Proactiveinvestors United Kingdom Daily Mail and General Trust Proactiveinvestors United Kingdom Daily Mail and General Trust RSS feed en Sun, 26 May 2019 09:56:53 +0100 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[News - Daily Mail owner to become victim of Brexit alongside ITV, says Liberum ]]> Daily Mail and General Trust PLC (LON:DMGT) is likely to join ITV PLC (LON:ITV) in becoming an “un-beneficiary of Brexit uncertainty”, Liberum said.

Last week, Liberum downgraded its estimates for ITV on concerns that uncertainty on Brexit would hit advertising numbers for the rest of the year.

For the same reason, the broker has today cut its recommendation on DMGT, which owns the Daily Mail and Metro newspapers, to ‘sell’ from ‘hold’ and lowered its target price to 620p from 625p.

READ: Daily Mail & General to distribute stake in Euromoney and £200mln in cash to eligible A share holders

“Our concern is an obvious one: namely that advertising revenues in DMG Media are hit both by advertisers in general deciding to hold off on committing advertising revenues and the ongoing secular weaknesses in the retail sector, which is one of the biggest advertising categories for DMG Media,” Liberum said.

“DMG Media is one third of group profits and print advertising revenues are circa 29% of DMG Media revenues with Mail Online (which is geographically more diversified and which is more protected structurally) making up another 21% of DMG Media revenues.”

Brexit uncertainty to hit property information revenues 

Liberum said another factor to consider is the impact the uncertainty will likely have on UK property transaction volumes, which is the main driver of DMGT’s European property information revenues.

The European property information business accounts for about 10% of group revenue and 15% of total profits, Liberum estimates.

“Thus, we would argue that circa 23% of group revenues (print advertising revenues + European property information revenues) are directly at risk from the Brexit uncertainty, with at least part of another 9% of revenues (Mail Online) possibly at risk,” Liberum said.

Euromoney stake sale to boost earnings

Liberum also revised its earnings estimates to reflect DMGT’s decision to sell its 49% stake in financial publisher, Euromoney.

The deal saw DMGT return Euromoney shares and cash to shareholders.

“The Euromoney transaction involved a reduction in the share count and, unlike our previous forecasts, we have assumed that DMGT puts in additional cost savings to offset revenue declines so there is not the sharp drop off in DMG Media margins we had assumed previously,” Liberum said.

“The net result of this is that, perversely, adjusted EBITDA forecasts actually rise despite lower revenues.”

Liberum cut its 2019 forecast for revenue by 3.8% to £1.36bn and raised its expectation for earnings (EBITDA) by 7.8% to £189.6mln.

In late morning trading, shares in DMGT fell 0.3% to 671.1p.

Tue, 09 Apr 2019 11:34:00 +0100
<![CDATA[RNS press release - Result of Class Meeting ]]> Tue, 26 Mar 2019 16:03:01 +0000 <![CDATA[News - Daily Mail & General to distribute stake in Euromoney and £200mln in cash to eligible A share holders ]]> Daily Mail & General Trust PLC (LON:DMGT) plans to return all its remaining shares in financial magazine publisher Euromoney Institutional Investor PLC (LON:ERM) and £200mln in cash to eligible holders of its listed ‘A’ non-voting shares, a move which - together with a share reduction - will increase the Rothmere family’s holding in the newspaper publishing group.

DMGT, which was a founding investor in Euromoney and is its largest shareholder, confirmed last week that it was considering its options with regards to its around 49% stake in the firm

READ: Daily Mail & General Trust says reviewing options in respect of its remaining holding in Euromoney

In a statement on Monday, DMGT said each of its A shareholders will receive 0.19933 Euromoney share, plus 68.13p in cash. The company said the number of its A shares will also be reduced as part of the capital distributions, on the basis of a reduction of 0.46409 for each existing A share.

The Rothermere family shareholders will not get any Euromoney shares but will receive £17mln in aggregate in cash, which is 65% less than the amount they would have received had they participated fully in the cash distribution. Because of their only partial participation, the Rothermere family holdings in DMGT will increase to 36% from 24%.

DMGT chief executive, Paul Zwillenberg commented:  "In total, the distributions will result in almost £900mln of assets being returned to shareholders, who will benefit from direct ownership of Euromoney while retaining exposure to a simplified DMGT Group.”

