Mail group reports 2% rise in revenue

Published on Wednesday 6 February 2008 22:47

NEWSPAPER publisher Daily Mail & General Trust yesterday reported a better-than-expected start to its financial year, saying revenue rose 2 per cent in the three months to the end of December.

The firm, which publishes the Daily Mail and Mail on Sunday as well as the free newspapers Metro and London Lite, reported strong growth in its activities outside traditional newspaper publishing, such as its B2B DMG Information arm.

It added that advertising revenue grew by 4 per cent overall, despite a dip at its regional newspaper publishing division, Northcliffe Media.

Revenue at the Associated Newspapers unit for the 13 weeks to 30 December – DMGT's first quarter – rose by 2 per cent to 250 million.

Chairman Viscount Rothermere warned it was "too early" to predict full-year prospects, although he was pleased with the start the company had made.

He added: "Most of our businesses continue to perform well, and above our expectations, despite the troubles in the financial and property markets."

But UBS analysts warned that soft advertising across regional papers remained a problem for the group.

They said: "At first sight, it looks good. However, there are signs of weakness creeping in."