Daily Mail and General Trust Plc, the publisher of Daily Mail in the UK, dropped for four days straight last week in London trading, after releasing full-year profit estimates at the lower end of analysts' forecast, Bloomberg reported Thursday.
Daily Mail shares have lost 20 percent within a week. According to analysts' predictions, full-year pretax profit, excluding some items, will total 257 million pounds (US$479 million) to 279 million pounds. Earnings per share are estimated to be 45.6 pence to 51.6 pence. Profit on that basis was 288 million pounds in the previous year, according to the company statement.
The publishing company was hurt by “worsening economic conditions,” which bring in “volatile advertising revenue,” according to the Daily Mail.
The company has tried to make up the print ad revenue loss by making acquisitions in tradeshow management and online job-boards. Sales were up 5 percent in the third quarter on tradeshows and conferences, Daily Mail said in July, Bloomberg reported.
“The business is under huge pressure and there's disappointment about cost savings and a lack of verification from the company,” said Johnathan Barrett, analyst at Kaupthing Singer & Friedlander, according to Bloomberg.
Daily Mail's revenue in the 11 months ending in August increased 4 percent year-over-year. Its fiscal year ends Sept. 28, according to the company Web site, Bloomberg reported.