In a separate statement, Euromoney chief executive officer, Andrew Rashbass said: "The proposed distribution would result in a more diversified shareholder base for Euromoney and we would expect it to result in increased liquidity in our shares.

“This should benefit both existing shareholders and those joining the register as a result of the proposed distribution. It will also underline Euromoney's status as a fully independent company.”

In mid-morning trading, Euromoney shares were 4.5% lower at 1,242p, while DMGT A shares were 5% higher at 679p.

Mon, 04 Mar 2019 10:29:00 +0000
<![CDATA[RNS press release - Proposed distributions: Euromoney shares and £200m ]]> Mon, 04 Mar 2019 07:00:03 +0000 <![CDATA[News - Daily Mail & General Trust says reviewing options in respect of its remaining holding in Euromoney ]]> Daily Mail & General Trust PLC (LON:DMGT) has confirmed it is reviewing its options in respect of its remaining holding in financial magazine publisher Euromoney PLC (LON:ERM), a move consistent with its stated strategy of increasing portfolio focus.

Over the weekend, The Sunday Times reported that the Daily Mail owner was considering offloading its 49% stake in Euromoney in a move that would help to fund a ££750mln special cash return to shareholders.

READ: Daily Mail and Metro owner maintains full year guidance after online advertising growth boosts first-quarter revenue

The Sunday Times cited a source close to the situation as saying that the holding had become "non-core" and was under review.

In a brief statement responding to the speculation, DMGT said it has not received any proposal nor is it in discussions with any party to acquire its holding in Euromoney.

The group said it will make a further announcement if it becomes relevant and appropriate.

DMGT cut its stake in Euromoney to 49% from 67% in December 2017 after selling around 32.3mln Euromoney shares at 975p each raising gross proceeds of around £315mln.

In morning trading on Monday, Euromoney shares were trading at 1,292p each, down 0.5% on Friday’s close. DMGT hares were 1.5% higher at 626p.

Mon, 25 Feb 2019 11:10:00 +0000
<![CDATA[RNS press release - Media speculation ]]> Mon, 25 Feb 2019 07:00:06 +0000 <![CDATA[News - Daily Mail and Metro owner maintains full year guidance after online advertising growth boosts first-quarter revenue ]]> Daily Mail General Trust PLC (LON:DMGT) left its full-year guidance unchanged after underlying revenue in the first quarter rose 2%, led by demand for online advertising.

The owner of the Daily Mail and Metro newspapers said revenue in its consumer media division increased 1% in the quarter with advertising revenue up 4% but circulation revenue from its newspaper titles down 3%.

Digital advertising growth of 10% offset a 1% decline in print advertising as more consumers opt to get their news fix online.

READ: Daily Mail and Metro owner's shares plunge as it warns on challenging newspaper market

The group’s business-to-business (B2B) operations saw revenue gain 3%, driven by a strong performance in education technology unit Hobsons.

For the year, the company continues to expect the B2B division to deliver “low-single-digit” underlying revenue growth with an adjusted operating profit margin in the “mid-teens”.  

The consumer media unit is forecast to post a “mid-single digit” underlying drop in revenue with the adjusted operating profit margin in the “high-single digits”.

LIberum upgraded its recommendation on the stock to 'hold' fom sell but lowered its target price to 625p from 685p to reflect its "double-digit" adjusted earnings per share downgrade. 

The broker said while it has cut its estimates, this is "likely to understate the level of future earnings given the likelihood of acquisitions, facilitated by DMGT’s circa £200mln net cash position".

"On the Q1 trading update, we think focus will be on the surprisingly robust print advertising performance (only down 1%) in fiscal Q1 and this helped deliver a solid +2% underlying revenue growth performance for the group."

Shares rose 1.2% to 585p in morning trading.

Thu, 24 Jan 2019 08:23:00 +0000
<![CDATA[RNS press release - First Quarter Trading Update ]]> Thu, 24 Jan 2019 07:00:04 +0000 <![CDATA[News - Daily Mail and Metro owner's shares plunge as it warns on challenging newspaper market ]]> Daily Mail & General Trust PLC (LON:DMGT), swung to a 2018 profit but warned that it expects newspaper circulation volumes to continue to decline next year as more people get their news online.

