27th Mar 2014 09:35
LONDON (Alliance News) - Daily Mail and General Trust PLC Thursday maintained its outlook for its full-year results as it traded in line with expectations in the five months to the end of February. However, it cautioned that the strengthening of sterling will hit its reported figures for the current year.
The company noted that its reported result would depend on the average currency exchange rate for the year, and as a result would be hampered by the strengthening of sterling against the US dollar.
In the five months, the company saw underlying revenue growth of 6%, although on a reported level revenues declined 1%.
In the company's Risk Management Solutions business revenue growth was 5%. The company will release its RMS(one) software in April, and said that although revenues from this product will not materialise until the financial year 2015, lower product amortisation and operating costs mean the segment's operating profit for 2014 is still expected in line with previous guidance - between GBP45 million and GBP50 million.
In its DMG information segment revenues rose 40%, or 14% on an underlying level, boosted by acquisitions. However, DMG events declined 24% on a reported basis.
In Daily Mail's Consumer segment, the company's DMG media business saw a decline of 1%, as stronger advertising revenues were offset by declines in circulation revenues. The decline of traditional print revenues was partly offset by a cover price increase in February 2013, Daily Mail said.
Total underlying advertising revenues across the business were up 5% as digital growth offset declines in print advertising. MailOnline's digital advertising revenue rose 51% to GBP23 million from GBP15 million. Print advertising revenues declined to GBP84 million from GBP86 million at the Daily Mail newspaper and Mail on Sunday during the twenty one weeks to February 23.
MailOnline's monthly unique browsers in February were 166 million, up 50% from the previous year.
Daily Mail noted that in the four weeks since February 23, total underlying advertising revenues for DMG media are 7% down from the previous year, partly due to Easter falling later in this year.
The company said that Zoopla Property Group, in which it has a 52.6% interest, is continuing to explore strategic options.
Shares in Daily Mail were trading down 5.4% at 912.00 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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