Year End Results

DMGT delivers another year of growth

Preliminary Full Year Financial Highlights:

· DMGT underlying# revenue up 5%; reported revenue up 3%

· Underlying operating profit* up 15%; margin of 17%

· Adjusted profit before tax* a record £291m, up 9%

· Good performance from B2B; underlying revenue and profit up 8%; decision to delay RMS(one), consequent £45 million impairment charge in the year and revenue and profit impact in FY 2015 as highlighted in September

· dmg media underlying revenue in line with last year; underlying profit up 28%, margin up from 10% to 12%, driven by cost efficiencies

· Active portfolio management throughout the year, including Zoopla Property Group IPO, Evenbase disposal and DIIG(E) acquisition

· £100 million initial share buy back programme completed; new £100 million programme under way

· Net debt increased by £30 million to £603 million; net debt/EBITDA ratio of 1.5; £106 million bond buy back

· Earnings per share* up 12% to 55.7p; full year dividend increased by 6% to 20.4p

Martin Morgan, Chief Executive, said:

"DMGT has again delivered a good set of results, reflecting the benefits of our balanced and diversified portfolio of businesses. It is pleasing that adjusted profit before tax has increased by 9%, to a record level, and earnings per share by 12% despite the adverse impact of the stronger pound during the year. This growth was generated by the strength of our B2B companies and, within dmg media, the resilience of the Mail businesses, the benefits of cost saving initiatives and effective portfolio management.

Our international B2B companies have increased their underlying revenues and profits by 8%. We took a difficult decision in the year to delay the launch of RMS(one), although we are confident that the new programme of staged releases to a small number of clients during 2015, with availability to a broader client base towards the end of the year, will benefit the business in the long-term. Following the delay, there was an impairment of the RMS(one) asset value in the year. In addition, the increase in RMS's costs, ahead of RMS(one) revenues being generated in 2016, will adversely impact DMGT's profits in 2015.

Our consumer business, dmg media, yet again demonstrated its resilience with the growth from digital revenues offsetting the decline in print revenues. dmg media delivered a 28% underlying increase in operating profit as a result of the rationalisation of printing sites last year, ongoing cost saving measures and Wowcher moving towards profitability.

We have continued to refine and optimise our portfolio of businesses with further strategic bolt-on acquisitions, primarily within dmg information and Euromoney. We have also made some disposals, notably dmg media's digital recruitment business Evenbase, and the IPO of Zoopla Property Group.

As reported in September, RMS's operating margin is expected to be around 10% to 15% in FY 2015, reflecting the delay of, and continued investment in, RMS(one). The timing of events and disposal of Evenbase will also have an adverse impact on FY 2015 results. The Board remains confident, however, that the Group is well positioned to deliver its excellent long-term growth prospects."

A presentation of the Preliminary Results will be given to investors and analysts at 9.30am on 26 November 2014, at J.P. Morgan, 60 Victoria Embankment, London, EC4Y 0JP. There will also be a live webcast available on our website, http://www.dmgt.com.

Next trading update

The Group's next scheduled announcement of financial information is a trading update on 4 February 2015.

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

* Unless otherwise stated, all profit and margin figures in this Preliminary Full Year Results Report refer to adjusted results and not statutory results. Adjusted results 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. For a reconciliation of Group profit to adjusted Group profit, see Note 11. These adjusted results, including revenue and operating profit, are for total operations, including those treated as discontinued, namely dmg media's digital recruitment business, Evenbase, and, in FY 2013, Northcliffe Media. These businesses contributed operating profit of £15 million (2013: £19 million) from revenues of £53 million (2013: £127 million) and are included in the adjusted results. A reconciliation of adjusted results including discontinued operations to adjusted results excluding discontinued operations is shown on page 25.

~ Percentages are calculated on actual numbers to one decimal place.

# Underlying revenue or profit* is revenue or profit 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; see pages 26 and 27. For dmg information, underlying growth includes the year-on-year organic growth from acquisitions and excludes ECCTIS, a Hobsons business, which was disposed of in January 2014. For dmg events, the comparisons are between events held in the year and the same events held the previous time other than ADIPEC, which became an annual event in November 2013 and which is compared to 50% of the revenues and profits of the biennial November 2012 event. For Euromoney, no adjustments are made for the timing of events but acquisitions are excluded completely and underlying profit excludes the benefit in both FY 2013 and FY 2014 of the historic acceleration of its CAP incentive plan charge. For dmg media, underlying comparisons exclude low margin contract printing revenue, which ceased last year, the central and eastern European businesses, which were disposed of last year, Villarenters, Metro Play, OilCareers, Broadbean and Jobrapido, which were disposed of this year, and distribution services, which ceased earlier this year. 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. The disposal of Jobsite, formerly part of dmg media's Evenbase portfolio, completed in October 2014 and the business is included in the underlying figures other than for dmg media's underlying advertising performance for the eight week period to 23 November 2014. Northcliffe Media is excluded from the DMGT Group underlying comparisons.

^ These statutory highlights are for continuing operations only (excluding the discontinued operations, Northcliffe Media in FY 2013 and dmg media's digital recruitment business, Evenbase, in FY 2014), other than earnings per share which is the total statutory figure.

† Restated for the revision to International Accounting Standard 19 - Employee Benefits [IAS 19 (Revised)]. The revision has changed the methodology for calculating the financial element of the net charge or credit associated with DMGT's defined benefit pension schemes. As a result, pension finance income of £15 million previously recognised during FY 2013, has been restated as a pension finance charge of £13 million. The pension finance item is now excluded from adjusted earnings as the calculation under the new standard does not necessarily reflect the underlying economics associated with the relevant pension assets and liabilities. See Note 2.

