Posting a decline in profits and revenues, British media group Daily Mail & General Trust took a gloomy view of the ad market’s prospects for the rest of 2002.
For the six months ending in March this year, DMGT saw pre-tax profits slide to £65.2 million ($95.5m; €102m), down from £71.6m twelve months before, while revenues slid 1% to £950m on the back of tumbling adspend.
“Generally the advertising market remains volatile and consistent improvement is still awaited,” the group declared. “We still see no reason for any substantial improvement in advertising revenues over the rest of 2002 and have planned on that basis.”
Suffering most was its flagship Associated Newspapers division, where ad revenues sunk 15%. National title the Daily Mail saw turnover tumble 13% following a fall in finance and technology advertising, while London’s Evening Standard was hit by a 44% slump in recruitment ads. However, Associated’s overall revenues fell a more modest 2%, as increased cover prices helped mitigate the adspend drought.
Fortunately, the situation is not nearly so bleak in the regional press. DMGT’s Northcliffe Newspapers arm, owner of 74 local titles, saw a 1.6% increase in ad revenues and flat turnover of £233m.
Data sourced from: MediaGuardian.co.uk; additional content by WARC staff