Daily Mail publisher DMGT’s shares dropped seven per cent today after the company scaled back guidance for its information and events businesses.
However, the company reported on some “encouraging” figures from its consumer media division, DMG Media, with MailOnline making “good progress”.
DMGT reported falling revenues and profits in the six months to 31 March today.
Overall turnover was down six per cent to £890m and pre-tax profits were down 18 per cent to £105m.
Within DMG Media, revenue across its Mail businesses – MailOnline, Daily Mail and Mail on Sunday – was up two per cent to £293m and profits were up four per cent to £35m.
DMGT said that “tough newspaper advertising market conditions” had eased a little in the period, with turnover in this area down eight per cent compared with 12 per cent during the 2016 full-year.
Why it’s interesting
While the Mail publications tend to attract most attention at DMGT, DMG Media only makes up around a third of revenues.
And so, despite some encouraging figures from the division, DMGT shares plummeted seven per cent to 699p today after guidance on DMG Information and DMG Events was cut.
Liberum analyst Ian Whittaker said: “The scaling back of top-line full-year guidance for dmg information and dmg events is likely to be taken negatively and raise questions about operational performance.”
Read more: The Daily Mail will cost 5p more from Monday
What the company said
Chief executive Paul Zwillenberg:
DMGT’s performance in the first half was broadly in line with our expectations. We delivered underlying revenue growth for the Group, highlighting the benefit of a diversified portfolio.
We are encouraged by the underlying profit performance at dmg media, where MailOnline continues to increase its revenue, taking real strides on its path to profitability.
Gains across the portfolio are offset by more challenging conditions for some of dmg information’s businesses and by our planned investment in growth areas such as Xceligent.