26th Mar 2020 10:00
(Alliance News) - Daily Mail & General Trust PLC on Thursday said it performed in line with expectations in its first five months of trading in the current financial year, but its outlook has since been hampered by the Covid-19 virus crisis.
In the five months to February 29, the Daily Mail newspaper owner reported revenue fell 3%, though it was up 3% on an underlying basis.
Underlying revenue uses constant currency, does not include disposals or closures, and makes adjustments for timing of revenue.
In the Consumer Media division - which houses newspapers the Metro and the Mail on Sunday, as well as MailOnline - revenue climbed 3% during the five-month period, or 1% on an underlying basis. Advertising boosted reported revenue by 10% during the five-month stretch.
In its Business-to-Business unit underlying revenue was 4% higher, though there was an 8% fall in reported revenue. Daily Mail said the reported decline was partly due to the disposal of Genscape.
Back in August, the company said it was to sell the energy industry data unit to US firm Verisk Analytics Inc for USD364.0 million.
Daily Mail & General said: "At this stage, the severity and duration of the impact of Covid-19 and the escalating measures to control it are unclear, with a range of possible outcomes. Although there has been limited impact on the group's performance to date, we have started to see the effects, notably on our Events & Exhibitions and Consumer Media businesses, and the financial performance in Financial 2020 is now likely to be lower than the existing guidance.
"We consider it prudent to suspend the guidance at this stage and will provide an update at the half year results on May 28.
The company added that it has GBP363 million of gross cash, and GBP374 million in undrawn bank facilities.
Looking ahead, DMGT expects advertising revenue in the Consumer Media unit to be lower than previously expected, especially in print. Circulation is also expected to fall, as consumers will be less likely to buy newspapers due to government-imposed lockdown measures.
"The Events and Exhibitions business, dmg events, which accounted for 8% of DMGT's revenues in financial 2019, will be affected by Covid-19, particularly if more exhibitions are postponed or cancelled, although the adverse impact on profits is expected to be partially offset by insurance coverage," the company noted.
Shares were 0.3% higher at 660.92 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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