Daily Mail group revenue plunges £95m but investments offset the loss
The group behind the Daily Mail has seen revenues tumble 12 per cent over the past six months, the newspaper group said this morning, but its investments may have offset the loss.
The newspaper group raked in nearly £100m less in the six months to 31 March, earning revenue of £547m, down from £642m in 2020.
The company also owns weekday freesheet Metro which has been hit by the declining numbers of commuters picking it up in the work-from-home era.
The Trust’s shares were up 3.46 per cent this morning, taking its price to 868p per share.
“Underlying growth from MailOnline of nine per cent was more than offset by a 38 per cent decrease in print advertising revenues, reflecting particularly challenging market conditions for Metro and resulting in total advertising revenues decreasing by an underlying 17 per cent to £148m,” the Trust said this morning.
Daily Mail and General Trust saw statutory pre-tax profits plunge to £42m in the six months to 31 March, down from £77m a year ago.
On an underlying basis, pre-tax profits fell 20 per cent to £42m.
Despite sinking revenue, the group bolstered its offering by buying the New Scientist for £67m in March. The subscriptions led business will help strengthen the group’s revenue for the future, CEO Paul Zwillenberg said.
The Daily Mail and General Trust group sold off its education technology business Hobsons in March in two separate transactions, for around £290m – which would have offset some of the losses.
The group also upped its investment in used car dealership Cazoo to £117m in October last year, with a stake of around £920m on the New York Stock Exchange, according to the CEO.
“Our financial flexibility enabled us to continue to invest in Cazoo through multiple funding rounds. Despite the near-term economic uncertainty, we had conviction in its opportunity to transform the used car market,” Zwillenberg added.
The newspaper group increased its dividend by one per cent to 7.6p per share.