DMGT.L Regulatory News (DMGT)

28 May 2020

Daily Mail and General Trust plc ('DMGT')

Half Yearly Financial Report for the six months ended 31 March 2020

Strong first five months of trading; outlook remains unclear due to Covid-19

· Stable Group underlying¹ revenue; Covid-19 and planned B2B investment impacting profit:

o Revenue underlying growth 0%

o Cash operating income² down 17% underlying; 11% margin

o Adjusted³ operating profit down 22% underlying; 9% margin

o Adjusted profit before tax down 20% underlying

· Almost all second half events cancelled or postponed: £8m of accelerated costs recognised in H1 2020

· Adjusted EPS down 33%; reflects reduced profits, increased tax rate and reduced number of shares

· Statutory4 revenue £683m, statutory profit before tax £80m and statutory EPS 89.7p

· Active portfolio management:

o Disposal of Energy Information (Genscape) and BuildFax

o Acquisition of the 'i' and OneSearch Direct; increased investment in Cazoo

· Interim dividend increased +3% to 7.5p, reflecting first half trading performance

· Strong financial position maintained: pro forma net cash £163m5 and £380m of committed undrawn bank facilities; statutory net cash £206m

· B2B subscription business remain resilient; Covid-19 pandemic causing challenging market conditions for Consumer Media, UK Property Information and Events & Exhibitions

· Suspension of formal guidance continues

Paul Zwillenberg, CEO, commented:

"DMGT delivered a solid performance in the first half of the year, reflecting a strong first five months of trading followed by one month of weakness due to the Covid-19 pandemic. Since February, we have moved quickly to protect our stakeholders and actively support our portfolio of businesses.

The Group benefits from its balanced portfolio, supported by a strong balance sheet. Our B2B subscription businesses, Insurance Risk, US Property Information and EdTech, continue to trade well, showing growth and resilience. Our Consumer Media, UK Property Information and Events and Exhibitions have been significantly more impacted by the Covid-19 crisis.

As you would expect, we have taken measured actions on investments and costs, both at a Group and individual business level, but our strategy remains the same. We will continue to invest, in a disciplined manner, through the cycle where we are confident of the returns. All of our businesses are market leading and I am highly confident that they will come out of this global crisis stronger and fitter.

I am immensely proud of the initiatives our businesses have introduced to support our communities and stakeholders, in particular the Mail Force charity which is supplying PPE to the NHS and has raised over £8m to date. Our businesses are providing free environmental information for NHS Nightingale hospitals, education tools to US students and advertising space for small businesses. Also, DMGT has not taken any government support.

Throughout this crisis, DMGT has been able to rely on the incredible adaptability and dedication of all our employees, customers and business partners. Their agility has enabled DMGT to transition seamlessly through exceptional circumstances. We have maintained uninterrupted product delivery across the entire Group, other than the required cancellation of events.

The health and wellbeing of our employees remains a priority as we prepare to navigate a post-Covid future and I would like to thank them all for their continued hard work and commitment to the success of DMGT.

The severity and duration of the Covid-19 crisis remains unclear but DMGT has a robust balance sheet, access to significant funding and a diversified portfolio. This gives me, and the Board, confidence that we will weather the current storm and withstand a sustained period of global economic uncertainty."

Half Year 2020 Financial Results Summary

Segmental performance:

Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers.

* The DMGT Group statutory operating profit shown above excludes the share of operating profits from joint ventures and associates.

· Revenue of £690m; stable underlying performance: including growth from EdTech, Insurance Risk, US Property Information. Events & Exhibitions, Consumer Media and UK Property Information were adversely affected by the Covid-19 pandemic, though the former still grew in the period.

· Cash operating income (Cash OI)2 £75m; underlying decrease -17%: reduction due to the impact of Covid-19 and planned increased investment in B2B businesses, notably Insurance Risk and Property Information. Includes £8m of accelerated costs relating to second half events that have been cancelled or postponed.

· Adjusted operating profit £65m; underlying decrease -22%: reflecting B2B investment and impact of Covid-19; reduced B2B profits partly offset by Consumer Media growth.

· Statutory operating profit £37m: compared to £38m in the prior year.

· Losses from JVs and associates: following the distribution of DMGT's stake in Euromoney in April 2019, the share of adjusted operating losses was £7m compared to profits of £18m in the prior year.

· Adjusted profit before tax (PBT) £56m: down an underlying -20%, including £6m underlying reduction in finance costs to £2m. Statutory PBT £80m (H1 2019 £50m).

· Tax: adjusted tax charge £22m (H1 2019 £19m); with the adjusted effective tax rate increasing more than expected to 39%. The increase is due to reduced profit expectations for the second half of the year and the increased significance of tax-adjusting items relative to the Group's adjusted profit before tax. The statutory tax charge was £6m.

· Earnings per share: adjusted EPS down -33% to 15.0p (H1 2019 22.5p), including accelerated event costs and the reduced number of shares, following the April 2019 Euromoney distribution and special dividend. Statutory EPS was 89.7p (H1 2019 12.9p) reflecting the profit on disposal of the Energy Information business.

· Pro forma net cash5 was £163m as at 31 March 2020, adjusted to exclude £117m cash expected to be made available to the pension schemes and £74m of lease liabilities recognised following the adoption of IFRS 16. The net cash:EBITDA ratio was 1.1 on this basis. Excluding the adjustments described above, the net cash and net cash:EBITDA ratio as at 31 March 2020 were £206m and 1.4 respectively.

· Portfolio management: the disposal of Genscape, the Energy Information business, in November 2019 reduced DMGT's sector exposure from six to five, further increasing the focus of the Group's portfolio. BuildFax, the US Property Information business, was sold in October 2019. The Group also strengthened its position in existing sectors with bolt-on acquisitions. In Consumer Media, the 'i', the UK national newspaper and website, was acquired in November 2019. Landmark Information Group, the UK Property Information business, acquired OneSearch Direct in December, strengthening its conveyancing capabilities. In March 2020, DMGT increased its stake in Cazoo, which is held as an investment, to c.23%. Cazoo is an online start-up business that aims to transform the way people buy used cars in the UK. Most recently, dmg events, the Events and Exhibitions business, acquired 11 small events from CWC Group in April 2020, strengthening its leading position in the energy sector.