Daily Mail and General Trust plc

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www.dmgt.co.uk

Registered in England and Wales No. 184594

Management Report

This management report, on the unaudited preliminary results for the year ended 30 September 2014, focuses principally on the adjusted results to give a more comparable indication of the Group's business performance. All year-on-year comparisons are on a like-for-like basis. The reported results include discontinued operations, namely the Northcliffe Media and Evenbase businesses.

An explanation of restructuring and impairment charges and other items included in the statutory results is set out after the divisional performance review and in the segmental note (Note 4). The adjusted results are summarised below:

Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers.

Notes

* Unless otherwise stated, all profit and margin figures in this Preliminary Full Year Results Report refer to adjusted results and not statutory results. Adjusted results 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. For a reconciliation of Group profit to adjusted Group profit, see Note 11. These adjusted results, including revenue and operating profit, are for total operations, including those treated as discontinued, namely dmg media's digital recruitment business, Evenbase, and, in FY 2013, Northcliffe Media. These businesses contributed operating profit of £15 million (2013: £19 million) from revenues of £53 million (2013: £127 million) and are included in the adjusted results. A reconciliation of adjusted results including discontinued operations to adjusted results excluding discontinued operations is shown on page 25.

# Underlying revenue or profit* is revenue or profit 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; see pages 26 and 27. For dmg information, underlying growth includes the year-on-year organic growth from acquisitions and excludes ECCTIS, a Hobsons business, which was disposed of in January 2014. For dmg events, the comparisons are between events held in the year and the same events held the previous time other than ADIPEC, which became an annual event in November 2013 and which is compared to 50% of the revenues and profits of the biennial November 2012 event. For Euromoney, no adjustments are made for the timing of events but acquisitions are excluded completely and underlying profit excludes the benefit in both FY 2013 and FY 2014 of the historic acceleration of its CAP incentive plan charge. For dmg media, underlying comparisons exclude low margin contract printing revenue, which ceased last year, the central and eastern European businesses, which were disposed of last year, Villarenters, Metro Play, OilCareers, Broadbean and Jobrapido, which were disposed of this year, and distribution services, which ceased earlier this year. 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. The disposal of Jobsite, formerly part of dmg media's Evenbase portfolio, completed in October 2014 and the business is included in the underlying figures other than for dmg media's underlying advertising performance for the eight week period to 23 November 2014. Northcliffe Media is excluded from the DMGT Group underlying comparisons.

~ Percentages are calculated on actual numbers to one decimal place.

† Restated for the revision to International Accounting Standard 19 - Employee Benefits [IAS 19 (Revised)]. The revision has changed the methodology for calculating the financial element of the net charge or credit associated with DMGT's defined benefit pension schemes. As a result, pension finance income of £15 million previously recognised during FY 2013, has been restated as a pension finance charge of £13 million. The pension finance item is now excluded from adjusted earnings as the calculation under the new standard does not necessarily reflect the underlying economics associated with the relevant pension assets and liabilities. See Note 2.

The average £: US$ exchange rate for the year was £1:$1.66 (2013 £1:$1.56). The rate at the year end was $1.62 (2013: $1.62).

All references to profit or margin in this management report are to adjusted profit or margin, except where reference is made to statutory profit.

Summary

Group performance: DMGT has delivered another good set of results. Group revenue* for the year was £1,864 million, compared with £1,802 million for the prior year. Reported revenues, up 3%, were adversely impacted by the stronger pound relative to the US dollar; on an underlying# basis, revenues increased by 5%. There was good underlying growth in several revenue categories, particularly digital advertising and events, with print advertising and circulation revenues declining as expected.

Revenue performance across our B2B businesses and our consumer business, dmg media, on a reported and underlying basis is summarised below.

Reported Group revenue includes discontinued operations, namely Evenbase and Northcliffe Media.

Operating profit* increased 4% to £311 million, despite the adverse impact of the stronger pound, and increased by 15% on an underlying basis.

The Group's B2B companies' operating profits were up 1% on a reported basis, an underlying increase of 8%. The operating profits of dmg media were up 19% on a reported basis and up 28% on an underlying basis. After allocating head office costs based on revenues, B2B businesses generated 75% of this year's operating profit with 25% generated by consumer businesses, compared to 77% and 23% for the prior year, reflecting the strength of the pound and the strong profit growth at dmg media. Well over half of the Group's operating profits were derived from outside the UK.

Adjusted profit before tax* increased by 9% to £291 million. This reflected the changes in operating profit described above, increased income from joint ventures and associates, notably Zoopla Property Group and Local World, and reduced net finance costs due to lower levels of bond debt. Adjusted Group profit after tax and minority interests* was up 10% to £207 million and adjusted earnings per share* rose by 12% to 55.7p. The full year dividend increased by 6% to 20.4p.

The statutory profit before tax, excluding discontinued operations, for the year was £267 million after £40 million of amortisation and impairment charges in respect of goodwill and acquired intangible assets and £72 million of net exceptional charges, including the impairment of internally generated intangible assets. Statutory profit after tax was £283 million, up from £188 million, reflecting the profits on disposal made in the prior year, and statutory earnings per share increased from 43.6p to 70.6p.

Net debt: increased by £30 million to £603 million, following £42 million of share buy back payments during the year and a £24 million premium on the early redemption of bonds in December 2013. At the year end, the Group's net debt comprised £569 million of bonds, £60 million of bank borrowings, £3 million of loan notes and a cash balance of £29 million. There was a further early redemption of £149 million of bonds in October 2014. The Group's ratio of net debt to EBITDA was 1.5 times at the year end, well below the Group's preferred upper limit of around 2.0 times and significantly below the requirements of the Group's bank covenants.

Active portfolio management: has continued throughout the year with acquisitions totalling £174 million and disposals totalling £253 million. As for the past few years, the principal acquisitions were within dmg information and Euromoney.