The owner of the Daily Mail and Metro newspapers posted a pre-tax profit of £692mln for the year to September 30, compared to a loss of £112mln last year, after pocketing £642mln from the sale of its 29.9% stake in ZPG in May. ZPG, the parent company of Zoopla, PrimeLocation and uSwitch, was sold to California-based tech investor Silver Lake.

Daily Mail also sold real estate data firm EDR to Silver Lake and Battery Ventures for US$205mln in March and its loss-making viral video-sharing website Elite Daily to Bustle Digital Group in April.

The disposals improved its balance sheet with the company moving into net cash of £233mln at the end of September from net debt of £464mln at the start of the year.

On the back of its healthier cash position, the group raised its dividend to 23.3p from 22.7p last year.

Adjusted profit and revenue fall 

However, adjusted pre-tax profit fell to £182mln from £226mln last year, reflecting the impact of the reduced portfolio of businesses, a weaker US dollar and difficult conditions in the newspaper market.

Revenue dropped to £1.4bn from £1.7bn last year, led by declines in its property information unit and consumer media businesses of 17% and 4% respectively on a reported basis. On an underlying basis, revenues were flat. 

Last year the company placed its struggling US property information business, Xceligent into liquidation, following a strategic review.

READ: Daily Mail and General places struggling, US property information business into Chapter 7 liquidation

In the consumer media unit, underlying growth from MailOnline of 5% was more than offset by a 5% decrease in circulation revenues and a 5% drop in print advertising revenues.

Advertising market conditions expected to remain volatile 

For the 2019 financial year, the company expects underlying revenues in the consumer media division to fall by “mid-single” digits as it believes advertising market conditions are likely to remain volatile and sees circulation volumes falling. That will offset an increase in the cover price of the Daily Mail, the firm said.

The business-to-business division will be affected by the decision to streamline the portfolio with underlying revenue growth expected to be in the “low-single” digits.

The insurance risk, property information, EdTech, energy information and events businesses are all expected to deliver underlying revenue growth.

 “As we move into FY 2019, our vision for DMGT's future remains unchanged; we seek to deliver profitable growth across a diversified portfolio, driven by our long-term approach to investment and increased focus on innovative technologies,” said chief executive Paul Zwillenber.

“The board remains confident that the group's strategy, supported by our strong balance sheet, will over the medium term, deliver consistent earnings growth to underpin DMGT's long-standing commitment to sustainable annual real dividend growth."

Shares plunged 10.5% to 618p in morning trading.

Liberum maintains 'sell' rating 

Liberum maintained a 'sell' rating and target price of 685p, saying it thinks the shares are likely to react badly to the 2019 guidance.

"We expect consensus adjusted operating profit for FY19E to fall from £153mln to £135mln-140mln (Liberum estimate £127mln) although the earnings per share impact may be less because guidance is for £15mln interest costs (Liberum estimate £30mln)," it added.

"However, the focus will be on the weak operational guidance."

Thu, 29 Nov 2018 09:20:00 +0000
<![CDATA[RNS press release - Full Year Results ]]> Thu, 29 Nov 2018 07:00:10 +0000 <![CDATA[News - Daily Mail downgraded on slowdown fears ]]> City broker Liberum Capital has downgraded its view of Daily Mail and General Trust PLC (LON:DMGT), moving to ‘sell’ from ‘hold’.

Explaining the downgrade, analyst Ian Whittaker said: “It is a tricky call as management are taking the right steps and the company's net cash position gives it firepower to reshape its business.

Decline more structurally driven?

“However, numbers for 2019 are under pressure from rising print prices and, less so, slowness in events.”

“We also have concerns MailOnline’s decline in top-line growth is maybe more structurally, than cyclically, driven.”

With a price target of 685p, the stockbroker sees 5% downside to the current price of 725.5p.

Whittaker added: “MailOnline’s slowing growth has been blamed on cyclical factors but we think it is more structurally driven namely the shift in Online advertising to video, where it is less prominent.”