· Outlook: the Insurance Risk, US Property Information and EdTech businesses continue to deliver revenue growth, up an underlying +5% in April 2020. Covid-19 is adversely affecting the Consumer Media, UK Property Information and Events and Exhibitions businesses.

o In April 2020, total Group revenues decreased by an underlying -23% and the Group made an adjusted operating loss of £3m (April 2019: £5m adjusted operating profit).

o The Consumer Media business delivered a mid-single digit negative operating margin in April 2020 with revenues down an underlying -33%. Revenues were down an estimated

-30% in the first four weeks of May 2020 and a small loss is expected in the month.

o There has been a marked reduction in both commercial and residential property transactions in the UK, which is adversely affecting the UK Property Information business. Landmark's revenues were down an underlying 44% in April and the business made an operating loss in the month.

o The Events and Exhibitions business has cancelled or postponed all events scheduled from March through to August, as well as the Gastech event previously scheduled for September 2020. It is increasingly likely that the remaining events still scheduled to be held in September and some events scheduled in FY 2021 will be postponed or cancelled. The business is expected to benefit from its insurance cover, though the timing of recognition remains uncertain.

As the duration and severity of the impact of the Covid-19 pandemic remains unclear, with a range of possible outcomes, it remains prudent to not provide formal guidance. Guidance provided in December 2019 was suspended on 26 March 2020.

There is currently a high level of uncertainty about the general business environment. The Board decided to follow its dividend policy in respect of the interim dividend, reflecting the first half trading performance. Future dividends will reflect the prevailing economic outlook and the trading of our businesses.

The Board is confident that DMGT is positioned to withstand the uncertainties of the period ahead. The Group benefits from being a diverse portfolio, operating across multiple sectors, geographies and business models. DMGT's balance sheet strength, including £361m of gross cash and £380m of committed undrawn bank facilities, provides resilience and enables it to continue to adopt a long-term approach.

A presentation of the Half Year Results will be given at 9.30am on 28 May 2020 and will be followed by a question and answer session for City analysts and investors. The presentation will be available on our website at www.dmgt.com/webcasthy20 and the dial-in number for questions is +44 (0)330 336 9411, confirmation code 9513118.

The Group's next scheduled announcement of financial information will be its nine month trading update on 23 July 2020.

Market Abuse Regulation

The information communicated in this announcement includes inside information.

About DMGT

DMGT manages a portfolio of companies that provide businesses and consumers with compelling information, analysis, insight, events, news and entertainment. The Group takes a long-term approach to investment and has market-leading positions in consumer media, insurance risk, property information, education technology and events & exhibitions. In total, DMGT generates revenues of around £1.3bn.

Notes

1 Underlying growth rates are on a like-for-like basis, see pages 26 to 28. Underlying revenues, cash operating income2 and operating profits are 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. Cash operating income, operating profits and finance costs are also adjusted in respect of IFRS 16, so the calculation methodology is consistent across periods. For events, the comparisons are between events scheduled to be held in the six-month period and the same events held the previous time. Consequently, underlying growth rates include all costs for events that were scheduled in March 2020 and were cancelled or postponed, but exclude all costs associated with events originally scheduled for later in the year. For Consumer Media, underlying revenues exclude low margin newsprint resale activities. The underlying change in the share of operating profits from joint ventures and associates excludes Euromoney Institutional Investor PLC.

2 Cash operating income (Cash OI) is calculated by adding back depreciation and amortisation expenses, which are non-cash items, to adjusted operating profit and then deducting capital expenditure. The depreciation charge on the additional right-of-use assets, which has resulted since 1 October 2019 from the adoption of IFRS 16, the lease accounting standard, is not added back when calculating Cash OI.

3 Unless otherwise stated, all profit and profit margin figures in this Interim Management Report refer to adjusted results and not statutory results. The Board and management team use adjusted results, rather than statutory results, to give greater insight to the financial performance of the Group and the way that it is managed. Similarly, adjusted results are used in setting management remuneration. 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. For reconciliations of statutory profit before tax to adjusted profit before tax and supporting explanations, see pages 21 to 23.

4 The statutory results are IFRS figures before any adjustments. They exclude discontinued operations, namely the Energy Information business, Genscape, other than earnings per share.

5 The actual net cash position as at 31 March 2020 was £206m including £74m of additional lease liabilities in respect of the adoption of IFRS 16, the lease accounting standard, and the net cash:EBITDA ratio was 1.4. Excluding the additional lease liabilities, net cash could have been £280m. However, £117m has been made available to the Group's pension schemes but continues to be held as cash by DMGT. The pro forma net cash of £163m as at 31 March 2020 is stated after adjusting net cash to exclude the £117m. The pro forma net cash:EBITDA ratio was 1.1.

The pro forma net cash of £163m includes gross cash of £361m, £203m bond debt and £4m net cash in respect of collateral, loan notes and derivatives. Gross cash includes cash, cash equivalents and short-term deposits, net of overdrafts, and excludes the £117m made available to the pension schemes.

~ Percentages are calculated on actual numbers to one decimal place.

The average £: US$ exchange rate for the first half of the year was £1:$1.28 (against £1:$1.29 last year). The rate at the Half Year end was $1.24 (2019: $1.30), compared to $1.23 at the September 2019 year end.

Daily Mail and General Trust plc

Northcliffe House, 2 Derry Street,

London, W8 5TT

www.dmgt.co.uk

Registered in England and Wales No. 184594

Group Review Half Year 2020

Covid-19 update

The health and wellbeing of DMGT's employees remains a top priority. Throughout the crisis, DMGT has been able to rely on the adaptability and dedication of all employees, customers and business partners. Their agility has enabled DMGT to transition seamlessly through exceptional circumstances. DMGT has also not taken any government financial support.

Supporting all stakeholders: Swift action was taken to ensure a seamless and safe transition to remote working and we have maintained uninterrupted product delivery across the entire Group, other than the required cancellation of events.

We are proud of the initiatives our businesses have put in place to support the communities that we serve. We established Mail Force, a charity to source personal protective equipment (PPE) for the NHS, in April and it has raised over £8m to date, including generous donations from the Mail's readers and over £1m from DMGT. Landmark also provided free access to environmental information to support the design of NHS Nightingale hospitals. In the US, more than three million students are benefitting from the free provision of Naviance Curriculum by Hobsons, the EdTech business. Our Consumer Media titles are also playing an important role in keeping readers informed and early on in the crisis we committed to operating Metro at a loss to ensure the provision of free newspapers for keyworkers. The titles are also supporting advertisers, providing small businesses with over £5m worth of free space.

