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Good half-year performance expected from DMGT

Northcliffe Media’s parent company is expecting to report increased profits for the half year which ends on April 1.

Daily Mail and General Trust is expecting to see sharper growth in this period than for the year as a whole due to acquisitions and the timing of the results.

Northcliffe itself has offset falls in revenues by cost reductions and has recently seen its first year-on-year advertising revenue increases for nearly two years.

Its programme of organisational and structural improvements is “largely complete” with the targeted annual cost reduction of £45m due to be achieved during the next quarter.

Northcliffe is also continuing to see a gradual improvement in advertising trends, with advertising revenues for the five months to February (excluding Aberdeen Journals which was sold in April 2006) three per cent below the comparable period last year. Circulation revenues were down two per cent.

Advertising revenues at Associated Northcliffe Digital have risen by 141 per cent year-on-year (48 per cent excluding acquisitions).