Thu, 27 Sep 2018 11:28:00 +0100
<![CDATA[RNS press release - Directorate Change ]]> Wed, 26 Sep 2018 17:00:56 +0100 <![CDATA[RNS press release - Nine Month Trading Update ]]> Thu, 26 Jul 2018 07:00:02 +0100 <![CDATA[RNS press release - Half Year 2018 Results ]]> Thu, 24 May 2018 07:00:09 +0100 <![CDATA[RNS press release - Silver Lake's recommended cash offer for ZPG Plc ]]> Fri, 11 May 2018 07:10:13 +0100 <![CDATA[RNS press release - Appointment of corporate broker ]]> Wed, 09 May 2018 07:00:09 +0100 <![CDATA[RNS press release - Agreement to dispose of EDR ]]> Tue, 13 Mar 2018 07:00:07 +0000 <![CDATA[RNS press release - Appointment of RMS CEO ]]> Thu, 01 Mar 2018 17:31:02 +0000 <![CDATA[RNS press release - Investor Briefing ]]> Thu, 01 Feb 2018 07:00:07 +0000 <![CDATA[RNS press release - First Quarter Trading Update FY 2018 ]]> Thu, 25 Jan 2018 07:00:05 +0000 <![CDATA[News - Exane BNP Paribas less bearish on DMGT, says most risks are now priced in ]]> Analysts at Exane BNP Paribas have upgraded Daily Mail and General Trust PLC (LON:DMGT) from ‘underperform’ to ‘neutral’.

The Daily Mail owner has issued a series of profits warnings over the past year or so and has seen its shares fall by almost 20% as a result.

READ: Daily Mail and General places struggling, US property information business into Chapter 7 liquidation

Exane analyst William Packer said that makes the stock look undervalued compared to its peers, given that it is currently trading at about a 30% discount to some of them.

After having to slash forecasts in 2017, Packer reckons the company’s guidance for 2018 is “appropriately cautious”.

“After a disappointing FY17, the B2B portfolio outlook is in better shape for FY18 – e.g. solar headwinds receding, Xelligent closure, oil and gas events improving.”

On top of that, the analyst also notes that DMGT has been upfront with its issues which means there shouldn’t be too many unwanted surprises for investors this time around.

“We see a number of factors limiting downside in other divisions: I) the company now guides for limited RMS(One) monetisation in 2018; II) the company is conservatively guiding for a c5% revenue decline at DMG media, implying no price increases, a tough print UK ad market and a slowdown at Mail Online,” said Packer.

That’s in the short-term, but Exane is much more upbeat about the medium-term outlook for DMGT.

READ: DMGT slumps as it warns of further declines in newspaper advertising after 2017 loss

“In particular, at RMS(One) feedback from early adopters has been mildly positive, while significant losses going forward are included in our group forecasts,” said Packer.

The analyst added that the RMS business “retains significant long-term value”, while DMG events is still an “attractive asset in a consolidating space”.

As well as moving his rating up to ‘neutral’, Packer its thinks shares are worth 630p – considerably higher than his last target of 530p.

Shares were up 0.8% to 613p.

Wed, 24 Jan 2018 11:16:00 +0000
<![CDATA[News - Daily Mail and General places struggling, US property information business into Chapter 7 liquidation ]]> Daily Mail and General Trust PLC (LON:DMGT), publisher of the Daily Mail newspaper, has placed its struggling US property information business, Xceligent into liquidation.

Last month DMGT said it had launched a strategic review of Xceligent which followed a reduction in the carrying value of the US business to zero.

READ: DMGT slumps as it warns of further declines in newspaper advertising after 2017 loss

The media group has now announced that, following completion of that strategic review, the board of Xceligent has decided to file for Chapter 7 liquidation.

It added: “Under US law, a Chapter 7 trustee with expertise in liquidating companies will be appointed to distribute Xceligent's assets under well-established statutory law and a federal judge with financial expertise will oversee the proceedings in a public forum.”

DMGT said it holds no liability for any future costs associated with the litigation and its financial guidance issued for full year 2018 on November 30 remains unchanged.

It said the adjusted operating margin of DMGT's B2B portfolio of businesses was still expected to be in the mid-teens, including Xceligent's closure costs, and further exceptional cash costs relating to Xceligent were not anticipated.

In late afternoon trading, DMGT shares were trading 1.6%, or 9.5p lower at 602.5p.