Covid-19 impact on recent trading: The Board does not consider it helpful, in normal circumstances, to provide information on short-term trading. However, given the exceptional nature and uncertain duration of the Covid-19 crisis, some financial information for the month of April 2020 is being provided in this instance to inform investors of recent trading dynamics.

In April, Group revenues decreased by an underlying 23% compared to the prior year and DMGT made an adjusted operating loss of £3m in the month, compared to a £5m adjusted operating profit in April 2019. The Insurance Risk, US Property Information and EdTech businesses remain resilient and grew an underlying 5% in April. The Covid-19 pandemic is adversely affecting the Consumer Media, UK Property Information and Events & Exhibitions businesses and their combined revenues decreased by an underlying 36% in the month.

Consumer Media is experiencing a particularly difficult advertising market as well as reduced circulation volumes due to the UK's lockdown restrictions. Consumer Media revenues were down an underlying 33% in April6 and are estimated to be down an underlying 30% in the four weeks to 24 May 2020. The weak revenues resulted in a Consumer Media operating loss in April and a negative adjusted operating margin in the mid-single digits in the month6, though the business is currently expected to improve to a small loss in May 2020.

UK property transaction volumes are exceptionally low currently due to the effect on property viewings of the lockdown measures introduced in late March. The restrictions on the residential market were eased on 13 May 2020 but it will take time before the benefit flows through to a rise in housing transactions. The revenues of Landmark, the UK Property Information business, are directly affected by these depressed transaction volumes and were down an underlying 44% in April and the business made an operating loss in the month.

The Events and Exhibitions business has cancelled or postponed all events scheduled from March through to August as well as the Gastech event previously scheduled for September 2020. Some relatively minor events are still scheduled to be held in September but this may change. dmg events will continue to incur costs during the second half of FY 2020 and while the business is expected to benefit from the insurance cover that it has in place, the timing is uncertain.

Operational actions: A number of operational actions have been implemented in response to Covid-19. A scheme has been introduced across Consumer Media, Landmark and the Corporate centre to replace a portion of the April to June 2020 salary of higher earners with equity in DMGT. While the cost implications are not material, this action will support the Group's cash generation and the scheme will help align employees' and shareholders' interests. DMGT has not taken any government financial support and no employees have been furloughed.

Variable costs have decreased naturally, notably in Consumer Media and UK Property Information, due to reduced revenues. There have also been measured reductions in discretionary spending, further supporting the Group's cash generation. DMGT continues to pursue its disciplined investment programme and has reviewed it carefully in light of the current environment. Investment initiatives have been re-prioritised, reflecting changing expected returns and the focus on ROI, particularly as sectors experience faster digitisation trends. Each business has individual contingency plans in place, encompassing operational and strategic measures, which will be deployed in reaction to the evolving circumstances.

Confidence in DMGT's future: The Board's confidence in the long-term future of DMGT reflects the Group's diverse portfolio of market-leading businesses and their high-value proprietary content, as well as its strong balance sheet, giving resilience and flexibility. The increased focus of the portfolio over the past few years and the strategic emphasis on operational execution and cash operating income have made the Group more adaptable and agile. We are pleased that this strategy has served the Group well during these difficult times. Consistent with the Group's long-term perspective and strong financial position, DMGT continues to invest, in a disciplined way, to create future value.

Group Financial Review Half Year 2020

This interim management report focuses on the adjusted results to give a more comparable indication of the Group's business performance. The adjusted results are summarised below:

Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers.

Revenue

Group adjusted revenue for the six months to 31 March 2020, including discontinued operations, was £690m, a decrease of 5%, reflecting the effect of disposals. On an underlying¹ basis, revenue was in line with the prior year despite weak trading during March. Underlying growth was delivered in subscriptions, digital advertising and events, but was offset by the expected decline in print advertising, circulation and transactions.

Cash operating income²

Cash operating income ('cash OI') of £75m decreased 22% in absolute terms and 17% on an underlying basis. Cash OI is considered by the Board to be a good indicator of the underlying cash generation of the businesses and it is included as a core element of the incentive plans for all senior management teams. The underlying decrease reflects planned investment in Insurance Risk, Property Information and EdTech and the cancellation of Events and Exhibitions' March events. The absolute reduction also includes the accelerated recognition of £8m of costs relating to cancelled or postponed events that were scheduled for the second half of the year. The Consumer Media division delivered stable underlying cash OI and Corporate cash operating costs decreased by £4m. The Group cash OI margin was 11% compared to 13% in the first half of the prior year.

Operating profit

Adjusted operating profit of £65m decreased 28% in absolute terms and by 22% on an underlying basis, primarily due to the investment in the B2B portfolio but also the adverse impact of Covid-19 in March. The reduction in profits was exacerbated by continuing amortisation costs whilst a larger proportion of technology expenditure was expensed directly to the income statement, rather than being capitalised, compared to previous years. The Group underlying performance included profit growth from Consumer Media and a £1m reduction in Corporate costs. The adjusted operating margin was 9%. Excluding the accelerated recognition of £8m of event costs, the operating margin would have been 11%, compared to 12% in the first half of the prior year, and consistent with expectations at the start of the year.

Profit before tax

Adjusted profit before tax was £56m, a decrease of 44% in absolute terms and 20% on an underlying basis. There was a £25m reduction in the share of operating profits from joint ventures and associates, following the distribution of DMGT's stake in Euromoney, and a £1m increase in net losses on an underlying basis. There was a £6m underlying reduction in net finance costs following the maturing of bonds in December 2018. The adjusted tax charge was £22m, a 12% increase on last year, with the increase in the effective tax rate to 39% more than offsetting the impact of the reduction in adjusted profit before tax. Adjusted basic earnings per share of 15.0p decreased by 33%.

The statutory profit before tax for the period was £80m, an increase of £30m on the prior year, primarily due to profit on the disposal of Property Information businesses. Statutory basic earnings per share were 89.7p, a 76.8p increase on the prior year, including the benefit of the profit on disposal discontinued operations, namely Genscape, the Energy Information business.

The table below sets out the reconciliation from statutory profit before tax to adjusted profit before tax. More detail and explanations are provided on pages 21 to 23.

Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers.

