Associated Newspapers reports rebound in advertising
THE company that owns the 'Daily Mail' and 'Mail on Sunday' newspapers said yesterday that advertising rebounded in the last quarter despite a slight fall in revenue overall.
Associated Newspapers said advertising revenue from its newspapers increased by 13pc in the three months up to July 4. A 46pc increase in digital advertising and 15pc growth in display ads offset a 3pc decline in revenue from classified adverts.
Retail, the largest display category, grew by 19pc in the quarter, while the company said growth was recorded across most other categories. Overall, revenue at Associated Newspapers was down 3pc for the quarter at £201m (€241m) as circulation of its two main papers remained steady.
The company added that the advertising trends had broadly continued during July but remained cautious on future performance.
The news will be seen as a fillip to the newspaper industry and follows on strong results last week from the parent company of the 'New York Times'.
In its quarterly earnings report, the New York Times Company, which also owns the 'Boston Globe', said revenue had increased for the first time in more than two years on the back of a 21pc increase in digital advertising revenue.
Associated's results were published in an Interim Management Statement from its parent, the Daily Mail and General Trust (DMGT). The company said its revenue was down 2pc on the year at £508m but was trading ahead of expectations.
"Although we remain wary about the medium-term outlook, particularly in the UK, our significant exposure to non-UK markets leaves us well positioned to continue to deliver profitable organic growth over the longer-term," said DMGT chief executive Martin Morgan.