Daily Mail ad revenues rise
By Leah McBride Mensching, Thursday 27 September 2007 at 22:47 :: Advertising :: #624 :: rss
The Daily Mail and General Trust Plc Thursday announced it is seeing rising advertising revenues so far this year, and it expects end-of-the-year results to meet financial forecasts.
DMGT, which publishes the London Evening Standard, Daily Mail and the Northcliffe regional newspaper group, made public in a trading update Thursday that its total advertising revenues in the six months through the end of August rose 8 percent from the same period last year.
The rise comes despite a downturn in circulation for both the Daily Mail and the Mail on Sunday, down 2 percent and 0.7 percent respectively, the Daily Telegraph reported Thursday.
Although ad revenues are on the rise, circulation revenues for the 11 months ending in August were 1.2 percent lower than the same period the year prior, in spite of publishing costs dropping 3 percent. Digital publishing revenues for DMGT, however, have risen 74 percent, according to the report.
The group's shares climbed by just over 1 percent in early morning trading Thursday, up 7, to 655p.
In a Wednesday Morgan Stanley report, the bank lowered its earnings per share (EPS) forecast on DMGT by 7 percent, and target valuation by 6 percent to 780p to reflect an expected dip in advertising revenues in the newspaper industry next year.
Analyst Alex DeGroote of Panmure Gordon maintained his "buy" rating on Daily Mail & General Trust (DGW.MUN) Wednesday, with a target price set to 970p, according to a Newratings report.
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