24th May 2018 10:37
LONDON (Alliance News) - Daily Mail & General Trust PLC boosted its interim dividend Thursday as reported profit jumped despite revenue falling as the media group continues to focus its portfolio through disposals.
For the six months ended March, reported pretax profit widened to GBP113.4 million from GBP40.9 million the year prior. This was despite revenue falling to GBP746 million from GBP794 million the year before.
Adjusted pretax profit - before exceptional items, impairments and other charges - fell to GBP103 million from GBP105 million the year before. On an adjusted pro forma basis - adjusting for Euromoney Institutional Investor PLC ceasing to be a subsidiary - pretax profit rose to GBP103 million from GBP96 million the year prior.
In December 2016, Daily Mail raised GBP315.0 million after it reduced its stake in FTSE 250-listed Euromoney to 49% from 67% prior.
Daily Mail proposed an interim dividend per share of 7.1 pence, up from 6.9p the year prior.
"DMGT's performance in the first half was in line with our expectations as we continue to transition the group and execute against our three strategic priorities," Daily Mail Chief Executive Officer Paul Zwillenberg said. "We have delivered continued, broad-based growth across our B2B businesses and a strong performance from our Consumer Media business in challenging market conditions."
"We have made good progress with increasing our portfolio focus, notably through the disposal of EDR," Zwillenberg added. "Most recently, the expected disposal of our stake in ZPG PLC is a clear demonstration of our long-term approach to value creation. As a result of this portfolio activity, our balance sheet will be strengthened considerably, enhancing our financial flexibility for balanced capital allocation. We have also continued to implement a series of performance improvement initiatives across the group which are starting to gain traction.
Earlier in May, Zoopla property portal-owner ZPG accepted a GBP2.2 billion cash takeover offer from Silver Lake Management Co V LLC. Daily Mail expects to receive GBP640 million in potential proceeds on completion of the deal.
In April, Daily Mail received GBP146 million in proceeds from the sale of EDR, property due-diligence business.
"Guidance for the full year remains unchanged," Zwillenberg said. "Although progress during the period was encouraging, we remain cautious about the outlook as we continue to transition the group during challenging market conditions for some of our businesses. However, the board remains confident that the group's strategy and strong balance sheet will, over the medium term, deliver consistent earnings growth to underpin DMGT's long-standing commitment to sustainable annual real dividend growth."
Shares in Daily Mail were 6.7% lower at 714.00 pence on Thursday.
Related Shares:
DMGT.LERM.LZPG PLC