21st Nov 2013 09:52
LONDON (Alliance News) - Daily Mail & General Trust PLC hiked its dividend after it posted roughly flat full-year results Thursday. The company saw exceptional costs decline and posted growth in its business-to-business segment, despite declines in consumer media revenues resulting from the disposal of regional newspaper group Northcliffe Media.
The company raised full-year dividend to 19.2 pence, up 6.7% from 18.0 pence in the previous year.
In the year ended September 30, the company posted a pretax profit of GBP203 million, flat from the previous year. Revenue was GBP1.753 billion, roughly flat from GBP1.747 billion. The company disposed of Northcliffe Media in December, and as a result only three months of trading were included in the full-year result.
Daily Mail said it saw GBP40.3 million of exceptional operating costs in the recent year, including GBP6 million of earn-out costs for acquisitions. These costs included GBP17 million from the depreciation and impairment of property, plant and equipment, relating to the closure of its printing facilities in Stoke and Surrey Quays. Also included were GBP22 million of costs for reorganisation, redundancy and consultancy costs, primarily in its dmg media segment.
However, the exceptional operating costs were lower than the GBP76.5 million seen last year.
Adjusted profits, which include the company's disposed operations Northcliffe Media and joint venture dmg radio Australia, were GBP282 million in the recent year, up from GBP255 million.
In the company's business-to-business segment, revenue grew 6.8% to GBP960 million from GBP899 million in the previous year. Risk Management Solutions revenues increased 7.4% to GBP175 million from GBP163 million, boosted by contract renewals at its Natural Catastrophe and Underwriting Solutions business. For 2014, Daily Mail expects this segment to produce revenue growth to be in the mid-single digits.
In the company's dmg information segment revenues grew 16% GBP293 million from GBP253 million in the previous year. Property Information revenues were up 18% and Education, Energy and Financial revenues were up 14%. Daily Mail said it expects this segment to produce underlying growth between 10% to 15% in the full year 2014.
In its dmg events segment, revenues declined 2.2% to GBP87 million from GBP89 million, due to the disposal of conference business Evanta in September 2012. Digital marketing had a challenging year, seeing a 5% decline in underlying revenues due to the disruption of its New York ad:tech event by Hurricane Sandy. For the full year 2014 the company expects this segment to generate revenue growth between 10% and 15%.
Euromoney Institutional Investor, which reports its results separately, saw a 2.8% rise in revenues to GBP405 million from GBP394 million in the previous year.
Consumer media was down 21% at GBP842 million from GBP1.06 billion in the previous year as results were reduced by the disposal of Northcliffe Media. In dmg media, which comprises of the brands Daily Mail, The Mail on Sunday, Mail Online, Metro, Evenbase and Wowcher, revenues declined 6%.
The company said this was due to the creation of Zoopla Property Group in 2012, which it now accounts for as a joint venture, and the disposal of its central and eastern European operations in the first half of the year.
The Daily Mail and Mail on Sunday revenues declined 5% as print advertising revenue and circulation revenue both fell. However, the brand's market share was 22% for the year despite a five pence rise in price. MailOnline grew 48%, and had 146 million monthly users.
Revenues in Metro declined 10% due to a comparative bump caused by last year's London Olympics. Digital recruitment business Evenbase saw revenues grow 35%, boosted by the acquisition of Jobrapido and Broadbean.
Daily deals website Wowcher grew revenues by 184% from the previous year, and Daily Mail said it hopes to achieve a break-even run rate for Wowcher by the the full year 2014.
Daily Mail said that it had entered the new financial year with its businesses performing well and in line with expectations. The company's business-to-business operations are expected to make good progress. However it cautioned that consumer revenues would be largely dependant on the advertising environment. Although first quarter consumer trading had been satisfactory to date, Daily Mail said it remains cautious about the segments medium term outlook.
"We continued to refine and optimise our portfolio of businesses during the year with further strategic bolt-on acquisitions, notably within dmg information and Euromoney, and disposals, including Northcliffe Media and dmg media's central and eastern European consumer assets," said Chief Executive Martin Morgan in a statement. "We believe these changes have improved the overall quality and growth prospects of the group, and we look forward to another year of good progress."
Shares in the Daily Mail were trading up 2.8% at 863.80 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright © 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
DMGT.L