Third Quarter Trading Update

23 July 2015

Daily Mail and General Trust plc ('DMGT')

Third Quarter Trading Update

This trading update covers the third quarter of DMGT's financial year, the three month period to 30 June 2015. It describes the Group's financial position and performance during the period, updated to the latest practicable date.

Challenging print advertising and financial market conditions; 2015 outlook towards lower end of market expectations~

· Underlying# revenue decline for the third quarter of 1% on last year

· Underlying# growth of 1% from our B2B businesses with Euromoney continuing to face challenging financial market conditions

· Underlying# revenue decline of 5% from dmg media, primarily due to a difficult quarter for the UK print advertising market

· Continued active portfolio management with acquisitions for dmg information

· Good progress with £100 million share buy-back programme; £71 million now acquired

· Net debt decreased by £67 million to £687 million, in line with expectations

· Results for the Full Year are now likely to be towards the lower end of market expectations~

+ Adjusting for the timing of Euromoney's events would result in underlying growth rates of +1% for DMGT Group, +3% for B2B and -1% for Euromoney for the 9 month period, growth rates in the quarter would be unchanged.

Business to Business (B2B)

· Risk Management Solutions (RMS): revenues grew by an underlying# 1% in the quarter, despite conditions in the reinsurance market remaining challenging. Reported revenues benefited from the stronger US dollar. In line with earlier updates, RMS(one) remains on track to be released in stages and to select clients, starting with the first high-definition model, European Flood, by the end of the calendar year. This is scheduled to be followed by the release of two additional high-definition models and the 'Exposure Manager' module in the first half of 2016, as well as the release of the 'Risk Modeler' module later in 2016. Given the approach of staged releases to select clients, incremental revenues from RMS(one) are expected to develop gradually during FY 2016, with a greater impact on RMS revenues during FY 2017.

· dmg information: revenues grew by an underlying# 5% in the quarter. Reported revenues benefited from the stronger US dollar. Genscape, the energy business, continued to deliver double digit underlying# growth. The property information portfolio, which includes Landmark, SearchFlow, EDR, Trepp, Xceligent, Buildfax and SiteCompli, delivered mid-single digit underlying# growth. Underlying# revenues at Hobsons, the education business, declined by 2%, although increased by 7% after adjusting for the non-recurrence of a major project completed in September 2014. dmg information's underlying# revenue growth rate is still expected to increase in the final quarter but the Full Year underlying# revenue growth is now likely to be a high-single digit percentage rather than the 10% previously guided to.

· dmg events: delivered strong underlying# growth of 16% in the quarter with the successful transition of the Global Petroleum Show (GPS) from a biennial to an annual format and a number of events held in Dubai.

· Euromoney Institutional Investor: revenues declined by an underlying# 5% in the quarter. Euromoney released its trading update on 22 July 2015 and highlighted that trading conditions have shown no signs of improvement, particularly the pressures on the fixed income, currency and commodities activities of investment banks. The recent negative trends for events and advertising revenues are expected to continue into the final quarter.

dmg media

· dmg media: revenues declined by an underlying# 5% in the quarter. Circulation revenues were down 3% due to lower volumes, although both Mail Newspaper titles continued to grow market share* with the Daily Mail and The Mail on Sunday achieving 23.4% and 22.1% respectively. The cover price of The Mail on Sunday was increased by 10 pence to £1.60 on 5 April 2015.

There was a marked deterioration in the UK print advertising market in the quarter and total underlying# advertising revenues across dmg media were down 6% compared to last year, with newspapers down 13%, newspaper companion websites (mainly MailOnline) up 7% and other digital advertising (including Wowcher and Elite Daily) up 24%. Reported advertising revenues were further adversely impacted by the disposal of the digital recruitment business, Evenbase, which occurred in stages during 2014.

· MailOnline's digital advertising revenue growth of £1 million (8%) partly offset the £7 million (15%) decline in print advertising revenues at the Daily Mail and the Mail on Sunday during the quarter. Underlying# advertising revenues across the Mail businesses as a whole, for print and digital combined, were consequently down 9%. MailOnline's global monthly unique browsers in June 2015 stood at 211 million, up 42 million or 25% on last year, and average global daily unique browsers were 13.7 million, an increase of 25% on last year.

· Wowcher continued to perform strongly with revenues increasing by 14% compared to the same quarter of the previous year. The business now has a substantial database of 7.6 million subscribers, 38% more than in June 2014.

For the three weeks since 28 June 2015, dmg media's quarter end, total underlying# advertising revenues for the business are 6% lower than last year. Given the weaker UK print advertising environment, dmg media's underlying# revenues for the Full Year are now expected to show a low-single digit percentage decline rather than the stable performance previously guided to.

Net debt / financing

Net debt at 30 June 2015 was £687 million, down from £754 million at 31 March 2015. In the period there were net acquisition payments of £22 million, interest payments of £14 million and £9 million was used to buy back DMGT shares. Good progress has been made with the £100 million share buy-back programme announced in September 2014 with total repurchases to 22 July 2015, including purchases during the prior financial year, of £71 million.