In October 2013 dmg information acquired DIIG(E), the UK based property information business which includes SearchFlow, for £76 million. Euromoney acquired trade and certain assets of the Mining Investment Events Division of Summit Professional Networks, including the Investing in African Mining Indaba brand, for £46 million in July 2014. In addition to these larger transactions, Euromoney acquired Infrastructure Journal; dmg events acquired Quartz Coatings Events; dmg information's energy business, Genscape, acquired Energytics; and dmg information acquired a majority stake in SiteCompli, the New York based provider of property compliance monitoring, reporting and alerting technology. Genscape also acquired a 33% stake in Petrotranz during the year and increased its stake to just over 50% in November 2014. Strategic investments during the year included Hobsons' stake in iProf, a provider of test preparation services to students in India, and dmg information's stake in Skymet, the Indian weather forecasting and agricultural risk solutions business.

The main disposals in the year have been dmg media's disposal of its digital recruitment business Evenbase, with the final business, Jobsite, disposed of in October 2014, and 39% of DMGT's then 52% holding in Zoopla Property Group (Zoopla). DMGT's proceeds from the IPO of Zoopla in June 2014 were £180 million and DMGT's stake in Zoopla is now 32%.

Outlook

Group: we have entered the new financial year with our businesses performing in line with our expectations. All our B2B businesses are expected to make good progress in the year ahead, although RMS's profits will be adversely impacted by the ongoing investment in the new risk management platform, RMS(one), and the performance of dmg events will be adversely impacted by the timing of events. On the consumer side, revenue progress will be largely dependent on the print advertising environment, balanced against further growth in digital areas, although a continued focus on cost efficiencies should provide margin stability for dmg media.

RMS: the core business will continue to deliver both enhanced and completely new models during the coming year. There will be new versions of the North Atlantic Hurricane and European Windstorm models and the first of RMS's 'high-definition models', which offer a far greater degree of granularity, including Pan-European flood. The business will, however, continue to invest in RMS(one) with no significant revenues expected from this new product until FY 2016. Consequently, RMS as a whole is expected to deliver underlying revenue growth in the low single digits but with a reduced margin of around 10% to 15% in FY 2015.

dmg information: is expected to continue the double-digit growth trend of recent years and deliver underlying revenue growth of around 10% as the portfolio of businesses continues to benefit from new product initiatives and strong customer demand, as well as good performance from recent acquisitions. We expect continued growth across all the sectors in which dmg information now operates, namely Property, Education and Energy information. The operating margin is expected to remain in the high teens.

dmg events: is expected to continue to deliver good underlying growth although reported results will be lower due to one of the business's largest revenue events, Gastech, not occurring in FY 2015 and the impact of other timing differences. Underlying revenue is expected to grow by between 10% and 15%, but reported revenues are likely to decline by around 10% and the operating margin is expected to be between 20% and 25% in FY 2015.

Euromoney: is expected to continue to be impacted by the pressures on the investment banking sector although businesses serving the asset management sector are positioned for further growth in 2015. FY 2015 results will benefit from the Mining Indaba acquisition but are expected to be adversely impacted by event timing differences and increased technology, property and CAP incentive plan costs.

dmg media: is expected to continue to be impacted by declining circulation volumes despite market share gains. As usual, there is limited visibility of future advertising trends, but the growth in digital advertising is expected to continue to offset the decline in print advertising revenues. Overall, underlying revenues at dmg media are expected to remain stable, though reported revenues will be adversely impacted by the disposal of Evenbase. The operating margin is expected to remain at around 12%. dmg media's first quarter trading to date has been satisfactory but we remain cautious about the medium term outlook, given continuing external uncertainties, particularly for UK print advertising.

Joint ventures and associates: will be lower due to the reduced stake in Zoopla but will benefit from Euromoney's expected new stake in Dealogic. DMGT's share of pre-tax profits from joint ventures and associates is expected to be at least £30 million.

Net debt and capital allocation: the year end net debt:EBITDA ratio of 1.5 times is well below our preferred upper limit of 2.0 times and the Board remains confident in the overall outlook for the Group and its operating cash flows. We believe that the creation of shareholder value over the long term requires a balanced approach to investing in growth and returning capital to shareholders while maintaining a strong balance sheet. We continue to look for attractive acquisitions and actively manage our business portfolio while maintaining our dividend policy. Subject to the share price, the Board expects to complete the remainder of the £100 million share buy back programme announced in September 2014, although DMGT's M&A requirements will remain the priority for investment. As a result of £106 million of bond buy backs in December 2013 and a further £149 million in October 2014, and assuming our normal level of M&A activity, net finance costs are expected to be around £40 million in FY 2015 compared to £51 million in FY 2014.

Business Review

Business to business (B2B)

These results are stated after allocating Group corporate costs on the basis of B2B's share of Group revenues.

Revenues from the B2B group totalled £1,069 million, up 8% on the prior year on an underlying basis. Operating profits, including allocated Group corporate costs, were 1% higher at £234 million and were up 8% on an underlying basis, with notable growth from dmg information and dmg events compensating for the lower profits at RMS due to RMS(one). The lower margin at RMS and dmg information, following the acquisition of SearchFlow and the inclusion of the loss making Xceligent business, adversely impacted the overall B2B operating margin which declined to 22%.

Risk Management Solutions (RMS)

RMS delivered another year of underlying revenue growth with an increase of 4%, though on a reported basis, including the adverse impact of the stronger pound, revenues declined by 2%. As expected, RMS's cost base increased during the year to support the development of the RMS(one) initiative and operating profit declined by 20% on a reported basis, 12% on an underlying basis. The operating margin reduced to 26%.