Business Review

Business to Business (B2B)

B2B revenues totalled £345m, up 2% on an underlying basis. The growth from Insurance Risk, EdTech and Events and Exhibitions was partly offset by Property Information. Revenues decreased by 9% in absolute terms due to disposal of the Energy Information business, Genscape, in November 2019 and the disposal of certain Property Information businesses during 2019.

B2B cash operating income decreased an underlying 30% to £45m and the overall B2B cash operating income margin reduced to 13%. Excluding £8m of accelerated event cancellation costs the cash operating income margin was 15%. The underlying reduction was primarily due to planned investment, notably in Insurance Risk, Property Information and EdTech, although the performance was also adversely affected by the cancellation of events in March due to Covid-19. Similarly, B2B operating profits were down 35% underlying and the overall B2B operating margin decreased to 11%, or 14% excluding accelerated event costs, reflecting the trends described above.

Outlook: total B2B revenues were down an underlying 11% in April. The Insurance Risk, US Property Information and EdTech businesses are largely subscription based with high renewal rates. The demand for their products and services remains robust given that they are integral to the success and efficiency of their customers' workflows. It is likely that, as a result of Covid-19, some customers will take longer to make purchasing decisions or delay projects and EdTech customers' budgets may come under pressure, which could impact revenue growth. Collectively across the three businesses, revenues grew an underlying 5% in April, compared to 4% in the first half of the year.

The impact of Covid-19 has already resulted in a marked reduction in the volume of UK property transactions, though some transactions have been taking place due to the pre-coronavirus pipeline. This has already significantly affected Landmark, the UK Property Information business, where lockdown measures preventing property viewings were introduced in March. The benefit of the restrictions being eased on 13 May 2020 will take time to stimulate transactions and the market may deteriorate further in the coming weeks.

The Covid-19 pandemic has also resulted in the cancellation or postponement of all events scheduled by the Events and Exhibitions business until August 2020 inclusive. Gastech, which was scheduled for September 2020, and Big 5 Dubai, which was scheduled for November 2020, have both been postponed and there is a risk that further events will be cancelled or postponed in due course. The business is, however, expected to benefit from the insurance cover that it has in place, though the timing of recognition is uncertain.

Insurance Risk: RMS

The Insurance Risk business, RMS, provides solutions that help insurers, reinsurers, brokers, financial markets and public agencies evaluate and manage catastrophe risks throughout the world. Revenues grew 2% on an underlying basis, with continuing high renewal rates from customers and a strong performance in analytical services. Reported revenues grew 3% to £123m, including the benefit of the marginally stronger US dollar.

Investment has been increasing as planned, to accelerate the delivery of the product roadmap. Cash operating income was £22m and the cash operating income margin decreased to 17%, as the increased investment was partly offset by reduced capital expenditure. The adjusted operating margin decreased from 22% to 16% in the period.

In May 2020, RMS held a virtual version of its annual customer conference, Exceedance, to an audience double that of the May 2019 event. At the conference, RMS announced significant new product and model releases on Risk Intelligence, its open and flexible cloud-based platform launched in May 2019. The release of Risk Modeler 2.0 marks a major milestone, allowing customers to run RMS's existing RiskLink natural catastrophe models as well as high-definition (HD) models on the Risk Intelligence platform, combining familiar features with an enhanced, intuitive user interface. Risk Modeler 2.0 delivers significantly faster model execution and enables real-time risk analytics, supporting RMS's expansion into the large and high-growth Insurance Risk Analytics market. Risk Modeler 2.0 will be made available to customers in June 2020 and all of RMS's HD models will be added by September 2020.

Risk Intelligence also offers a suite of advanced applications that are tailored for specific analytics in support of portfolio management and underwriting tasks. ExposureIQ 1.3 will also be released in September 2020 and will help customers gain a quicker assessment of potential losses before, during and after a catastrophic event. TreatyIQ, being made available by December 2020, harnesses Risk Intelligence's scale and architecture to enable the analysis of complex reinsurance portfolios. Model development also continues, with a new HD Europe Convective Storm model released in May 2020 as well as updated versions of four other existing HD models being made available on Risk Modeler 2.0 by September 2020.

Outlook: customer feedback on the Risk Intelligence platform and related products remains encouraging. Although the Covid-19 pandemic may result in customers taking longer to make purchasing decisions, there has been no material impact to date and the business remains on track.

Property Information

The Property Information portfolio of businesses operates in the UK, US and Ireland providing commercial and residential property related products and services. Revenues decreased by 2% on an underlying basis. Growth from the US business, Trepp, was more than offset by decreased revenue at the significantly larger European business, Landmark Information Group (Landmark). The 16% reported decrease in revenues reflected the disposal of On-geo, the German business, in June 2019 and BuildFax, the early-stage US business, in October 2019.

Landmark faced challenging conditions in the UK throughout the period due to low property market transaction volumes. In March 2020, the property market deteriorated further due to the implementation of the Covid-19 lockdown restrictions, which also affected viewings of properties. In the context of these difficult market conditions, Landmark made encouraging strategic and operational progress in the period, strengthening its product lines and market position. In December 2019, Landmark made a small bolt-on acquisition to strengthen its conveyancing capabilities. OneSearch Direct provides property information and conveyancing solutions to solicitors and other customers in England and Wales.

Trepp continued to deliver revenue growth across each of its units in the period, including the core commercial mortgage-backed securities (CMBS) business. Customer renewal rates remain high and there was particularly strong growth from its Commercial Real Estate and Banking businesses.

Both Trepp and Landmark are investing to upgrade and launch new products and further strengthen their market position. Trepp launched TreppCLO, its collateralised loan obligations (CLO) product, on a new integrated platform and continues to enhance the product. Landmark is investing in technology to make the processes involved in property transactions more efficient. Since the onset of Covid-19, Landmark has amended its product roadmap to accelerate initiatives that are most likely to benefit from the digitisation of the sector. The reduction in margins and the underlying decrease in cash operating income and adjusted operating profit during the period was due to this increased investment as well as the adverse effect of lower UK revenues.

Outlook: in April 2020, Landmark's revenues decreased by an underlying 44% compared to April 2019. There has been a marked reduction in both commercial and residential property transactions in the UK, with current volumes estimated to be less than half of the 2019 levels. Approximately 85% of Landmark's revenues are driven by transaction volumes and consequently particularly weak trading is expected during the second half of FY 2020. The variable portion of the cost base has increased over recent years reflecting a deliberate strategy to make Landmark more resistant to property cycles. Despite this, the lower revenues are adversely affecting cash operating income and adjusted operating profit margins and Landmark reported an adjusted operating loss in April 2020.

