14th Jul 2011 07:00
14th July, 2011 Daily Mail and General Trust plc (`DMGT') Statement re: Daily Mail Cover Price and Trading Update
Associated Newspapers, the national media division of DMGT, announces that it is increasing the price of the Daily Mail Monday to Friday editions from 50p to 55p from Monday 18th July. The price of the Saturday edition and that of The Mail on Sunday remain unchanged.
The circulation of the Daily Mail has significantly out-performed the market throughout the last year; however, the continuing high cost of newsprint means it is necessary to increase the cover price of the newspaper. This is the first increase in the price of the Monday to Friday Daily Mail since April 2008.
In its Half Yearly Financial Report for the six months ended 3rd April, 2011, released on 26th May, DMGT reported that trading during April and the first three weeks of May had seen advertising revenues at Associated 5% below last year, despite the Royal Wedding and the fact that Easter had fallen within the period this year. DMGT also highlighted the expectation that the nervous consumer and retail market would continue through the summer and expressed caution about the outlook for the full year due to the volatile and uncertain market conditions faced by our UK consumer businesses.
Advertising revenues at Associated for the thirteen weeks to 3rd July, 2011 have been 7% below last year, with those for the five weeks of June down 9% against the backdrop of the fragile consumer economy which has meant continued uncertainty for the retail sector. Looking ahead, while the outlook remains uncertain, the July to September comparatives are less demanding. The cover price increase will mitigate some of the impact of the recent decline in advertising revenues.
Other than Associated, all wholly owned parts of the business are continuing to perform in line with previous guidance as reported on 26th May, 2011. Separately, Euromoney Institutional Investor PLC will be releasing its third quarter interim management statement (IMS) tomorrow. DMGT will release its third quarter IMS on 26th July, 2011.
Media Enquiries:
Susanna Voyle/ Matthieu Roussellier, Tulchan Communications 020 7353 4200
Daily Mail and General Trust plc Northcliffe House, 2 Derry Street, London, W8 5TT Tel 020 7938 6000 Fax 020 7938 4626 www.dmgt.co.uk Registered in England and Wales No. 184594 Not for public release until 7am on 14 July, 2011
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