Daily Mail publisher DMGT has reported advertising growth in its last quarter, as online spending offset a decline in print.
DMGT, around a third of whose business is in consumer media, reported group revenue was flat on an underlying basis in the three months to June.
Turnover was down in its B2B, risk management solutions (RMS) and Dmg Information businesses. But it reported growth in Dmg Events and Dmg Media on an underlying basis.
Within Dmg Media, advertising revenues were up five per cent on an underlying basis. While ad turnover was down five per cent in print, covering the Daily Mail, Mail on Sunday and Metro, this was offset by 27 per cent growth online.
Mail Online, which is thought to be the world’s largest English newspaper website, saw its advertising revenues increase by £6m on an underlying basis.
DMGT said this reflected “continued encouraging growth in both the UK and the US”. The growth offset a £3m decline in ad revenue across the Mail newspapers.
In previous periods, advertising gains online have failed to make up for declines in print.
Despite the advertising growth, other areas of the business had dragged DMGT shares down two per cent to 636p at the time of writing.
The group’s performance during the third quarter has been in line with expectations. Market conditions remain challenging for some specific companies or parts of businesses.
DMGT continues to benefit from being a diversified portfolio operating in multiple sectors across B2B and consumer markets. The focus remains on improving operational execution, completing the strategic portfolio review and enhancing our financial flexibility during this period of transition.