Daily Mail owner raises profit outlook following spike in advertising revenue
The Daily Mail and General Trust (DMGT) has raised its full-year profit outlook following a strong hike in advertising revenue, after formally suspending guidance in the initial outbreak of the pandemic.
DMGT today said it expects group adjusted revenue for the year to be in the region of £1.205bn to £1.215bn, with adjusted operating profit in the range of £85m to 90m.
The Daily Mail owner said the performance was achieved without any government support, including cash from chancellor Rishi Sunak’s furlough schemes.
It comes after the publisher formally suspended guidance in March 2020 at the onset of the Covid-19 pandemic, citing “prudent” concern that the virus would dampen sales.
The group, which owns titles such as the Daily Mail, Mail Online the i and the Metro, said the performance “has been helped by stronger than expected September profit” from its consumer media division, “which benefited from advertising revenue being above expectations”.
DMGT also saw strong performance in its UK property information business, Landmark, following a jump in property market transactions over the period. The group said the spike “was aided by pent up demand, following some easing of lockdown restrictions, and the temporary reduction in UK stamp duty”.
However, the publisher warned that it had “limited visibility” of the year ahead, as the “severity and duration of the Covid-19 pandemic and its economic repercussions remain uncertain”.
DMGT cautioned that further lockdown restrictions set to be rolled out across the UK could impact its propert, events and consumer media divisions over the next 12 months.
Its full-year financial statements for 2020, which are currently being audited, are set to be released on 23 November.