28th May 2020 10:26
(Alliance News) - Daily Mail & General Trust PLC on Thursday said its revenue nudged lower, but profit was boosted by disposals during a first half which turned sour towards the end due to the Covid-19 pandemic.
In the six months to March 31, revenue was 0.6% lower at GBP683 million from GBP687 million. Pretax profit surged 60%, however, to GBP80 million from GBP50 million.
The profit jump was due to disposal gains, the Daily Mail newspaper owner said. DMGT booked GBP41.1 million in profit from disposal and closures, these were related to Inframation AG and BuildFax Inc, units in the company's Property Information segment. Gains from disposals were just GBP900,000 in the year prior.
DMGT nudged its dividend 2.7% higher to 7.5 pence from 7.3p.
"DMGT delivered a solid performance in the first half of the year, reflecting a strong first five months of trading followed by one month of weakness due to the Covid-19 pandemic," Chief Executive Officer Paul Zwillenberg said.
The CEO noted the Consumer Media, UK Property Information and Events & Exhibitions segments have been "significantly more impacted" by the Covid-19 outbreak.
"Consumer Media is experiencing a particularly difficult advertising market as well as reduced circulation volumes due to the UK's lockdown restrictions," the company said.
In April, revenue in the Consumer Media segment was 33% lower annually on an underlying basis, and DMGT estimates it shrunk 30% in the four weeks to May 24.
The Events segment meanwhile has cancelled or postponed all events between March and August.
"Some relatively minor events are still scheduled to be held in September but this may change," the company said.
CEO Zwillenberg added: "The severity and duration of the Covid-19 crisis remains unclear but DMGT has a robust balance sheet, access to significant funding and a diversified portfolio. This gives me, and the board, confidence that we will weather the current storm and withstand a sustained period of global economic uncertainty."
The stock was 4.9% lower at 713.00p each in London on Thursday morning.
By Eric Cunha; ericcunha@alliancenews.com
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