DMGT.L Regulatory News (DMGT)

25 January 2018

Daily Mail and General Trust plc ('DMGT')

First Quarter Trading Update FY 2018

DMGT reports revenue up 2% on an underlying# basis in the first three months of FY 2018.

Outlook for the year unchanged and in line with current market expectations~.

* Pro forma reported growth rates are calculated after restating prior year revenues to exclude Euromoney, the B2B business, which ceased to be a subsidiary at the end of December 2016.

Business to Business (B2B)

· Underlying# revenue growth of 4%, with continued growth delivered from Insurance Risk, EdTech, Energy Information and Events and Exhibitions.

· Pro forma* reported revenue reduction of 8%, reflecting disposals and the weaker US dollar, which affected each of the B2B divisions.

· Full Year guidance maintained: low-single digit underlying revenue growth with the adjusted operating profit margin in the mid-teens.

Insurance Risk (RMS)

Underlying revenue growth of 5% was delivered. The roll-out of applications on the RMS(one) platform continued, with encouraging response from clients.

Property Information

Revenue was stable on an underlying basis, as growth from the US businesses was offset by reductions in Europe, given low transaction volumes in the UK property market. Active portfolio management continued with the disposal process for EDR, the US business, ongoing. As announced on 14 December 2017, the Board of Xceligent, the loss-making US business, filed to liquidate the company.

EdTech (Hobsons)

Underlying revenue growth of 12% reflected continued strong growth from each of the businesses: Naviance, Intersect and Starfish. Reported revenue performance was impacted by the disposal of the Admissions and Solutions businesses in September and October 2017.

Energy Information (Genscape)

Underlying revenue growth of 4% was delivered with continued growth from the oil, power and gas businesses, partly offset by declining revenue at the solar business.

Events and Exhibitions (dmg events)

Underlying revenue growth of 7% reflected continued growth from the Big 5 Dubai and ADIPEC shows, two of the business's three large events, which were held in November. Reported revenue performance was affected by the timing of events. As previously indicated, the Full Year revenue growth is expected to be reduced by Gastech, the third large event, due to its cyclical move from Tokyo to Barcelona this year.

Consumer (dmg media)

· Underlying# revenue decline of 1%.

· Reported revenue decline of 3%, reflecting the disposal of Elite Daily and closure of 7 Days in the prior year.

· Full Year guidance maintained: mid-single digit underlying decline in revenues with the adjusted operating profit margin around 10%.

Circulation revenue declined 4%, with volume reductions partly offset by the cover price increase of The Mail on Sunday from £1.70 to £1.80 in October 2017. There was underlying advertising revenue growth of 2% across dmg media, with the 3% decline in print being more than offset by 9% growth from digital^. The Mail Newspapers titles grew their market share and we remain confident in the future growth opportunities at MailOnline∞.

· Net debt at 31 December 2017 was £529 million compared to £464 million at 30 September 2017, reflecting the usual seasonal outflows.

· In December 2017, Standard & Poor's revised its corporate credit rating for DMGT from BBB- to BB+, following the reduction in DMGT's profit margin due to the reduced stake in Euromoney. In January 2018, Fitch reaffirmed DMGT's BBB- investment grade rating.

A conference call will be held with City analysts at 8.00am on 25 January 2018. The dial-in number is +44 (0)20 3936 2999 and the access code is 508552. A recording of the call will be available on DMGT's website at www.dmgt.com.

Investor Briefing and next trading update

DMGT will be hosting an Investor Briefing on 1 February 2018, with presentations on Group strategy, Hobsons, RMS and MailOnline.

The Group's next scheduled announcement of financial information will be its results for the half year ended 31 March 2018, which will be released on 24 May 2018.

About DMGT

DMGT manages a diverse, multinational portfolio of companies, with total revenues of around £1.5bn, 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 and ZPG Plc.

Notes

~ Current City analyst expectations for DMGT for FY 2018 are based on an average £:$ exchange rate of £1:$1.34. Expectations range from £1,406 million to £1,551 million for revenue, from £170 million to £196 million for adjusted profit before tax and from 39.4 pence to 45.9 pence for adjusted basic earnings per share with mean averages of £1,457 million, £181 million and 42.2 pence respectively. 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 charges and fair value adjustments.

# Underlying revenue is revenue on a like-for-like basis, adjusted for constant exchange rates, the exclusion of disposals and closures and for the inclusion of the year-on-year organic growth from acquisitions. For events, the comparisons are between events held in the year and the same events held the previous time. For dmg media, underlying comparisons exclude low margin newsprint resale activities.

* Pro forma reported growth rates are calculated after restating prior year revenues to exclude Euromoney, which ceased to be a subsidiary at the end of December 2016, consistent with the ownership in the current year. Treating Euromoney as a subsidiary for the three months to December 2016, the absolute reported growth rates for the quarter were B2B -33% and Group -23%. For the avoidance of doubt, pro forma growth rates do not include any adjustments for the impact of exchange rates, disposals, closures, acquisitions or the timing of events.

† dmg media's results are for the thirteen weeks to Sunday 31 December 2017 and are compared to the same thirteen week period of the prior year.

^ Underlying advertising growth rates include a decline of 2% across the Mail titles, with an 11% underlying decline in print advertising being partly offset by 9% underlying growth from MailOnline.

∞ Daily Mail's 24.1% market share compared to 23.5% last year and The Mail on Sunday's was unchanged at 22.3%. Circulation market share figures are calculated using ABC's December 2017 and December 2016 National Newspapers Reports, excluding digital subscribers. MailOnline's average global monthly unique browsers during the quarter, excluding other platforms such as Snapchat and Facebook, were 202 million, down 10%, and average global daily unique browsers were 13.7 million, down 5%.

The average £:$ exchange rate for the three months was £1:$1.33 (against £1:$1.24 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