Newspaper group delivers an increase in half-year profits

A recovery in hard-hit advertising markets and previous cost cutting helped Daily Mail & General Trust (DMGT) deliver a 42 per cent leap in underlying pre-tax profits to 110m in the six months to April 4. The group – whose portfolio includes the Mail titles and around 100 regional papers – said underlying advertising revenues rose 1 per cent to 181m in its Associated Newspaper nationals division, driven by a strong performance from the Metro free-sheet.

A quarter-by-quarter breakdown highlighted the improvement in the advertising market, with the operation's ad revenues up 11 per cent in the last three months, against a 7 per cent fall in the first – a trend that has continued into May, it said.

Swingeing cost cuts offset a fall in circulation revenues within Associated Newspapers, with overall revenues down 6 per cent.

DMGT took a 28m restructuring charge after axing another 680 staff within its A&N Media consumer-facing business during the half-year – 8 per cent of the national and regional newspaper workforce.

Action included the closure of the London Lite afternoon freesheet and most of the television activities of Teletext, while it also closed another regional printing plant at Plymouth in February.

These actions helped underlying earnings in the consumer business, including regional papers, soar 127 per cent to 58m in the half-year.

The group added it was expecting to drive national newspaper profits up further over the remainder of the year, although it

remains "cautious" on the outlook for advertising.