The Week: City News - DMGT profits increase

Daily Mail & General Trust has reported a 24 per cent increase in profits to £135 million for the six months to April 2007.

The group said its business- to-business operations had performed particularly strongly. For the first time, less than half of its operating profit came from print newspaper operations - just 48 per cent, compared with 56 per cent in the same period last year. DMGT added that its newspaper divisions were seeing modest growth in advertising revenues.

The company also warned that its freesheet war with News International is "unsustainable". London Lite and thelondonpaper now distribute more than 900,000 copies per day, and the circulation of the DMGT-owned Evening Standard has fallen by 16 per cent year on year since April 2006.

Peter Williams, the DMGT finance director, added that the Evening Standard's circulation had stabilised over the past three months.