Daily Mail publisher culls 500 jobs but revenues nudge up

Daily Mail publisher Associated Newspapers has reported a 1% nudge up in revenues in the 11 months to August, helped by cutting 500 jobs and upping the cover price of the Daily Mail by 5p to 55p in 2011.

Daily Mail: publisher Associated Newspapers reports profits up 1%
Daily Mail: publisher Associated Newspapers reports profits up 1%

The newspaper publisher has also extolled the benefits of the Olympics, saying that underlying advertising revenues were up 7% in July and August year on year, reflecting the benefit of the 2012 Games.

The publisher's free title Metro previously disclosed that it enjoyed a strong Olympics, helped by its Adidas cover-wrap deal.

Daily Mail & General Trust (DMGT) today (25 September) updated the market on its performance in the 11 months period to the end of August.

Associated Newspapers – which publishes fthe Metro, the Daily Mail and The Mail on Sunday – reported revenues up 1%, on an underlying basis. Headcount was reduced to 3,844, which is 498 (11%) lower than at the beginning of the year.

Circulation revenues were up 4%, helped by the cover price increase from 50p to 55p of the Daily Mail.

Advertising revenues, however, were down 1% in the period. These revenues included printed newspapers, which were down 7%, while advertising revenue at Mail Online, its market-leading website, was up 72% in the period.

Across DMGT's regional division, Northcliffe, overall headcount was down by 12% (298) compared with the start of the year.

Circulation revenues at Northclifffe – whose titles include the Hull Daily Mail and the Croydon Advertiser – were up 1% on an underlying basis, benefiting from cover-price increases.

Overall, the DMGT business – which includes its business-to-business unit – reported group revenues up 3% in the period.

Martin Morgan, chief executive, said: "DMGT has delivered a solid revenue performance over the year to date, driven by continued strength in our B2B operations. The consumer business delivered a resilient performance and also benefited from incremental revenues from the Olympics."