Active Portfolio Management

dmg information has continued to be acquisitive during the second half of the year, notably in the property information sector with small investments in early stage businesses. In July 2015, dmg information's SiteCompli acquired Empower, which is also a New York based property compliance business, and dmg information acquired a minority stake in Liases Foras, an Indian business. This followed the minority investments in Propstack, another Indian start-up, and Funcent, a Chinese property information business, in the third quarter.

Outlook

Given the weaker than anticipated UK print advertising market for dmg media and the more challenging market conditions for B2B, the outlook for the Group's Full Year results is now towards the lower end of market expectations~.

A conference call will be held with City analysts at 8.00 am on 23 July 2015. The dial-in number is +44 (0)20 3364 5721; conference code: 9083107. A replay of the call will be available on DMGT's website at www.dmgt.com.

Future trading updates

The Group will be holding an Investor Briefing on 9 September 2015, with presentations on dmg information and RMS.

DMGT's next scheduled announcement of financial information will be a trading update, provisionally scheduled for 24 September 2015.

Following a review of the frequency of financial reporting, DMGT will not be scheduling a pre-close trading update in March 2016.

About DMGT

DMGT is an international business built on entrepreneurship and innovation. We bring together leading companies and talented people to provide businesses and consumers with high-quality analysis & insight, information, news and entertainment.

Notes

# Underlying revenue is revenue on a like-for-like basis, adjusted for constant exchange rates, disposals, closures, non-annual events occurring in the current and prior year and acquisitions. For dmg information, underlying growth includes the year-on-year organic growth from acquisitions. For dmg events, the comparisons are between events held in the year and the same events held the previous time. For Euromoney, no adjustments are made for the timing of events but acquisitions are excluded completely. For dmg media, underlying comparisons exclude Villarenters, Metro Play and Evenbase, which were disposed of last year and this year, and distribution services revenue, which ceased last year. Underlying growth includes the year-on-year organic growth from Elite Daily, which was acquired in January 2015. dmg media's underlying revenues only include the profit but not the gross-up, equivalent to the cost of sales, from low margin newsprint resale activities.

~ Current City analyst expectations for FY 2015 range from £1,824 million to £1,926 million for revenues, from £275 million to £292 million for adjusted profit before tax and from 55.0 pence to 61.4 pence for adjusted basic earnings per share with a consensus of £1,873 million, £285 million and 58.7 pence. Adjusted results are from continuing and discontinued operations and are stated before exceptional items, other gains and losses, impairment of goodwill and intangible assets, pension finance charges, premiums on bond redemptions and amortisation of intangible assets arising on business combinations.

† dmg media's results are to Sunday 28 June 2015 and are compared to the same thirty nine week period and thirteen week quarter of the prior year.

* Daily Mail's 23.4% compared to 22.3% last year and The Mail on Sunday's 22.1% compared to 21.4% last year. Circulation market share figures are calculated using ABC's June 2015 and June 2014 National Newspapers Reports and excluding digital subscribers.

The average £:$ exchange rate for the nine months was £1:$1.55 (against £1:$1.65 in the same period last year).

This trading update is prepared for and addressed only to the Company's shareholders as a whole and to no other person. The Company, its Directors, employees, agents and advisers accept and assume no liability to any person in respect of this trading update save as would arise under English law. Statements contained in this trading update are based on the knowledge and information available to the Group's Directors at the date it was prepared and therefore facts stated and views expressed may change after that date.

This document and any materials distributed in connection with it may include forward-looking statements, beliefs, opinions or statements concerning risks and uncertainties, including statements with respect to the Group's business, financial condition and results of operations. Those statements and statements which contain the words "anticipate", "believe", "intend", "estimate", "expect" and words of similar meaning, reflect the Group's Directors' beliefs and expectations and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and which may cause results and developments to differ materially from those expressed or implied by those statements and forecasts. No representation is made that any of those statements or forecasts will come to pass or that any forecast results will be achieved. You are cautioned not to place any reliance on such statements or forecasts. Those forward-looking and other statements speak only as at the date of this trading update. The Group undertakes no obligation to release any update of, or revisions to, any forward-looking statements, opinions (which are subject to change without notice) or any other information or statement contained in this trading update. Furthermore, past performance of the Group cannot be relied on as a guide to future performance.

No statement in this document is intended as a profit forecast or a profit estimate and no statement in this document should be interpreted to mean that earnings per DMGT share for the current or future financial years would necessarily match or exceed the historical published earnings per DMGT share.

Nothing in this document is intended to constitute an invitation or inducement to engage in investment activity. This document does not constitute or form part of any offer for sale or subscription of, or any solicitation of any offer to purchase or subscribe for, any securities nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract, commitment or investment decision in relation thereto. This document does not constitute a recommendation regarding any securities.

Daily Mail and General Trust plc

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www.dmgt.com

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