 -- Adds share price --

Fri, 15 Dec 2017 07:43:00 +0000
<![CDATA[RNS press release - Closure of Xceligent ]]> Fri, 15 Dec 2017 07:00:04 +0000 <![CDATA[News - Daily Mail shares lower as Citi downgrades ]]> Daily Mail and General Trust Plc (LON: DMGT) shares were down 2.2% on Tuesday as Citigroup warned investors against trying to catch a falling knife and downgraded the share.

Citi analyst Natasha Brilliant moved the bank’s rating to neutral and lowered the price target to 600p from 880p.

READ: DMGT slumps as it warns of further declines in newspaper advertising after 2017 loss

“It’s been a tough year for DMGT. We saw two profit warnings in H1 under the new management team,” the analyst said.

“And at the FY17 results last week, expectations for next year were rebased which, coupled with a dilutive disposal of EDR, has resulted in a more than 20 percent cut to consensus earnings.”

Brilliant added: “The company themselves believe there is more work to be done on the portfolio, and a number of DMGT’s underlying markets remain challenged with both cyclical and structural headwinds taking effect.

READ: Daily Mail upgraded by Goldman Sachs to 'neutral' from 'sell' following underperformance

“At this stage, we have limited visibility on any potential improvement. On the positive, the balance sheet is in good shape suggesting a potential for increased shareholder returns, and valuation does not look stretched vs peers.”

The Citi analyst reckons the risk/reward is less compelling than it was before.

Tue, 05 Dec 2017 09:41:00 +0000
<![CDATA[News - DMGT slumps as it warns of further declines in newspaper advertising after 2017 loss ]]> Daily Mail and General Trust PLC (LON:DMGT) shares plunged after saying its advertising revenues are likely to remain “volatile” in the new financial year as it reported a 2017 loss.

The owner of the Daily Mail newspaper and MailOnline posted a statutory loss before tax of £122mln in the year to September 30, compared to £202mln last year, including impairment charges and exceptional costs related to its reorganisation and joint ventures.

READ: Daily Mail upgraded by Goldman Sachs to 'neutral' from 'sell' following underperformance

The prior year’s profits gained from the disposal of regional newspaper publisher Local World and e-commerce business Wowcher.

This year’s statutory earnings per share rose to 97.8p from 57.8p in 2016, boosted by the proceeds of cutting the group’s controlling stake in financial information service Euromoney to 49% from 67%.

Net debt decreased by £214mln during the year to £464mln, in part thanks to the reduced stake in Euromoney.

Excluding disposals and exceptional costs, the company delivered pre-tax profit of £226mln, though this was down 13% on the previous year.

MailOnline the saviour amid weak newspaper ad revenues 

Revenue was broadly flat on an underlying adjusted basis at £1.6bn and statutory revenue, excluding Euromoney, edged up 3% to £1.5bn.

Strong underlying revenue growth of 20% in MailOnline mitigated a 4% decrease at the Daily Mail and The Mail on Sunday newspapers.

The company said tough newspaper advertising market conditions “eased a little”, with underlying print advertising falling 5%, compared to a 12% drop last year. However, circulation volumes continued to fall at its newspapers.

The DMG Media division, which is home to its newspapers and website, delivered a 10% increase in underlying operating profit of £77mln as the MailOnline moved into a profit in the final quarter and the group cut costs in the newspaper businesses with the closure of its Didcot printing plant.  

Cautious outlook

Looking ahead, advertising revenues are “likely to remain volatile” in the DMG Media division as it expects declines in newspaper circulation volumes and print advertising to continue to offset digital advertising growth. 

The dividend per share was raised to 22.7p from 22.0p.

“The board is confident that the new strategy and strong balance sheet will, over the medium term, generate consistent earnings growth that will underpin DMGT's long-standing commitment to deliver sustainable annual real dividend growth,” said chief executive Paul Zwillenberg.

Liberum downgrades DMGT

Liberum downgraded its rating on the stock to ‘hold’ from ‘buy’ and cut its target price to 765p from 785p. The broker said while the full year results were broadly in line with its forecasts and the news that MailOnline has moved into profitability may be taken well, it is “concerned about the guidance”.

“What is clear is that DMGT faces another year of ‘transformation’ but it is not entirely clear when we will get the acceleration of top-line growth,” it said.

Shares fell 24.50% to 530p in morning trading. 

