Associated ad revenue growth slows

Underlying advertising revenue growth at Daily Mail and Metro publisher Associated Newspapers has slowed to 2% year on year in the quarter to date.

Associated Newspapers: ad revenue growth slows in first quarter of 2011
Associated Newspapers: ad revenue growth slows in first quarter of 2011

The underlying figure excludes a number of businesses disposed of or closed, such as London Lite.

A trading update from Associated's parent company today (28 March) stated advertising revenue growth had weakened over the months since October and November, which had shown a positive trend.

The fourth calendar quarter of 2010 (DMGT's first financial quarter) had shown 6% underlying advertising revenue growth. The company blamed tougher comparatives for the slowdown.

For the five-month period to the end of February, Associated's total revenues were up 2%, with underlying advertising revenues up 5% and underlying circulation revenues down 2%.

The picture continued to worsen at DMGT's regional newspaper division, Northcliffe Media.

Advertising revenues were down 12% in the quarter to March so far, a deterioration on the 6% decline in the previous quarter.

For the five-month period to the end of February, Northcliffe's total revenues were down 8%, with circulation revenues down 3% and advertising revenues down 8%.

Headcount at A&N Media, the umbrella company for the two operations, was down by 7% – 520 people including 317 at Northcliffe – over the period.

At a group level, DMGT, which also owns a number of business-to-business operations, reported 2% revenue growth for the five-month period to the end of February.

In November DMGT reported pre-tax profits of £146.3m for the year to 3 October, buoyed by cost cutting and the record performance of its Daily Mail and Metro titles.

Subscribe to Campaign from just £57 per quarter

Includes weekly and quarterly print issues, plus unrestricted online access.

SUBSCRIBE

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now

MOST READ

BBH deputy ECD Caroline Pay exits
Share

1 BBH deputy ECD Caroline Pay exits

Bartle Bogle Hegarty has parted company with its deputy executive creative director Caroline Pay and has promoted Ian Heartfield, creative managing partner, and Anthony Austin, chief executive of Black Sheep Studios, to take over as joint deputy ECDs.

Just published