(Alliance News) - Daily Mail & General Trust PLC said Thursday its first quarter revenue was in line with internal expectations but noted its trading environment remains "uncertain".
Despite the short-term uncertainty, the media company still holds confidence in its long-term strategy.
In the final three months of 2020, DMGT's first quarter, group revenue dropped 20% year on year. The firm's B2B unit saw revenue fall 30%, while Consumer Media revenue fell 9%.
Within the B2B unit, Insurance Risk revenue was down 3% and EdTech was down 2%. Property Information, however, improved 20%. Dragging the unit down was a 95% revenue drop in Events & Exhibitions.
Two of the company's largest events are usually held in November, DGMT noted, but, as announced following the onset of Covid-19, Big 5 Dubai was postponed to September 2021 and the ADIPEC exhibition, its largest event, was cancelled.
In Consumer Media, Advertising revenue was down 15% and Circulation revenue was 2% lower.
"Circulation revenue declined an underlying 7%, reflecting expected volume reductions partly offset by the benefit of a 10p cover price increase of the Saturday edition of the Daily Mail to GBP1.10 in January 2020. On a reported basis, circulation revenue declined by 2%, benefitting from the 'i' acquisition. The Mail newspapers continued to grow their market shares," DGMT added.
Consistent with DMGT's long-term approach, dmg media acquired three printing plants in October 2020, which it said "strategically strengthens" its position in the newspaper production market.
Looking ahead, DGMT said its short-term outlook for the UK Property Information, Consumer Media and Events & Exhibitions businesses "remains difficult to predict".
"The board is confident that DMGT's diversified portfolio is well positioned to continue to withstand the present uncertainties and that its long-term approach will continue to create value for its shareholders," the company added.
Shares in Daily Mail were down 0.9% in London on Thursday at 813.00 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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