The majority of the underlying revenue increase came from the Natural Catastrophe, Underwriting Solutions and Capital Markets businesses, primarily through contract renewal increases. RMS continues to innovate in the catastrophe modelling market. Recent releases include US and Canada Severe Convection Storm, China and Hong Kong Typhoon and Coastal Flooding and the US Hurricane and Coastal Flooding models. In Capital Markets, RMS pioneered a new approach to modelling indemnity catastrophe bonds and launched a high profile innovatively structured Catastrophe Bond which commanded good levels of demand in the market.

Following the postponement of the release of RMS(one), which was originally scheduled for April 2014, the approach to the development of the product has changed with certain elements of the existing software being improved and simplified in order to enhance the product's performance, functionality and openness. A revised plan has been implemented which will result in a programme of incremental deliverables to Joint Development Partner clients during 2015. At a minimum, delivery of RMS's first high-definition models to the broader client base is expected by late 2015. RMS expects that this lower risk, phased approach will lead to staged utilisation by RMS's broader client base.

Outlook

Revenues from the core business, excluding RMS(one), were £170 million in financial year 2014 and underlying growth is expected to be in the low-single digits in financial year 2015. Given the delay in the launch of RMS(one), significant revenues from RMS(one) and related amortisation costs are not expected to commence until financial year 2016. With the changed approach to the development of RMS(one), capitalised development costs will be materially lower and the reduced capitalisation of expenditure, combined with committed increases in data centre costs for RMS(one), will result in RMS's overall operating profit margin being around 10% to 15% in financial year 2015.

dmg information

dmg information had another very good year, delivering underlying revenue growth of 12%, 34% on a reported basis including the impact of the DIIG(E) (SearchFlow) acquisition which completed in October 2013.

The Property, Education and Energy information businesses all delivered double digit underlying growth. Underlying operating profit increased by 26%, and profit increased by 17% on a reported basis, with particularly good margin improvement from Hobsons, the Education information business. The operating margin declined to 17% as a result of M&A activity, notably the inclusion of the lower margin SearchFlow business and the loss making Xceligent business, which became a subsidiary in October 2013.

Property information

Operating profit* is stated before charging central dmg information costs.

Our Property information companies grew underlying revenues by 13% and, due to acquisitions, reported revenues increased by 72%. In October 2013, dmg information acquired DIIG(E), the principal business being SearchFlow, for £76 million. SearchFlow is a UK based business providing legal professionals, who conduct property transactions, with an electronic search service for residential and commercial property information and is complementary to dmg information's existing businesses in the property sector, notably Landmark. Both SearchFlow and Landmark delivered double digit underlying revenue growth, buoyed by the upswing in volumes in the UK residential property market and by further new product initiatives.

In the US, EDR delivered robust growth in a year when the volume of commercial property transactions grew only marginally. EDR's growth benefited from the rollout of its Lender Portal, a web-based compliance application. Xceligent, the provider of US commercial real estate information, continued to build out the geographical footprint of US cities for which products have been developed. Xceligent was accounted for as an associate business during FY 2013 but became a dmg information subsidiary in October 2013. In August 2014, dmg information acquired a majority stake in SiteCompli, the New York based provider of property compliance monitoring, reporting and alerting technology. The acquisition further increases dmg information's ability to bring transparency to the real estate sector.

The three largest businesses, Landmark, SearchFlow and EDR, each improved their operating margins during the year and the underlying operating profit growth was 19% for property information as a whole. As expected, however, the operating margin was adversely impacted by the inclusion of the lower margin SearchFlow acquisition and the inclusion of Xceligent's losses.

Education, Energy and Financial information

Operating profit* is stated before charging central dmg information costs.

Underlying revenues grew by 12%, with each of the three sectors (Education, Energy and Financial) contributing positively to the growth in the period.

Hobsons, which provides information to the Education sector, continued its strong growth with underlying revenues increasing by 12%. In the US, Hobsons' services continue to benefit from rising demand from high schools and higher education institutions for their enrolment services. The K-12 business delivered particularly strong growth, expanding the client base and increasing the yield per client. New K-12 product launches included Naviance Curriculum, a blended learning solution to help students reach their long-term career goals using proprietary video content. Hobsons also launched Radius, a student lifecycle management solution for the higher education market, encompassing recruitment, application, enrolment and retention and enabling a client to proactively engage with a student from initial marketing through to graduation. Hobsons' Australian business continued its expansion with a diversified product offering through Naviance and Edumate.

Our Energy information company, Genscape, continued its strong growth trajectory, proving real-time, fundamental production data and analysis across the power, oil, gas, agriculture, biofuels and maritime shipping markets. Underlying revenues increased by 21% with particularly good growth from its oil, gas and biodiesel products. In October 2013, Genscape acquired Energytics, a Texas based provider of information services to energy traders. During the year, Genscape acquired a 33% stake in Petrotranz, a Canadian business which provides clients in the oil and natural gas industries with a web-based communication and collaboration platform to automate manual and inefficient processes. The stake was increased to just over 50% in November 2014.

The Financial information businesses, Trepp and Lewtan, delivered underlying revenue growth of 5%, an encouraging performance reflecting the success of product innovation in a market sector where growth remained challenging. Lewtan, the smaller of the two businesses, was disposed of in October 2014. Trepp, which has a significant database of specific property information that is used to provide data and analysis to the Commercial Mortgage-Backed Securities (CMBS) market, will in future be included within dmg information's Property information portfolio.

Underlying operating profit growth of 28% benefited from margin improvement at both Hobsons and Genscape.

