Daily Mail owner reports revenues boost

Media group Daily Mail & General Trust today suggested fears over the impact of the credit crisis on advertising revenues were unfounded as it reported further growth across its titles.

The Daily Mail and London Evening Standard publisher posted an 8% hike in advertising revenues for its main national newspaper division in the 11 months to the end of August.

It said it had seen “minimal discernible” impact from the credit crunch and no slowdown after the recent spate of interest rate hikes, although it added it remained cautious of a possible hit to property advertising.

The increase in advertising revenues comes despite a fall in circulation at both the Daily Mail and Mail on Sunday, down 2% and 0.7% respectively in the six months to the end of August.

The company reported a 1% dip in advertising revenues at its Northcliffe local media arm, which includes titles such as the Bristol Evening Post and Plymouth Herald.

But it said the trend was improving, with revenues over the past three months up by 2.4%, having also been up by 0.3% in the quarter to June.

Property advertising revenues grew by 7.9% in the 11 month period, however the rate of growth is slowing, according to the group.

Daily Mail and General Trust said: “We are to date seeing no slow down in consumer advertising arising from higher UK interest rates, though we are wary about the impact of these rises on advertising generally and additionally of home information packs on property advertising.”

Revenues from digital publishing in the local media business are up 74%, it said.

Year-on-year revenues growth of more than 15% was reported for its business information arm, which the group recently revealed accounted for 52% of interim operating profits.

The company banked a 24% rise in half-year pre-tax profits in the six months to April 1, at £135.3 million.

But it said on unveiling the results in May that its Evening Standard title saw an 18% fall in circulation as it came under pressure from free publications London Lite, which it also owns, and rival thelondonpaper.

The group confirmed today that there had been no let up in competition in the London newspaper market.