Newspaper publisher Daily Mail & General Trust (LON:DMGT) reported group revenue for the six months to 4 April of £974m, down 10% from £1.085bn the prior year. Adjusted profit before tax rose 42% to £110m. Operating profit was up 26% on the equivalent figure for the previous half year at £144m, an underlying increase of approximately 20%. This increase was due to margin improvements across the portfolio, but particularly in consumer businesses.
The group's B2B companies increased their overall profit by 11%, an underlying increase of 15%. The profits of A&N Media were significantly higher, up 132%, due to cost efficiencies and the elimination of loss-making activities. As a consequence, 71% of this half year's operating profit was generated from B2B, compared to 81% for the prior half year. Adjusted profit before tax rose 42% to £110m. The statutory profit before tax for the period was £36m, after charging £37m of amortisation charges and impairment losses and £37m of net exceptional charges. Net debt was reduced by £31m, due to strong cash flow management and disposals, while the company's dividend was increased by 4% to 5p per share.
Daily Mail said it expects to achieve growth in the rest of the year from B2B, driven by solid subscription revenues and good cost control. In UK local media operations, the impact of cost reductions remains beneficial and advertising trends are gradually improving. The group said it currently expects to achieve good growth in earnings per share for the full year.
Martin Morgan, the group's chief executive, said: "Trading in the first half of the year was ahead of our expectations. Our business-to-business companies have delivered excellent profit growth, demonstrating strength and resilience across the portfolio. Our UK consumer businesses have achieved a sharp improvement in profitability reflecting the actions taken to reduce costs and to eliminate loss-making activities, but also thanks to an improved advertising market. We remain focused on driving profitable organic growth across the group. The strong half year results reflect our focus on execution as well as the benefits of DMGT's diversified international portfolio of market-leading businesses in both B2B and consumer markets. Whilst we remain cautious about the outlook, particularly in the UK, we are increasingly well positioned to weather current economic uncertainties and to take advantage of improved conditions as they materialise."
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