Advertising slump at regional arm hits 'Daily Mail' revenue
THE parent company of the 'Daily Mail' and 'Irish Mail on Sunday' said revenues declined in the first half of its financial year amid continuing struggles at its regional newspaper arm.
In a trading update, the Daily Mail and General Trust (DMGT) said Northcliffe Media suffered an 8pc decline in revenue on a 27pc drop in recruitment advertising and a 12pc fall in notices.
Some 317 staff have been laid off from Northcliffe, which publishes 115 newspapers across Britain and eastern Europe.
DMGT said revenues at Associated Newspapers, which publishes the 'Mail' titles, were up 2pc last year despite circulation revenues being 2pc lower.
Advertising, which strengthened in October and November, weakened in December and continued to do so, said the company.
"For the quarter to March so far, total underlying advertising revenues are 2pc higher than last year, with newspaper operations up 1pc and digital-only businesses up 4pc. Whilst overall growth was lower than the 6pc growth experienced in the first quarter, performances are set against tougher comparatives, given the improvement in the markets of a year ago," DMGT said.
Overall, the company said it expected operating profits to show "some improvement" on last year despite "continued uncertainty over the medium-term outlook and the external economic environment, and fragile consumer confidence in the UK".