Outlook

For FY 2015, dmg information expects to achieve underlying revenue growth of around 10%. The operating margin is expected to remain in the high teens.

dmg events

dmg events had another very good year with underlying revenues increasing by 21% and underlying profits by 29%. All four of the largest events occurred in the year, compared to three in FY 2013, and ADIPEC successfully transitioned from a biennial to an annual event in November 2013, securing revenues equivalent to 96% of the November 2012 biennial event. The Gastech event in March 2014 delivered a particularly strong performance, increasing revenues by 45%. The business also successfully expanded the Energy and Construction events into new geographies during the year, including Mexico, Kuwait, Korea and India. The operating margin of 27% benefited from the inclusion of all four of the higher margin, largest events.

In January 2014, dmg events acquired Quartz Coatings Events, which operates shows for the paints and coatings market, complementing its existing construction events such as Big 5 and the Middle East Coating Show. The acquisition, which operates in Vietnam, Thailand, Indonesia, Mexico and Morocco, is also expected to facilitate dmg events' expansion through cloning existing events into new geographies.

Outlook

Gastech, one of dmg events' largest events, will not be held during FY 2015 and the Global Petroleum Show is expected to be a smaller event in FY 2015 as it moves from a biennial to an annual cycle. Consequently reported revenues are expected to decline by around 10%, although underlying revenues are expected to increase by between 10% and 15%. The operating margin is expected to be between 20% and 25%, a slight decline compared to FY 2014, due to the absence of some of the higher contribution larger events and ongoing investment in marketing the events and improving content in order to deliver sustainable long-term growth.

Euromoney Institutional Investor

Euromoney released its preliminary results on 20 November. Given the stronger British pound, revenue was in line with last year on a reported basis, although up by 3% on an underlying basis after adjusting for acquisitions and exchange rates. Subscriptions, which accounted for 50% of revenue in the year, grew by 2% on an underlying basis. The Conferences & Seminars business delivered an encouraging performance with underlying growth of 9%.

Operating profit, including the cost of Euromoney's management incentive Capital Appreciation Plan (CAP), declined by 1% to £117 million. An additional accelerated charge in respect of the CAP was recognised in 2011, and both last year's and this year's profits benefit from the earlier acceleration of that charge. Excluding this benefit, and adjusting for exchange rates and M&A activity, underlying operating profit was up 4% on last year. Operating margin was constant at 29%, reflecting increased investment in Euromoney's digital strategy, notably the new Delphi content platform, offset by reduced CAP charges. The Delphi platform will improve the quality of existing subscription products and increase the speed to market of new digital information services.

During the year Euromoney acquired Infrastructure Journal, a leading information source for the international infrastructure markets, which has been successfully integrated with Euromoney's existing Project Finance business and re-launched under the IJ Global brand. Euromoney acquired trade and certain assets of the Mining Investment Events Division of Summit Professional Networks for £46 million in July 2014. The principal asset, Mining Indaba, is the largest mining event in emerging markets. Euromoney will draw on its strong links to institutional investors and governments to enhance the investor content and networking opportunities. In April, Euromoney disposed of its MIS training business which offered limited synergies with the rest of Euromoney and required significant investment to drive future growth.

In November 2014, Euromoney announced plans to acquire a 15.5% equity stake in a new company incorporated to acquire Dealogic Holdings plc. The investment will be funded through the disposal of Euromoney's interests in Capital NET and Capital DATA and is expected to complete in December 2014.

Outlook

The pressures on the investment banking sector, which accounts for nearly half of Euromoney's revenues, from increased regulation and compliance costs show no real sign of easing. Investment banks' fixed income activities are most important to Euromoney and have been hardest hit. Euromoney's businesses serving the asset management sector have seen conditions improve during 2014 and these businesses are positioned for further growth in 2015. Mining Indaba is expected to contribute approximately £5m to operating profits in FY 2015 but profits are expected to be adversely impacted by the Dealogic transaction, which will be treated as an associate, event timing differences and increased property, Delphi and CAP costs.

Consumer media

These results are stated after allocating Group corporate costs on the basis of Consumer media's share of Group revenues.

The reported results for the Consumer businesses, compared to the prior year, were impacted by the disposal of Northcliffe Media, effective 30 December 2012. The Group owns a c.32% stake in Zoopla Property Group, the digital property business, and a c.39% stake in Local World, the local media publisher. DMGT's share of profits of these businesses is included within joint ventures and associates.

dmg media

These results are stated before the allocation of Group corporate costs. Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers.

Summary

Underlying and reported revenues were in line with the prior year, a good performance given the challenging trading environment. Evenbase, the digital recruitment portfolio, was disposed of during 2014, although the final business, Jobsite, was disposed of in October 2014 and is included in dmg media's underlying performance for the year.

The underlying increase in digital advertising revenues across the dmg media portfolio continued to exceed the ongoing decline in print advertising revenues, with total underlying advertising revenues increasing by 5%. Overall underlying circulation revenues declined by 4%, outperforming in a difficult market environment.

Operating profit for the year increased by 19% to £95 million. The underlying increase was 28%, or 21% excluding Jobsite. The increased digital investment in MailOnline was more than offset by lower costs, notably production, distribution, marketing and central support services at the Daily Mail and The Mail on Sunday, and reduced losses at Wowcher. These factors contributed to the increase in operating margin from 10% to 12%.

Mail Newspapers / MailOnline

Revenue for the combined newspapers and website businesses (Daily Mail, The Mail on Sunday and MailOnline) declined by 1% to £598 million due to a 5% decline in print advertising revenue and a 4% decline in circulation revenue. This was mitigated in part by revenue growth for MailOnline, including Metro.co.uk which is operated by the MailOnline team, of 41%. The Daily Mail's circulation volumes continued to decline although the strength of the Mail brand enabled a continued increase in the Daily Mail's and The Mail on Sunday's market shares to an average of 22.5% and 21.3% for the year respectively, compared to 22.0% and 20.9% in the prior year. Revenues benefited from the February 2013 increase in the cover price of the Monday to Friday editions of the Daily Mail, from 55p to 60p.

