profit margin was described as having been driven by cost efficiencies.

Newspaper advertising declined in the quarter while digital advertising increased, reflecting a wider trend seen in the media industry.

In the case of the former revenues were down by 9% in the quarter but improved as the quarter progressed, with December 2012 advertising stable year-on-year.

Digital advertising was up 18% and the group reported that it had put up the price of its weekday print newspaper on February 4th. The price of the Monday-to-Friday published Daily Mail was increased to 60p from 55p previously.

Despite increased investment in digital products, dmg media's profit margin for the quarter increased year-on-year due to the rationalisation of printing facilities that took place during 2012. The group reported that headcount had reduced by 3% to 3,179 individuals.

"In line but encouraging"Research analysts at Credit Suisse described the first quarter results as being "in line but encouraging".

"We believe the group's results released this morning are encouraging, with the group's business-to-business (B2B) division continuing to provide good solid growth more than offsetting weakness from its consumer division. Given the group reiterated full year guidance we do not believe consensus will move on the back of today's release however do beliecve there is cause for optimism."

Credit Suisse retained its rating for the group of "outperform" and listed a target price of 700p.

The group's share price rose 3.64% to 626p at 09:38 on Wednesday morning.

MF

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021
Nuclear power might never be popular – but now looks a good time to invest
Commodities

Nuclear power might never be popular – but now looks a good time to invest

Nuclear power gets a very bad press, but it is the ultimate renewable energy source. Interest in it is perking up again, says John Stepek. Which means…
9 Apr 2021
House prices: from boom to even bigger boom
House prices

House prices: from boom to even bigger boom

UK house prices have risen to new to record highs, says Nicole Garcia Merida. Demand continues to outpace supply, but continued low interest rates, th…
9 Apr 2021