Northcliffe Newspapers achieved operating profits of £86.8m in the past financial year, down six per cent on the previous year.

Daily Mail and General Trust said its regional newspaper arm also saw revenues fall by five per cent to £460m, excluding the results of Aberdeen Journals, which it sold to DC Thomson in March.

Advertising income fell by almost eight per cent, with recruitment, motors and retail down 16 per cent, 17 per cent and six per cent respectively.

On the flip side, property advertising revenue was up six per cent.

The figures relate to the financial year ending October 1, 2006.

DMGT chairman Lord Rothermere said: "Whilst Northcliffe is not yet seeing much improvement in advertising conditions, continued falls in revenues are being offset by cost reductions."

He added: "Circulations again declined, although Northcliffe's market share and overall reach remain steady.

"Audited circulation of daily titles fell by 3.8 per cent in the July to December 2005 ABC period and by 4.9 per cent in the January to June 2006 ABC period, with the decline worst in the larger titles.

"These figures, although disappointing, were marginally ahead of the industry results. Northcliffe’s weekly titles, which include some of the UK’s largest weekly titles, under-performed against the rest of the regional press, their audited circulations falling by 3.1 per cent and 4.5 per cent in the same two periods.

"Excluding Aberdeen Journals, total UK publishing revenues fell by £31m, yet operating profits on the same basis were only down £7m due to a substantial reduction in Northcliffe’s cost base.

"Throughout 2006, there was continued focus on improving Northcliffe’s operating efficiency. By September 2006, annualised savings of £35m had been realised, including the closure of two further printing plants in Hull and Lincoln."

He added that, over the past 12 months, Northcliffe’s digital activities have grown substantially, with the number of unique users of its sites climbing 32 per cent to just over two million per month and digital revenues approaching £8m.

As a whole, DMGT saw pre-tax profits rise to £260m.

Group operating profit rose six per cent to £300m.

Back to the Analysis index