In the US, Trepp is experiencing increased demand for its analytics. This reflects customer desire to understand the risk and cash flow profile associated with the debt instruments they hold. Trepp is well positioned to continue to deliver growing subscription revenues given these dynamics.

EdTech: Hobsons

The EdTech business, Hobsons, is a leading provider of college and career readiness and student success solutions to the North American market and continues to perform strongly. Revenues in the first half grew by an underlying 10% with continued growth from each of the three product lines: Naviance, the K-12 college and career readiness solution; Intersect, the higher education match and fit business, and Starfish, the higher education student retention and success platform.

Good progress was made in the period with modernising the core product platforms and adding client-facing features and functionality. The modernisation is expected to reduce future operating costs and enable faster product development. As expected, the investment adversely affected cash operating income and adjusted operating profit in the period with margins reducing accordingly.

Outlook: Hobsons provides student success solutions that demonstrate a clear return on investment for customers, notably supporting revenue generation for US colleges. Hobsons' strong product offering positions it well for the future. The Covid-19 pandemic is expected, however, to extend the time it takes to secure new customers, whilst existing customers' budgets may also come under pressure.

Events and Exhibitions: dmg events

The Events and Exhibitions business, dmg events, is an organiser of B2B exhibitions and associated conferences with industry-leading events in the energy, construction, interiors, hotel, hospitality and leisure sectors. Following the cancellation of all events scheduled for March 2020, due to the Covid-19 crisis, revenues grew an underlying 1% in the period, compared to 8% for the first five months. Big 5 Dubai and ADIPEC, two of the business's three largest events, were held in November 2019 and collectively delivered stable underlying revenues despite challenging conditions in the Middle East, notably in the construction sector. Revenues grew 6% on an absolute basis including the benefit of timing differences, notably the Middle East Stone event held in November 2019 but not in the prior year.

During the period, £11m of costs were recognised relating to cancelled or postponed events. Of these, £3m related to events scheduled for March and the recognition of a further £8m, in respect of events scheduled for the second half of FY 2020, was accelerated into first half of the year. It is likely that the majority of these costs will be recovered through insurance but accounting standards (IAS 37) require that the benefit should only be recognised when the cash is virtually certain to be received rather than at this early stage. The Group's insurance cover for communicable diseases is limited to US$20m per financial year until September 2022.

The cash operating income and operating margins both decreased to 6% in the period. As well as the impact of events being cancelled and postponed, this reflected investment in driving attendance and in additional content to support future growth, notably for ADIPEC. It was also due to a change in revenue mix. There was a reduction in higher-margin exhibitor revenues offset by an increase in relatively lower-margin delegate revenues, as well as a one-off low margin event organised for a third party.

Outlook: to ensure the safety of customers, employees and visitors, all events scheduled from April to August 2020 have been cancelled or postponed and the Gastech event, scheduled to be held in Singapore in September 2020, has been postponed to September 2021. Similarly, Big 5 Dubai, which was scheduled to be held in November 2020, has been postponed to September 2021. It is in the best interests of all parties that dmg events runs well-attended shows and the business is working closely with its major customers and sponsors regarding the timing of scheduled events. It is increasingly likely that the remaining events still scheduled to be held in September and some additional events scheduled in FY 2021 will be postponed or cancelled.

The non-occurrence of events due to Covid-19 will result in a substantial reduction in Full Year revenues compared to the prior year. Action has been taken to reduce the business's cost base, including payroll and discretionary items. Despite these measures and the benefit of insurance cover, overhead costs will continue to be incurred. The Full Year financial performance will depend on the timing of recognition of the benefit of insurance cover in the accounts.

DMGT believes that the longer-term outlook for Events and Exhibitions is strong, as the importance of face-to-face events increases in a digitising world. In April 2020, dmg events acquired 11 small events from CWC Group, strengthening its position as the leading organiser of gas, LNG and energy events and extending its reach in Africa.

Energy Information: Genscape

DMGT no longer operates an Energy Information division, following the disposal of Genscape for US$364m in November 2019.

Consumer Media: dmg media

Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers.

The Consumer Media portfolio includes two of the UK's most read paid-for newspapers, the UK's highest circulation weekday newspaper and MailOnline, one of the world's leading English language newspaper websites. Consumer Media achieved a good performance in the five months to February 2020, with revenues growing an underlying 1%. The onset of Covid-19 in March impacted performance and revenues for the six months to March 2020 decreased an underlying 2% to £345m. The underlying growth from digital advertising of 15% was more than offset by a 4% decrease in print advertising revenues and a 5% decrease in circulation revenues. Revenues grew 1% in absolute terms, benefiting from the inclusion of four months' trading of the 'i', the UK national newspaper and website, which was acquired at the end of November 2019.

The cash operating income margin improved to 14% and the adjusted operating margin increased to 13% from 11%, including the benefit of the 'i' acquisition. Cash operating income decreased by an underlying 1%, including increased capital expenditure in editorial systems. Despite the underlying reduction in revenues, adjusted operating profit grew an underlying 4%, reflecting a continued focus on managing the cost base.

Total combined advertising revenues across the Consumer Media portfolio grew by an underlying 4% to £177m. The 5% underlying decrease in circulation revenues to £146m was due to a continued decline in volumes, partly offset by cover price increases of 10p to £1.10 for the Daily Mail Saturday edition, in January 2020, and of 20p to £1.20 for the weekend edition of the 'i', in September 2019. The Mail brand remains strong, which is reflected in the large and growing UK retail market shares held by the Daily Mail and The Mail on Sunday of 27.9% and 24.8% respectively6. The 'i' also grew its UK retail market share in the period, to 4.4%7.

Revenues for the combined Mail newspaper, website and TV businesses (Daily Mail, The Mail on Sunday, MailOnline and DailyMailTV) decreased by an underlying 2% to £278m, including £79m from MailOnline. Total advertising across the Mail businesses grew by an underlying 5% to £135m, including 14% growth from MailOnline and a 7% decline in print advertising revenues. The decline in print advertising reflects the continued structural and competitive challenges facing the UK national newspaper advertising market. DailyMailTV continues to raise awareness in the US of MailOnline, though the business's own revenues decreased to £4m in the period.

