Daily Mail Advertising Revenues Hit Forecasts

Shares in the Daily Mail’s parent company have slumped 9% after it reported a fall in print advertising revenues at its flagship national newspapers.

The “challenging” print market is impacting the success of the Daily Mail’s publisher.

It said the Daily Mail and The Mail on Sunday suffered a £7m, or 15 per cent, plunge in print advertising sales, which was only partly offset by digital advertising revenue rising by £1m, or 8 per cent.

LONDON-U.K. media company Daily Mail & General Trust PLC (DMGT.LN) Thursday warned that its full-year results will be at the lower end of expectations, as weak advertising markets hit its newspapers and even its fast-growing Mailonline website.

“Reported advertising revenues were further adversely impacted by the disposal of the digital recruitment business, Evenbase, which occurred in stages during 2014”, it added.

The market expects Daily Mail & General Trust to report revenues between 1.82 billion pounds and 1.93 billion pounds and adjusted pretax profit between 275 million pounds and 292 million pounds, according to the company.

Circulation revenues fell 3% due to lower volumes, although both The Daily Mail and The Mail on Sunday grew their UK market share – to 23.4% and 22.1% respectively.

Overall underlying revenue at DMGT was 1% lower in the quarter to the end of June.

Its business division, which includes information services as well as an events arm and the financial publisher Euromoney, saw sales rise 4 per cent.