29th Nov 2018 09:34
LONDON (Alliance News) - Daily Mail & General Trust PLC said Thursday it swung to profit in its most recent financial year, as a result of lower exceptional operating costs and a drop in impairment charges.
The media company's shares declined, however, as it said print advertising and circulation revenue is expected to decline. Shares in DMGT were down 10% at 618.50 pence on Thursday.
In its financial year that ended September 30, the tabloid newspaper owner and online media company posted a GBP691.9 million profit, swinging from a GBP112.3 million loss the year before.
DMGT's exceptional operating costs, including impairment of its internally generated and acquired computer software, as well as property, plant, and equipment came to GBP78.9 million, significantly below the GBP166.2 million such hit taken the year prior.
Moreover, the firm's amortization and impairment of acquired intangible assets, as well as goodwill impairment, shrank considerably to just GBP15.8 million from GBP158.2 million.
DMGT's annual dividend per share was raised 2.6% to 23.3p from 22.7p.
Revenue, however, fell 8.3% to GBP1.43 billion from GBP1.56 billion year-on-year.
Looking ahead, the company is expecting its digital advertising revenue to grow and believes this will offset an expected continued drop in print advertising.
Corporate costs are likely to be less than GBP45 million in financial 2019 from GBP47 million in financial 2018. Further cost reduction is expected for DMGT's 2020 financial year.
Circulation revenue is forecast to continue its decline, having dropped 5% in the most recent year, although there will be some revenue benefit from in increase in the cover price of Monday to Friday editions of the Daily Mail newspaper to 70p from 65p.
The company is forecasting a mid-single digit decline in underlying 2019 financial year revenue from its Consumer Media business, having already fallen 4% in financial 2018.
Chief Executive Paul Zwillenberg said the performance in the recent year was in line with the firm's expectations "despite some challenging trading conditions".
"Our vision for DMGT's future remains unchanged; we seek to deliver profitable growth across a diversified portfolio, driven by our long-term approach to investment and increased focus on innovative technologies," said Zwillenberg.
"The board remains confident that the group's strategy, supported by our 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," he added.
Related Shares:
DMGT.L