Daily Mail ad revenue continues to rise

The recovery at Daily Mail & General Trust's national newspaper division has continued with total ad revenues up 13% year-on-year in the three months to 4 June helped by an impressive 46% surge in digital ad revenues.

DMGT, which owns the Daily Mail and about 100 regional titles, saw revenues at its consumer operation rise 4% year on year on an underlying, or like-for-like, basis to £274m.

Associated Newspapers, the national newspaper operation, saw overall revenues fall 3% to £301m. However, in terms of advertising income, underlying revenues at the division were up 13% year on year.

Display advertising was up 15%, digital advertising up 46%, while classified decreased by 3%. Retail, the largest display category, grew by 19%. The company said that overall revenue from the division's "pure play digital activities" rose by 16%.

Circulation revenues were up a fraction at 0.7% due to the timing of Easter.

Northcliffe Media, home to DMGT's regional newspaper operation in the UK and central Europe, saw total revenue fall by 4% to £66m. Advertising fell by 4% year on year. Retail and recruitment advertising revenue were down 6% year on year, however property revenues grew 9%. Digital revenues at the division were up 10%, driven by property and motors ad revenue. Circulation revenues fell 5%.

DMGT said that the company as a whole had performed ahead of expectations in the quarter, with total underlying group revenue from its consumer and business-to-business operations up 6% year on year to £508m for the period.

"Trading in the third quarter has continued to reflect the generally positive trends in our international business-to-business and UK consumer media businesses, although we remain wary about the medium term outlook, particularly in the UK," said Martin Morgan, chief executive of DMGT. "Our significant exposure to non-UK markets leaves us well positioned to continue to deliver profitable organic growth over the longer term."

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