(Alliance News) - Daily Mail & General Trust PLC on Thursday reported a first-half drop in revenue and profit but showed signs of an improving performance, as it prepares to cash in on its Cazoo stake.
Shares were up 5.1% to 882.00 pence in London.
Revenue in the six months ended March 31 fell 15% year-on-year to GBP546.8 million from GBP641.5 million. Pretax profit was down 45% year-on-year to GBP42.4 million from GBP77.0 million.
The London-based publisher and events company declared an interim dividend of 7.6p per share. This is an increase from last year's interim dividend of 7.5p per share, in line with DMGT's policy for a "predictable dividend growth trajectory unaffected by fluctuations in earnings."
DMGT reported a solid performance for the Daily Mail newspaper and sales and profit growth at MailOnline.
But the Metro newspaper, which is given away for free on public transport, was hit by the pandemic, as was the company's events and exhibitions business.
The results showed signs of improvement since DMGT's first-quarter trading update. Underlying revenue was down 15% year-on-year in the first quarter, but that has moderated to a 12% decline for the first half.
The company continued to withhold guidance for the full year, saying it is "difficult to predict one likely outcome" as it operates in several markets affected by the pandemic.
But DMGT can look forward to a payday from its investment in used car retailer Cazoo. The stake is worth USD1.35 billion, compared to DMGT's market capitalisation of GBP1.82 billion. DMGT is due to receive cash and shares after Cazoo goes public in New York through a special purpose acquisition company, a deal expected to complete in the fourth quarter.
"From a financial and operational perspective, DMGT delivered a solid performance in the first half of the year," Chief Executive Paul Zwillenberg said.
By Ivan Edwards; ivanedwards@alliancenews.com
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