Daily Mail profit growth pleases investors
Daily Mail and General Trust plc. (DMGT) posted a 9% increase in pre-tax profit to £291 million for the year ended September, which was ahead of analysts’ expectations. DMGT announced on Tuesday that it is now in a good position to deliver long-term growth.
The London-based company publishes the Daily Mail tabloid, Mail Online, the London Evening Standard, Metro and several others. It has extensive business activities outside the UK through DMG Information and DMG World Events.
Because of a delay in its software RMS one product, DMGT said it took a £45 million charge.
Profits were up thanks to the strong performance in its trade division, digital advertising and its consumer newspaper business.
DMGT CEO Martin Morgan said:
“DMGT has again delivered a good set of results, reflecting the benefits of our balanced and diversified portfolio of businesses. This growth was generated by the strength of our B2B companies and, within DMG Media, the resilience of the Mail businesses, the benefits of cost saving initiatives and effective portfolio management.”
Source: DMGT Preliminary Full-Year results.
DMG Media posted growth from digital revenues which more than made up for the decline in print income. MailOnline registered record revenues, reaching its £60 million target for the year.
Its B2B information division, DMG Information, reported a strong performance with underlying growth reaching 12%, and the purchase of Xceligent and SearchFlow.
DMG Events posted growth of 21% and a margin of 27%.
DMGT said its £100 million initial share buy-back program is now complete. The company said another £100 million program is now underway.