(Alliance News) - Daily Mail & General Trust PLC on Thursday said total revenue dropped in its first quarter but its newspaper publishing unit saw growth, helped by a rise in advertising income and amid a contribution from recently-acquired title 'i'.
The Daily Mail newspaper owner said that in the period to December 31, total revenue was 4% lower year-on-year. On an underlying basis, however, it climbed 1%.
Underlying revenue uses constant currency, does not include disposals or closures and makes adjustments for timing of revenue.
In the Consumer Media division - which houses newspapers the Metro, the Daily Mail and the Mail on Sunday, as well as MailOnline - underlying revenue grew 2%, including a 17% rise in digital advertising and even a 3% rise in print advertising, in what the company called a "benign market environment".
Reported revenue in the unit climbed 2%, with a 3% decline in circulation offset by a 10% rise in advertising.
The Consumer Media unit included a one-month contribution from i, the newspaper it acquired for GBP50 million at the end of November.
The UK monopoly regulatory on Wednesday said it will invite comments to review whether the acquisition from JPI Media Ltd breaches competition rules.
In its Business-to-Business unit, revenue fell by 8%, though on an underlying basis it climbed 1%.
Daily Mail & General held its full-year guidance, expecting earnings inside the range forecast by analysts.
Revenue is expected to come in between GBP1.33 billion and GBP1.36 billion with adjusted pretax profit between GBP99 million and GBP110 million.
Total revenue for the year ended September 30, 2019 was GBP1.34 billion, so it could fall year-on-year by as much as 0.4%.
Adjusted pretax profit could fall by as much as 46% year-on-year from GBP145 million.
Shares in the company were 0.7% lower at 817.50 pence each in London on Thursday morning.
By Eric Cunha; ericcunha@alliancenews.com
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