MailOnline continues to focus on attracting traffic directly to its homepages on desktop and mobile or its apps. Indirect traffic, primarily via social media and search platforms, remains more volatile and increased significantly during the period, driving a 33% increase in total average daily global unique browsers to 16.9m. Total minutes spent on the site, excluding time viewing videos, increased by 14% to a daily average of 146m in the period. The direct audience accounted for 78% of minutes spent, reflecting continued high levels of engagement with the direct audience.

Metro delivered a resilient performance in the period, growing revenues by an underlying 1% to £41m. Revenues from the 'i' were £12m for the four months of ownership, an underlying decrease of 2%, including underlying growth in both print and digital advertising. Following regulatory approval of the acquisition in March 2020, steps are being taken to realise potential synergies from dmg media's existing infrastructure and operations.

Outlook: since March 2020, the impact of Covid-19 has resulted in a pronounced reduction in advertising revenues across both print and digital formats, with the latter partly offset by increased traffic. The UK lockdown has also resulted in fewer hard copy newspapers being bought from shops and newstands, though this has partly been offset by increased deliveries to readers' homes. Encouragingly, print retail circulation volumes of the Mail and 'i' titles have increased successively each week since 5 April 2020.

There has also been an increase in demand for digital versions of the Mail newspapers' content, through 'Mail+'. Mail+'s briefings service, which offers readers additional insight, news and entertainment via video, podcast and articles, was launched in October 2019 and now attracts over 270 thousand uniqe visitors a week. Subscribers to Mail+'s premium offering, including the digital version of the newspaper, have more than doubled to over 80 thousand. Metro is still being published to inform and entertain key workers, but circulation volumes are approximately a quarter of their usual levels. At this stage, it is too early to assess the extent to which readership habits may permanently change once lockdown measures are lifted completely.

In April 20206, Consumer Media revenues decreased by an underlying 33% due to Covid-19. Circulation revenues were down 17% and total advertising down 46%, including print advertising down 69% and digital advertising down 16%. More recently, there has been a slight improvement in trading, with Consumer Media revenues in the four weeks to 24 May 2020 estimated to be down an underlying 30%. This includes circulation down 9% and total advertising down 45%, with print advertising down 70% and digital advertising down 17%. Newspaper production and distribution costs have also reduced, as well as discretionary expenditure. The pronounced decrease in revenues resulted in the Consumer Media business operating at a loss in April, with a negative adjusted operating margin in the mid-single digits. This is currently expected to improve to a small loss in May 2020.

The advertising market is expected to remain difficult and the duration of the impact of lockdown measures on circulation volumes is uncertain. The Board remains confident, however, that high levels of reader engagement will help to support revenue recovery in time.

Corporate costs

Joint Ventures & Associates

Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers.

The Group's share of adjusted operating losses from joint ventures and associates was £7m, a £25m change compared to net profits of £18m in the prior year. There were no profits from Euromoney in the period, compared to £23m in the prior year. All of the Euromoney shares held by DMGT were distributed to DMGT's shareholders in April 2019.

DMGT increased its stake in Yopa, the early-stage loss-making UK hybrid estate agent, from c.26% to c.45% in August 2019 and the the business is the Group's most significant associate holding.

As well as joint ventures and associates, DMGT invests in and develops early-stage businesses in which the Group holds smaller stakes. As the percentage holdings are too small or DMGT's level of influence insufficient for the companies to be associates, the Group does not recognise a share of profits or losses from these investments. The most notable is Cazoo, which aims to transform the way people buy used cars in the UK and launched its services to customers in December 2019. DMGT increased its stake from c.19% to c.23% in March 2020.

Net finance costs

Net interest payable and similar charges, including DMGT's share of associates' interest costs, were £2m. The 70% decrease on the prior year was primarily due to the maturing of £219m of bond debt in December 2018. The decrease in finance costs was 81% on an underlying basis, after adjusting for £1m of finance costs recognised following the adoption of IFRS 16.

The pension finance credit, which is excluded from adjusted results, was £2m for the period, reflecting the pension surplus on an accounting basis. This compared to a £4m credit for the same period last year and £7m for the prior Full Year.

Other income statement items

· Exceptional items and amortisation

Exceptional operating costs remained at low levels in the first half and, including discontinued operations and associates, totalled an £8m credit in the period (H1 2019 £1m credit). There were impairment charges of £12m in the period (H1 2019 £49m), including £5m in respect of Events & Exhibitions and £4m in respect of associates.

The charge for amortisation of intangible assets arising on business combinations was £6m (H1 2019 £14m including the share from associates). The Group recorded other net gains on disposal of businesses and investments, including discontinued operations, of £179m, primarily in respect of the disposal of Genscape, the Energy Information business (H1 2019 gain £16m).

In May 2020, the decision was made to amend the existing RMS 2015 Equity Incentive Plan. The amendments are to ensure that the scheme works appropriately for the broader employee base in light of the current business plan. An exceptional non-cash charge of approximately £20m is expected to be reported at the FY 2020 results, reflecting the changes that will be made to the plan in the second half.

· Taxation

The adjusted tax charge of £22m (H1 2019 £19m) is stated after adjusting for the effect of exceptional items. The adjusted tax rate for the half year was 39%, an increase on 19% in H1 2019. The increase is due to reduced profit expectations for the second half of the year and the increased significance of tax-adjusting items relative to the Group's adjusted profit before tax. Most notably, the share of unrelieved losses from early-stage associates has increased as a proportion of the Group's adjusted profit before tax.

The statutory tax charge for the period was £6m and there was also a statutory tax credit of £17m on discontinued operations. There were £15m of exceptional tax credits.

Pensions

The net surplus on the Group's defined benefit pension schemes increased from pro forma £332m at the start of the year to pro forma £469m at the half year, calculated in accordance with IAS 19 (Revised). The pro forma figures include £117m that was made available to the pension schemes in April 2019 but which currently remains as cash on DMGT's balance sheet, as well as the statutory net surplus, which was £352m at the half year. During the period, the decrease in the value of the defined benefit obligation exceeded the decrease in the value of the assets. Funding payments into the main schemes during the period were £16m.

An actuarial valuation of the pension schemes as at 31 March 2019 is in the process of being completed and is expected to conclude that the schemes remain in deficit on an actuarial basis. Potential revisions to the existing funding plan are currently being discussed with the Trustees. The defined benefit schemes are closed to new entrants and the next actuarial valuation is scheduled for 31 March 2022.