Total advertising revenues across the Mail Businesses were £252 million, an increase of £9 million, 4% on the same period last year with the £19 million, 46% increase in MailOnline's advertising revenues exceeding the £10 million, 5% decline in print advertising revenues.

MailOnline continues to grow strongly, with 185 million monthly unique browsers and 11.8 million average daily unique browsers in September 2014. The average number of monthly unique browsers during the year increased by 41% compared to the prior year and the average daily unique browsers increased by 38%. MailOnline continues to focus on increasing the size and engagement level of its global audience and, in particular, its US audience. There were 63 million monthly unique US browsers and 3.2 million average daily unique US browsers in September 2014, with average growth during the whole year of 45% and 42% respectively.

In January 2014, MailOnline launched an Australian joint venture with Mi9, part of the Nine Entertainment Co, and the business is expected to benefit from the advertising relationships and video content from this alliance. MailOnline's revenue of £62 million excludes the joint venture. Average daily unique Australian browsers in September 2014 were over 550,000, an increase of 89% on the level in September 2013.

Other dmg media businesses

Revenue at Metro declined 3% to £75 million, a robust performance for a print advertising business. Metro remains the UK's third largest daily newspaper, read by 3.2 million people every weekday.

Wowcher, the daily deals and online discounts business, continued to deliver substantial growth, with revenues increasing 73% to £24 million. The business has developed a database of 5.9 million customers, notably affluent, urban females. Wowcher has been in investment phase but reached a profitable run-rate during the second half of the year and is expected to be profitable during FY 2015.

The disposal of Jobsite in October 2014 completed dmg media's exit from the digital recruitment market following the disposal of the other Evenbase businesses, OilCareers, Broadbean and Jobrapido earlier in the year. Evenbase delivered £15 million of operating profit from £53 million of revenues during the year.

Other revenues benefited, on a reported basis, from the inclusion of low margin sales of newsprint to other publishers.

Outlook

For FY 2015, dmg media expects to deliver stable underlying revenues, in the -2% to +2% range, with digital advertising growth across the portfolio offsetting circulation and print advertising declines. Reported revenues will be adversely impacted by the disposal of Evenbase. The operating margin is expected to remain at around 12% with cost efficiencies helping to protect profitability. Trading during the eight weeks since the year end has seen underlying advertising revenue growth of 3% and circulation revenues down 5%.

Northcliffe Media

These results are stated before the allocation of Group corporate costs.

Northcliffe Media was sold to Local World, a company in which the Group owns a c.39% stake, at the end of December 2012.

Joint Ventures & Associates

The Group's share of the results of its joint ventures and associates increased by £9 million to £31 million. The share of Zoopla Property Group's operating profits for the year was £17 million, compared to £15 million in the prior year, reflecting the combination of the business's continued growth and a reduction in DMGT's stake from c.52% to c.32% as a result of the IPO of Zoopla Property Group in June 2014.

Local World delivered a robust performance and DMGT's c.39% share of operating profits was £15 million for the year compared to £11 million for the 9 months post its formation in December 2012. Local World continued to increase operating profit despite declining revenues. Xceligent, the US property information business, became a subsidiary of dmg information in October 2013.

During the year Genscape, dmg information's energy information business, acquired a 33% stake in Petrotranz. The stake was increased to just over 50% in November 2014 and Petrotranz is now a subsidiary of Genscape. Hobsons, dmg information's Education information business, acquired a 10% stake in iProf, a provider of test preparation content for students in India, and is working with iProf in developing new tools and services for the K-12 market. dmg information also acquired a 21% stake in Skymet, an Indian weather forecasting and agricultural risk solutions business.

Outlook

The FY 2015 share of operating profits from joint ventures and associates, assuming no changes to DMGT's current holdings other than Euromoney's expected acquisition of a 15.5% stake in Dealogic in December 2014, will be adversely impacted by a full year of the reduced stake in Zoopla Property Group, down from c.52% to c.32%, and is expected to be at least £30 million.

Net finance costs

Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers.

Net finance costs decreased by £4 million to £51 million. Net interest payable and similar charges declined by £6 million, benefiting from the redemption of bonds in December 2013. There was negligible investment income in the year whereas the prior year included a small dividend from the Press Association.

Following its disposal of MeteoGroup, the Press Association paid a dividend of £9 million during the year but, given the reason for the dividend, it has been excluded from adjusted results.

The pension finance charge, which is excluded from adjusted results, was £8 million compared to £13 million in the prior year.

Exceptional finance costs also included a £24 million charge for the premium on the early redemption of bonds in December 2013 when DMGT redeemed £56 million of 10.0% Bonds, due 2021, and £50 million of 5.75% Bonds, due 2018. In October 2014, DMGT redeemed £93 million of the 10.0% Bonds and £56 million of the 5.75% Bonds and paid a £40 million premium.

Outlook

Due to the benefit of reduced bond debt, and assuming our normal level of M&A activity, net finance costs are expected to be around £40 million in FY 2015, compared to £51 million in FY 2014.

Other income statement items

· Exceptional items and amortisation

Exceptional operating costs were £72 million in the year, compared to £49 million in the prior year. These included £27 million of cash items, compared to £28 million in the prior year. There were £20 million of restructuring costs at dmg media, with the reduced headcount in its newspaper businesses and central functions reflecting the considerably more focused portfolio of businesses it has become. RMS incurred £4 million of restructuring costs as it reduced headcount following a change in approach to the development of RMS(one). There was a £45 million impairment of the RMS(one) software, resulting from revisions to the timing of RMS(one) releases and the anticipated phasing of client adoption. Following the impairment, the net book value of the asset at the year end was £41 million. 

