Britain's Daily Mail and General Trust, whose media stable includes national newspapers the Daily Mail, Mail on Sunday and London's Evening Standard, yesterday predicted an eight per cent fall in H2 display advertisement revenues.
This decline would negate the short term gain in circulation following the American tragedies, said DMGT. Prior to the September 11 attacks, ad revenues had shown signs of recovery from their Q2 low.
Euromoney, the group’s financial publishing and conference unit, would also be hard hit by the terrorist attacks, warned a DMGT statement. However: “Other parts of the group, notably our regional newspapers, have seen no immediate impact on their revenues, but it is of course too soon and uncertain to ascertain whether any longer term effects will be felt.”
Retail advertising in the Daily Mail had held up strongly, although the financial and IT sectors remained weak. Classified advertising in the two Mail titles during the second half was up by 5% year-on-year, but the picture was less rosy at the Evening Standard where, particularly vulnerable to the decline in recruitment advertising, classified revenues had slumped by 11%.
Reflecting a market climate in which moderately bad news is good news, DMGT shares rose following the announcement by one per cent to £5.05.
News source: Financial Times