24 Jan 2019 07:00
24 January 2019
Daily Mail and General Trust plc ('DMGT')
First Quarter Trading Update FY 2019
First quarter trading in line with expectations and outlook for FY 2019 unchanged
Group
· DMGT Group revenue up 2% on an underlying¹ basis
· Robust performance across the more focused portfolio; strategy gaining traction
· Net cash £203m at 31 December 2018
· Outlook for FY 2019 unchanged and in line with market expectations²
Revenue growth v prior year 3 months to 31 December 2018 | Revenue share Q1 FY 2019 | Reported growth | Underlying¹ growth |
Group revenue | 100% | -2% | +2% |
B2B | 55% | -5% | +3% |
Insurance Risk | 15% | +4% | +1% |
Property Information | 15% | -26% | +1% |
EdTech | 5% | +17% | +17% |
Energy Information | 5% | -16% | +1% |
Events and Exhibitions | 16% | +14% | +3% |
Consumer Media³ | 45% | +3% | +1% |
Business to Business (B2B)
· Broad-based underlying revenue growth of 3%; particularly strong EdTech performance
· Reported revenues down 5%, reflecting disposals, partly offset by stronger US dollar
· Full Year guidance maintained: low-single digit underlying revenue growth with adjusted operating profit margin in the mid-teens
Insurance Risk (RMS)
Underlying revenue growth of 1% was achieved, with modest growth in subscriptions partially offset by an expected decrease from one-off projects. The re-architecture of the RMS(one) platform is progressing well and on track.
Property Information
Underlying revenue growth of 1% was achieved, reflecting continued growth from the US businesses. Reported revenue performance was impacted by the absence of EDR, Xceligent and SiteCompli.
EdTech (Hobsons)
Underlying revenue growth of 17% was driven by continued strong performances from Naviance, Intersect and Starfish.
Energy Information (Genscape)
Underlying revenue growth of 1% was achieved with continued growth from the oil and natural gas businesses, partially offset by weaker revenues from the power business. Reported revenue performance was impacted by the absence of the solar business, Locus Energy, which was merged into AlsoEnergy in September 2018 and is now accounted for as an associate.
Events and Exhibitions (dmg events)
Underlying revenue growth of 3% was delivered in the quarter. ADIPEC and Big 5 Dubai, two of the business's three largest events, were both held in November. They collectively achieved underlying growth, despite increasingly challenging conditions in the Middle East.
Consumer Media (dmg media)
· Underlying revenue growth of 1% and reported revenue growth of 3%, in line with our expectations.
· Full Year guidance maintained: mid-single digit underlying decline in revenues with the adjusted operating profit margin in the high-single digits.
Q1³ Revenue growth v prior year | Reported | Underlying¹ |
dmg media | +3% | +1% |
Advertising | +6% | +4% |
Circulation | -3% | -3% |
Circulation revenue declined 3%, with volume reductions partly offset by the cover price increase of the weekday editions of the Daily Mail from 65p to 70p in September 2018. Underlying advertising revenue growth of 4% was achieved across dmg media; a 1% decline in print was more than offset by 10% growth from digital4. The Mail Newspapers titles grew their market shares and we remain confident in the future growth opportunities at MailOnline5, driven by increasing engagement with the direct audience.
· Net cash at 31 December 2018 was £203m compared to £233m at 30 September 2018, reflecting the usual seasonal cash outflows.
· In December 2018, £219m of bond debt matured. As at 31 December 2018, the remaining bond debt was £207m and comprised £7m of the 10.0% bonds, due 2021, and £200m of the 6.375% bonds, due 2027.
For further information
For analyst and institutional enquiries: |
|
Tim Collier, Chief Financial Officer | +44 20 3615 2902 |
Adam Webster, Head of Investor Relations |
+44 20 3615 2903 |
|
|
For media enquiries: |
|
Doug Campbell / Paul Durman, Teneo | +44 20 7260 2700 |
A conference call will be held with City analysts at 8.00am on 24 January 2019. The dial-in number is +44 (0)20 3059 5868. A recording of the call will be available on DMGT's website at www.dmgt.com.
Next trading update
The Group's next scheduled announcement of financial information will be its results for the half year ended 31 March 2019, which will be released on 30 May 2019.
