Independent boss attacks Daily Mail group over Dublin freesheet plans
Mr O’Reilly said the Daily Mail & General Trust (DMGT), owners of the Metro title and also Ireland on Sunday, were delusional if they thought they could make an assault on the Irish Independent and Evening Herald’s market share.
Metro, which has been a huge success in London, is expected to be printed by the Irish Times and Mr O’Reilly said his company would respond by launching his own freesheet.
“There will be a fulsome response. It is a remarkable development for both those companies. The Irish Times has only recently achieved profitability and for some reason now wished to jeopardise that,” Mr O’Reilly said.
Mr O’Reilly made his comments as Independent reported a 12% rise in operating profits for the first six months of the year to €141 million.
Turnover for the year was ahead by nearly 10% to €800.8 million, with only its British operations showing flat profits.
The company said operating profits in Ireland were 16.4% higher in the first half at €44.7 million on revenues of €207m helped by both advertising and circulation gains.
However, the company said it has no plans to scrap the broadsheet edition of the Irish Independent despite an increasing focus within the paper on the tabloid edition.
“Producing the broadsheet and tabloid has no adverse impact on our cost profile whatsoever. We will let the market decide on what format they want,” Mr O’Reilly.
In Britain, which includes its Northern titles, sales were up €4.3m to €104.3m with operating profits flat at €5.8m. This was because advertising revenues in the North were under pressure.
In New Zealand and Australia profits were €81.6m, while operating profits in South Africa were €15m.
The company hiked its dividend by 25% to 3.75 cent per share, reflecting confidence in future earnings growth, Mr O’Reilly added.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
