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Profits rise for Northcliffe in "tough times"

Northcliffe Newspapers has increased its operating profits by four per cent to £93.7m on turnover which is up two per cent to £484m.

The announcement of parent company Daily Mail General Trust’s preliminary results for the year showed the regional newspaper company’s circulation revenues up three per cent.

The decline of volume of sales was better than the industry average thanks to editorial and marketing investment in the titles.

Weekly newspapers performed well, according to the trading statement, with revenues up nine per cent – and most having an increased circulation.

Advertising revenues grew by three per cent but contract printing profits were down £1.9m due to more third party business being taken “in-house”.

The company revealed a major investment in press facilities in the Midlands was almost complete, with additional copies of the Daily Mail now being printed there.

Digital publishing moved further towards breakeven, as more print advertisers opted also to advertise on the local Internet pages.

DMGT as a whole reported an increase in adjusted profits from £182.5m to £185.5m, despite “continued tough trading conditions” for a number of the group’s divisions.

The preliminary results statement said: “We are particularly pleased at the progress being made by many of the group’s newer businesses, with the star performers this year being DMG Information’s business to business companies.

“Of this year’s operating profit, 37 per cent has been generated by the Group’s non-newspaper divisions, compared with eight per cent ten years ago.

“Nevertheless newspapers remain at the heart of DMGT and will continue to do so, given the bright future that we believe ours have.”

The company said that Associated Newspapers had a successful year, despite its operating profits falling from £80.3m to £9.8m due mostly to increased revenue investment at the Evening Standard.

Both the Daily Mail and The Mail on Sunday increased their average circulations against a declining market.

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