About DMGT
DMGT manages a diverse, multinational portfolio of companies, with total revenues of around £1.4bn, that provide businesses and consumers with compelling information, analysis, insight, events, news and entertainment. DMGT is also a founding investor and the largest shareholder of Euromoney Institutional Investor PLC.
Notes
1 Underlying revenue is revenue on a like-for-like basis, adjusted for constant exchange rates, the exclusion of disposals and closures, the inclusion of the year-on-year organic growth from acquisitions and for the consistent timing of revenue recognition. For events, the comparisons are between events held in the year and the same events held the previous time. For Consumer Media, underlying revenues exclude low margin newsprint resale activities.
2 Current City analyst expectations for DMGT for FY 2019 are based on the nine analysts that have updated their projections since the Full Year 2018 results were released on 29 November 2018. Expectations range from £1,360m to £1,436m for revenue, from £154m to £170m for adjusted profit before tax and from 34.8p to 38.4p for adjusted basic earnings per share with a consensus of £1,393m, £164m and 37.0p. Adjusted results are stated before exceptional items, other gains and losses, impairment of goodwill and intangible assets, amortisation of intangible assets arising on business combinations, pension finance credits and fair value adjustments.
3 dmg media's results are for the thirteen weeks to Sunday 30 December 2018 and are compared to the same thirteen week period of the prior year.
4 Underlying advertising growth rates include a stable performance across the Mail titles, with an 11% underlying decline in print advertising being offset by 11% underlying growth from MailOnline. MailOnline's total revenues grew by an underlying 14%, including the benefit of increased network licensing revenues for DailyMailTV.
5 The Daily Mail's market share of UK retail sales averaged 25.2% during the three months to 31 December 2018 (Q1 FY 2019), an increase from 24.6% in Q1 FY 2018, and The Mail on Sunday's UK retail market share averaged 22.4%, an increase from 21.8% in the three months to 31 December 2017 (Q1 FY 2018). Circulation market share figures are calculated using ABC's National Newspapers Reports, excluding digital subscribers. MailOnline's average global daily unique browsers during Q1 FY 2019, excluding other platforms such as Snapchat and Facebook video, were 12.0 million, down 12% compared to Q1 FY 2018, due to reduced indirect traffic via search and social platforms. The average daily total minutes spent on MailOnline during Q1 FY 2019 was 141 million, down 3% compared to Q1 FY 2018, although minutes spent by the core direct audience continued to grow, reflecting increased engagement.
The average £:$ exchange rate for the three months was £1:$1.29 (against £1:$1.33 in the same period last year).
This trading update is prepared for and addressed only to the Company's shareholders as a whole and to no other person. The Company, its Directors, employees, agents and advisers accept and assume no liability to any person in respect of this trading update save as would arise under English law. Statements contained in this trading update are based on the knowledge and information available to the Group's Directors at the date it was prepared and therefore facts stated and views expressed may change after that date.
This document and any materials distributed in connection with it may include forward-looking statements, beliefs, opinions or statements concerning risks and uncertainties, including statements with respect to the Group's business, financial condition and results of operations. Those statements and statements which contain the words "anticipate", "believe", "intend", "estimate", "expect" and words of similar meaning, reflect the Group's Directors' beliefs and expectations and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and which may cause results and developments to differ materially from those expressed or implied by those statements and forecasts. No representation is made that any of those statements or forecasts will come to pass or that any forecast results will be achieved. You are cautioned not to place any reliance on such statements or forecasts. Those forward-looking and other statements speak only as at the date of this trading update. The Group undertakes no obligation to release any update of, or revisions to, any forward-looking statements, opinions (which are subject to change without notice) or any other information or statement contained in this trading update. Furthermore, past performance of the Group cannot be relied on as a guide to future performance.
No statement in this document is intended as a profit forecast or a profit estimate and no statement in this document should be interpreted to mean that earnings per DMGT share for the current or future financial years would necessarily match or exceed the historical published earnings per DMGT share.
Nothing in this document is intended to constitute an invitation or inducement to engage in investment activity. This document does not constitute or form part of any offer for sale or subscription of, or any solicitation of any offer to purchase or subscribe for, any securities nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract, commitment or investment decision in relation thereto. This document does not constitute a recommendation regarding any securities.
Daily Mail and General Trust plc
Northcliffe House, 2 Derry Street,
London, W8 5TT
www.dmgt.com
Registered in England and Wales No. 184594