The charge for amortisation of intangible assets arising on business combinations increased by £4 million to £44 million. The Group also made an impairment charge against goodwill and acquired intangible assets of £20 million, including £15m in respect of dmg media's Jobrapido business prior to its disposal.

The Group recorded other net gains on disposal of businesses and investments of £179 million, compared to a net gain of £61 million last year. The gains primarily related to the IPO of Zoopla Property Group and dmg media's online recruitment businesses, OilCareers and Broadbean.

· Taxation

The adjusted tax charge of £59 million is stated after adjusting for the effect of exceptional items and was £10 million more than last year. The adjusted tax rate for the year rose to 20.1% from 18.3% in FY 2013. The increase reflects a reduced impact on the rate from tax-efficient financing and tax deductible amortisation in the US. The effective tax rate is expected to increase to around 22% over the next three years.

The statutory tax charge for the year, excluding £5 million of tax charges in respect of joint ventures and associates, was £22 million, £37 million less than the adjusted tax charge. There were tax credits of £5 million in respect of the amortisation and impairment of intangible fixed assets and tax charges of £4 million on the disposal of businesses. There were also £31 million of tax credits on exceptional items, predominantly on the impairment of RMS(one), the bond buy back and other restructuring charges.

Pensions

The deficit on the Group's defined benefit pension schemes increased from £208 million at the beginning of the year to £212 million at 30 September 2014 (calculated in accordance with IAS 19 (Revised)), with the increase in the value of the defined benefit obligation exceeding the increase in the value of assets. Funding payments into the main schemes during the year were £50 million, including the £13 million final instalment in respect of the disposal of Northcliffe Media. In February 2014, the Group and the Trustees agreed a revised funding plan accruing to the main schemes through to 2026, totalling approximately £34 million per annum to 2020, £28 million per annum to 2022 and then £23 million per annum thereafter. In addition a contribution equal to 20% of any share buy backs will be contributed to the schemes, albeit this will be offset by up to £5 million of agreed funding contributions each year. Contributions will be discontinued should the schemes' actuary agree the schemes are no longer in deficit, with the next formal actuarial valuation scheduled for 31 March 2016. The defined benefit schemes are closed to new entrants.

Net debt and cash flow

Net debt at the end of the year was £603 million, an increase of £30 million during the year and a decrease of £190 million since the half year. The Group generated operating cash flows of £243 million, a 78% conversion rate of operating profits*. The conversion rate was adversely impacted by increased capital expenditure, notably product development at dmg information, and increased working capital due to reduced trade payables, notably due to the timing of events and payment of long-term incentive plans. Operating cash flows include exceptional operating items of £27 million and capital expenditure of £70 million, excluding £36 million of expenditure in respect of RMS(one).

Net proceeds from disposals and acquisitions were £79 million. Cash out-flows included dividends of £81 million, £42 million on the share buy-back programmes, a further £40 million of purchases of DMGT and Euromoney shares in respect of future incentive plan payments, interest payments of £53 million, pension funding of £50 million, taxation of £25 million and a £24 million premium on the early redemption of bonds in December 2013.

In December 2013, DMGT redeemed £56 million of 10.0% Bonds, due 2021, and £50 million of 5.75% Bonds, due 2018. At the year end, the Group had £569 million of Bonds with repayments due in 2018 (£264 million), 2021 (£108 million) and 2027 (£196 million). In October 2014, DMGT redeemed £93 million of the 10.0% Bonds and £56 million of the 5.75% Bonds, reducing total bond debt to £416 million. During the year and in October 2014, bank facilities were increased by £239 million, to £539 million, and extended to 2019. Bond debt now constitutes less than half of the debt available to DMGT. At the year end, the bank facilities were £489 million, of which £430 million was unutilised, and surplus cash was £29 million.

The Group's ratio of year end net debt to adjusted profits before interest, depreciation and amortisation (EBITDA) was 1.5 times, comfortably below the Group's preferred upper limit of around 2.0 times, and well within the requirements of the Group's bank covenants. The Group's corporate credit rating from Standard & Poor's improved in March 2014, from BB+ to investment grade BBB-, the same as the rating from Fitch.

The Directors consider that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing its accounts.

Capital allocation and share buy back

The Board of DMGT remains confident in the overall outlook for the Group and believes that the creation of shareholder value over the long term requires a balanced approach to investing in growth and returning excess capital to shareholders, whilst maintaining a strong balance sheet. Balanced against continued organic investment, the Group continues to look for attractive acquisitions while maintaining a dividend policy of growing dividends by between 5% and 7% in real terms over the economic cycle. During the year, DMGT completed the remaining £31 million of the £100 million share buy-back programme announced in November 2012 and announced a new £100 million share buy-back programme in September 2014, of which £11 million was completed during September and a further £20 million since the year end.

Financing

During the year, the Group acquired 5.1 million 'A' Ordinary Shares for £42 million under the share buy-back programmes. The Group acquired a further 5.5 million 'A' Ordinary Shares for £49 million in order to meet obligations to provide shares under its incentive plans and utilised 3.8 million shares out of Treasury, valued at £34 million, to provide shares under various incentive plans. As at the end of day on 25 November 2014, DMGT had 363.9 million shares in issue, including 19.9 million Ordinary Shares, and a further 7.2 million 'A' Ordinary Shares held in Treasury and by the DMGT Employee Benefit Trust, following the cancellation of 22.7 million 'A' Ordinary Shares, that were previously held in Treasury, on 25 November 2014∞.

Dividend

The Board is recommending payment on DMGT's issued Ordinary Shares and 'A' Ordinary Shares of a final dividend of 14.2 pence per share for the year ended 30 September 2014 (2013 13.3 pence). This will make a total for the year of 20.4 pence (2013 19.2 pence per share). The final dividend will be paid on 6 February 2015 to shareholders on the register at the close of business on 5 December 2014.