Net cash and cash flow

Pro forma net cash5 at the end of the period was £163m, a decrease of £84m since the start of the financial year, reflecting the usual seasonal cash outflows and £89m spent on acquisitions. Pro forma net cash is stated after adjusting to:

i) exclude £117m of cash that was made available to the Group's pension schemes in April 2019 but which currently remains as cash on DMGT's balance sheet; and

ii) exclude £74m of lease liabilities that are included in statutory net cash following the adoption of IFRS 16, the lease accounting standard.

The Group's cash operating income of £75m is stated after £10m of capital expenditure, a significant reduction on £17m in H1 2019, reflecting a larger proportion of technology costs being expensed directly. Other operating cash net outflows totalled £30m including the usual seasonal outflows, such as incentive plan payments. Group operating cash flow was £45m in the period, a 69% conversion rate of operating profits to operating cash flow, an improvement on 40% in H1 2019.

Pro forma net expenditure on acquisitions and investments, including proceeds from disposals, was £67m. This included £50m to acquire the 'i' newspaper and website and £37m invested in Cazoo, the early-stage business accounted for as an investment. There were proceeds of £20m from the disposal of BuildFax. Proceeds from the disposal of the Energy Information business, Genscape, were included in the pro forma net cash at the start of the year and so are excluded from the pro forma cash flow.

Payments in the period included dividends of £38m, pension funding payments of £16m and taxation of £10m. Net interest receipts were £7m in the period.

The Group's cash, cash equivalents and short-term deposits, net of overdrafts, totalled £478m at the period end. On a pro forma basis, excluding £117m made available to the pension schemes, the Group's gross cash, cash equivalents and short-term deposits totalled £361m. At the period end, bond debt was £203m, comprised of £203m of the 6.375% bonds, due 2027 and less than £1m of the 10.0% bonds, due 2021. There was also £4m of net cash in respect of collateral, loan notes and derivatives. The Group's committed bank facilities were £380m, which mature in March 2023, were completely unutilised.

In May 2020, Fitch reaffirmed DMGT's BBB- investment grade rating. The Group's preferred upper limit for gearing remains a net debt to adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) ratio of 2.0, below the requirements of the Group's bank covenants.

The Directors have a reasonable expectation that the Group will continue to operate and meet its liabilities as they fall due for at least one year. Accordingly, they are satisfied that it is appropriate to continue to adopt the going concern basis in preparing DMGT's accounts.

Financing and shares

During the first half of the year, the Group acquired 0.2m 'A' Ordinary Shares for £2m in order to meet obligations to provide shares under its incentive plans. It utilised 0.3m shares, valued at £2m, and a further 1.0m shares from the Employee Benefit Trust, valued at £7m, to provide shares under various incentive plans. As at 31 March 2020, DMGT had 229.1m shares in issue, including 19.9 million Ordinary Shares, and a further 5.7m 'A' Ordinary Shares held in Treasury and the Employee Benefit Trust8.

Dividend

The dividend policy is to grow the dividend in real terms and, in the medium term, to distribute about one-third of the Group's adjusted earnings. The Board has declared an interim dividend of 7.5 pence per Ordinary and 'A' Ordinary Non-Voting share (H1 2019 7.3 pence) which will be paid on 26 June 2020 to shareholders on the register at the close of business on 5 June 2020.

There is currently a high level of uncertainty in respect of the general business environment. The Board decided to follow its dividend policy in respect of the interim dividend, reflecting the first half trading performance. Future dividends will reflect the prevailing economic outlook and the trading of our businesses.

Adjusted results: statutory profit before tax (PBT) reconciliation to adjusted PBT

The Board and management team use adjusted results, rather than statutory results, as the primary basis for providing insight into the financial performance of the Group and the way it is managed. Similarly, adjusted results are used in setting management remuneration. Adjusted results exclude certain items which, if included, could distort the understanding of the comparative performance of the business during the period.

The tables on pages 22 and 23 show the adjustments between statutory profit before tax and adjusted profit before tax, by business, for both the first half of FY 2020 (H1 2020) and H1 2019.

The explanation for each type of adjustment is as follows:

Reconciliation: Statutory profit to adjusted profit - Half Year 2020

Reconciliation: Statutory profit to adjusted profit - Half Year 2019

Reconciliation: Adjusted results including and excluding discontinued operations

Cash operating income2

Half Year 2020

Half Year 2019

Underlying1 analysis - Revenues

Underlying1 analysis - Adjusted3 operating profit and profit before tax

Underlying1 analysis - Cash operating income²

Principal risks and uncertainties

The principal risks and uncertainties that affect the Group on an ongoing basis are described in our most recent Annual Report (FY 2019). These are still considered to be relevant risks and uncertainties for the Group at this time and are summarised below. The Group faces business continuity risk associated with an event such as a pandemic, epidemic, natural or manmade disaster. Despite the seamless transition by DMGT's businesses to remote working, following the onset of Covid-19, a specific additional principal risk has been included in operational risks below. This reflects the potential operational and financial consequences of such a business continuity event, notably for the Events and Exhibitions business.

Strategic Risks

· Market disruption creates opportunities as well as risks. Disruption enables us to move into new markets and geographies to grow the business. Failure to anticipate and respond to market disruption may affect demand for our products and services and our ability to drive long-term growth.

· Internal investments in new products and services, and developments of existing products and services, may fail to achieve customer acceptance and yield expected benefits.

· Portfolio changes not delivering expected benefits, acquisitions and investments not delivering as expected, or not divesting from non-core businesses at the right time.

· Economic and geopolitical uncertainty. The significance of this risk has increased during the period because of the current Covid-19 pandemic and the containment measures put in place to control it. There is an increasing likelihood of an imminent and severe global recession.

· Failure to secure and retain the right people for senior and business-critical roles.

Operational Risks

· Business continuity event (e.g. pandemic, epidemic, natural or manmade disaster). As well as an immediate impact on operations, an event may have an extended effect, as is expected to be the case with the Covid-19 pandemic. The safety of employees on their commute, as well as in the workplace, is a priority and containment measures to control the pandemic are likely to continue to affect working practices for an extended period of time.

· Information security breach or cyberattack.

· Reliance on key third parties; a failure of one of our critical third parties may cause disruption to business operations.

· Compliance with laws and regulations across multiple jurisdictions and sectors.

· The funding of the pension scheme deficit could be greater than expected.

Statement of Directors' responsibilities

The Directors are responsible for preparing the Half Yearly Financial Report, in accordance with applicable law and regulations.