Reconciliation: Adjusted results including and excluding discontinued operations

Notes: Discontinued operations are dmg media's digital recruitment business, Evenbase, and, in FY 2013, Northcliffe Media.

Underlying analysis - Revenues

Notes: M&A adjustments are for disposals, including dmg media's central and eastern European operations and digital recruitment businesses (OilCareers, Broadbean and Jobrapido), and acquisitions, including DIIG/SearchFlow, Infrastructure Journal and Xceligent. Acquisitions are excluded from Euromoney's underlying results whereas dmg information's underlying growth rate includes the year-on-year organic growth from acquired entities. 'Other' adjustments include the gross-up, equivalent to the cost of sales, on the low margin resale of newsprint activities as well as discontinued low margin contract printing and distribution activities.

Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers.

Underlying analysis - Adjusted operating profit*

Notes: B2B and Consumer underlying figures are stated pre the allocation of Corporate costs. Including Corporate costs, the underlying growth rates for B2B and Consumer were +8% and +39% respectively. 'Other' includes adjustments for the timing of events and the acceleration of Euromoney's CAP costs.

Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers.

Principal risks and uncertainties

Understanding the risks and, just as importantly, the opportunities that impact DMGT's businesses is vital. Effective risk and opportunity management saves time and money, and gives assurance to management, the DMGT executive team, Risk Committee and the Board.

The Group's risks are categorised as either strategic or operational. Strategic risks are linked to the Group's strategic priorities and impact the whole Group. Operational risks are those arising from the execution of the business functions and typically impact on one or more of the operating businesses.

Strategic Risks

Operational risks

Statement of Directors' responsibilities

The Directors are responsible for preparing the full year financial report, in accordance with applicable law and regulations.

The Directors confirm that to the best of their knowledge:

a) the financial statements, prepared in accordance with International Financial Reporting Standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and

b) the management report includes a fair review of the information required by the Financial Services Authority's Disclosure and Transparency Rules 4.2.7R and 4.2.8R.

By order of the Board of Directors

The Viscount Rothermere

Chairman

25 November 2014

* Unless otherwise stated, all profit and margin figures in this Preliminary Full Year Results Report refer to adjusted results and not statutory results. Adjusted results 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. For a reconciliation of Group profit to adjusted Group profit, see Note 11. These adjusted results, including revenue and operating profit, are for total operations, including those treated as discontinued, namely dmg media's digital recruitment business, Evenbase, and, in FY 2013, Northcliffe Media. These businesses contributed operating profit of £15 million (2013: £19 million) from revenues of £53 million (2013: £127 million) and are included in the adjusted results. A reconciliation of adjusted results including discontinued operations to adjusted results excluding discontinued operations is shown on page 25.

~ Percentages are calculated on actual numbers to one decimal place.

# Underlying revenue or profit* is revenue or profit 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; see pages 26 and 27. For dmg information, underlying growth includes the year-on-year organic growth from acquisitions and excludes ECCTIS, a Hobsons business, which was disposed of in January 2014. For dmg events, the comparisons are between events held in the year and the same events held the previous time other than ADIPEC, which became an annual event in November 2013 and which is compared to 50% of the revenues and profits of the biennial November 2012 event. For Euromoney, no adjustments are made for the timing of events but acquisitions are excluded completely and underlying profit excludes the benefit in both FY 2013 and FY 2014 of the historic acceleration of its CAP incentive plan charge. For dmg media, underlying comparisons exclude low margin contract printing revenue, which ceased last year, the central and eastern European businesses, which were disposed of last year, Villarenters, Metro Play, OilCareers, Broadbean and Jobrapido, which were disposed of this year, and distribution services, which ceased earlier this year. 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. The disposal of Jobsite, formerly part of dmg media's Evenbase portfolio, completed in October 2014 and the business is included in the underlying figures other than for dmg media's underlying advertising performance for the eight week period to 23 November 2014. Northcliffe Media is excluded from the DMGT Group underlying comparisons.

† Restated for the revision to International Accounting Standard 19 - Employee Benefits [IAS 19 (Revised)]. The revision has changed the methodology for calculating the financial element of the net charge or credit associated with DMGT's defined benefit pension schemes. As a result, pension finance income of £15 million previously recognised during FY 2013, has been restated as a pension finance charge of £13 million. The pension finance item is now excluded from adjusted earnings as the calculation under the new standard does not necessarily reflect the underlying economics associated with the relevant pension assets and liabilities. See Note 2.

∞ Following the cancellation of 22,716,762 'A' Ordinary Shares on 25 November 2014, there are now 5,000,000 'A' Ordinary Shares held in Treasury. There are also 2,195,904 'A' Ordinary Shares held by the DMGT Employee Benefit Trust. Including the shares held in Treasury and by the DMGT Employee Benefit Trust there are currently 351,249,795 'A' Ordinary Shares in issue. There are also 19,890,364 Ordinary Shares in issue, which are held by Rothermere Continuation Limited.

The average £: US$ exchange rate for the year was £1:$1.66 (2013 £1:$1.56). The rate at the year end was $1.62 (2013: $1.62).

All references to profit or margin in this management report are to adjusted profit or margin, except where reference is made to statutory profit.

A presentation of the Preliminary Results will be given to investors and analysts at 9.30am on 26 November 2014, at J.P. Morgan, 60 Victoria Embankment, London, EC4Y 0JP. There will also be a live webcast available on our website, http://www.dmgt.com.

Next trading update

The Group's next scheduled announcement of financial information is a trading update on 4 February 2015. 

This Preliminary Full Year Results Report ('Report') 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 Report save as would arise under English law. Statements contained in this Report 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 Report. The Groupundertakes 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 Report.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.