The Directors confirm that to the best of their knowledge:

a) this Condensed set of Financial Statements which should be read in conjunction with the annual financial statements for the year ended 30 September 2019 and has been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the European Union; and

b) the Interim Management Report includes a fair review of the information required by the Financial Conduct Authority's Disclosure and Transparency Rules 4.2.7R and 4.2.8R.

By order of the Board of Directors

The Viscount Rothermere

Chairman

27 May 2020

Notes

1 Underlying growth rates are on a like-for-like basis, see pages 26 to 28. Underlying revenues, cash operating income2 and operating profits are 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. Cash operating income, operating profits and finance costs are also adjusted in respect of IFRS 16, so the calculation methodology is consistent across periods. For events, the comparisons are between events scheduled to be held in the six-month period and the same events held the previous time. Consequently, underlying growth rates include all costs for events that were scheduled in March 2020 and were cancelled or postponed, but exclude all costs associated with events originally scheduled for later in the year. For Consumer Media, underlying revenues exclude low margin newsprint resale activities. The underlying change in the share of operating profits from joint ventures and associates excludes Euromoney Institutional Investor PLC.

2 Cash operating income (Cash OI) is calculated by adding back depreciation and amortisation expenses, which are non-cash items, to adjusted operating profit and then deducting capital expenditure. The depreciation charge on the additional right-of-use assets, which has resulted since 1 October 2019 from the adoption of IFRS 16, the lease accounting standard, is not added back when calculating Cash OI.

3 Unless otherwise stated, all profit and profit margin figures in this Interim Management Report refer to adjusted results and not statutory results. The Board and management team use adjusted results, rather than statutory results, to give greater insight to the financial performance of the Group and the way that it is managed. Similarly, adjusted results are used in setting management remuneration. 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. For reconciliations of statutory profit before tax to adjusted profit before tax and supporting explanations, see pages 21 to 23.

4 The statutory results are IFRS figures before any adjustments. They exclude discontinued operations, namely the Energy Information business, Genscape, other than earnings per share.

5 The actual net cash position as at 31 March 2020 was £206m including £74m of additional lease liabilities in respect of the adoption of IFRS 16, the lease accounting standard, and the net cash:EBITDA ratio was 1.4. Excluding the additional lease liabilities, net cash could have been £280m. However, £117m has been made available to the Group's pension schemes but continues to be held as cash by DMGT. The pro forma net cash of £163m as at 31 March 2020 is stated after adjusting net cash to exclude the £117m. The pro forma net cash:EBITDA ratio was 1.1.

The pro forma net cash of £163m includes gross cash of £361m, £203m bond debt and £4m net cash in respect of collateral, loan notes and derivatives. Gross cash includes cash, cash equivalents and short-term deposits, net of overdrafts, and excludes the £117m made available to the pension schemes.

6 For Consumer Media, April 2020 refers to the four week period to 26 April 2020. For the B2B businesses, it refers to the month to 30 April 2020.

7 During the 25 weeks to 22 March 2020 (H1 2020), the Daily Mail's audited market share of UK retail sales averaged 27.9% (an increase from 27.2% in H1 2019), The Mail on Sunday averaged 24.8% (an increase from 23.9% in H1 2019) and the 'i' averaged 4.4% (an increase from 4.3% in H1 2019). Circulation market share figures are calculated using ABC's National Newspapers Reports, excluding digital subscribers. ABC's figures no longer include The Daily Telegraph or The Sunday Telegraph and the H1 2019 comparatives have been adjusted accordingly.

8 As at the end of 31 March 2020, there were 4,466,393 'A' Ordinary Shares held in Treasury and 1,190,372 'A' Ordinary Shares held by the DMGT Employee Benefit Trust.

~ Percentages are calculated on actual numbers to one decimal place.

The average £: US$ exchange rate for the first half of the year was £1:$1.28 (against £1:$1.29 last year). The rate at the Half Year end was $1.24 (2019: $1.30), compared to $1.23 at the September 2019 year end.

All references to profit or margin in this interim management report are to adjusted profit or margin, except where reference is made to statutory profit.

A presentation of the Half Year Results will be given at 9.30am on 28 May 2020 and will be followed by a question and answer session for City analysts and investors. The presentation will be available on our website at www.dmgt.com/webcasthy20 and the dial-in number for questions is +44 (0)330 336 9411, confirmation code 9513118.

The Group's next scheduled announcement of financial information will be its nine month trading update on 23 July 2020.

Market Abuse Regulation

The information communicated in this announcement includes inside information.

This Interim Management Report ('IMR') 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 IMR save as would arise under English law. Statements contained in this IMR 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 IMR. 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 IMR. 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.

Independent review report to Daily Mail and General Trust plc

Report on the Condensed Consolidated Financial Statements

· Our conclusion

We have reviewed Daily Mail and General Trust plc's Condensed Consolidated Financial Statements (the "interim financial statements") in the Half Yearly Financial Report of Daily Mail and General Trust plc for the 6 month period ended 31 March 2020. Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

· What we have reviewed

The interim financial statements comprise:

· the Condensed Consolidated Statement of Financial Position as at 31 March 2020;

· the Condensed Consolidated Income Statement and Condensed Consolidated Statement of Comprehensive Income for the period then ended;

· the Condensed Consolidated Cash Flow Statement for the period then ended;

· the Condensed Consolidated Statement of Changes in Equity for the period then ended; and

· the explanatory notes to the interim financial statements.

The interim financial statements included in the Half Yearly Financial Report have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

As disclosed in Note 1 to the interim financial statements, the financial reporting framework that has been applied in the preparation of the full annual financial statements of the Group is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.

Responsibilities for the interim financial statements and the review

· Our responsibilities and those of the Directors

The Half Yearly Financial Report, including the interim financial statements, is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Half Yearly Financial Report in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

Our responsibility is to express a conclusion on the interim financial statements in the Half Yearly Financial Report based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

· What a review of interim financial statements involves

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We have read the other information contained in the Half Yearly Financial Report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.

PricewaterhouseCoopers LLP

Chartered Accountants

London

27 May 2020

Shareholder Information

Financial Calendar (provisional)

2020

Contacts

For further investor information and contacts, please visit the Company's website at

www.dmgt.com.

Condensed Consolidated Financial Statements

Condensed Consolidated Income Statement

For the 6 months ended 31 March 2020