Thu, 30 Nov 2017 09:38:00 +0000
<![CDATA[RNS press release - Full Year Results ]]> Thu, 30 Nov 2017 07:00:06 +0000 <![CDATA[News - Daily Mail upgraded by Goldman Sachs to 'neutral' from 'sell' following underperformance ]]> Goldman Sachs has raised its rating on Daily Mail and General Trust PLC (LON:DMGT) to ‘neutral’ from ‘sell’ following the stock’s 23% underperformance compared to the Stoxx 600 over the past year.

The bank, however, cut its target price to 653p from 678p, to reflect its change to earnings estimates after the newspaper publisher warned earlier this month that full year pre-tax profit would be towards the lower end of market expectations.

READ: Daily Mail & General Trust shares fall as it sees profit at low-end of estimates, with underlying revenue up 1%

“Overall, our earnings estimates change by +4.6%/-2.4% for fiscal years 2017/18,” Goldman said.

Goldman said the Daily Mail continues to face risks from a decline in print advertising and an increase in cost inflation for raw materials.

In an update for the 11 months to the end of August, the company said print advertising revenue for the Daily Mail and Mail on Sunday newspapers fell 11%. However, the MailOnline website saw advertising grow 22%.

Its Risk Management Solutions business, which targets the global property and casualty reinsurance industry, delivered flat revenue.

Goldman estimates that 11% of group revenues are exposed to UK property transactions, which it expects will see “softer dynamics” as a result of Brexit and a competitive environment.

Revenue from the roll-out of DMGT's RMS(one) platform is not expected to have a material impact on earnings until fiscal year 2019, Goldman added.

READ: DMGT sells loss-making, viral video-sharing website Elite Daily

“DMGT trades at 13.7x 2018 price-earnings ratio, a 13% discount to our broader EU media coverage on 15.8x, which we view as justified given the structural challenges and below-average growth outlook,” the bank said.

“Risks to our view and price target include: (1) stronger- or weaker-than-expected print advertising; (2) faster- or slower than-expected growth in RMS or Mail Online; (3) value-enhancing or destructive M&A; and (4) foreign exchange movements.”

Shares edged up 0.38% to 661p in morning trading. 

Tue, 17 Oct 2017 10:53:00 +0100
<![CDATA[News - Daily Mail & General Trust shares fall as it sees profit at low-end of estimates, with underlying revenue up 1% ]]> Daily Mail & General Trust PLC (LON:DMGT) saw its shares fall back today after the newspapers publisher said while its full year guidance remains unchanged, pretax profit is seen towards the lower end of market expectations.

In morning trading, DMGT shares were 2.1%, or 13.5p lower at 635p.

READ: Daily Mail shares drop after cuts to guidance for both its information and events businesses

In a trading update covering the 11 month period to the end of August 2017, the newspapers group said its reported revenues were up 5%, including a 6% benefit from foreign exchange rates, although underlying pro forma revenue growth was just 1%.

The firm’s dmg media unit saw underlying revenues rise 1%, including strong digital advertising growth, while underlying revenue at its B2B business also grew by 1%.

The group said MailOnline's advertising revenues in the 11 months increased by an underlying £19mln, or 22%, reflecting encouraging growth in both the US and the UK.

It added that this more than offset a decline of £15mln, or 11%, at the Daily Mail and The Mail on Sunday, and advertising revenues across the Mail businesses as a whole, for print and digital combined, consequently grew by an underlying 2%.

DMGT said: “Whilst market conditions remain challenging for some specific Group companies, the guidance for the Full Year remains unchanged. The outlook for the Group as a whole is in line with market expectations with adjusted EPS (earnings per share) towards the higher end of the range and adjusted PBT (profit before tax) towards the lower end of the range.”

Strategic review reaching completion

The group added that its strategic review, including the identification of which businesses and sectors merit further investment, is reaching completion and an update on the firm’s strategy to deliver long-term growth will be provided with the full year results scheduled for November 30.

In a note to clients, analysts at Numis Securities said: “Our numbers were high coming into this statement, we reduce our 2017E PBT/EPS to £213.9m/52p (previous £227m/52.7p).”

But they repeated a ‘buy’ rating and 970p price target on the stock, saying: “DMGT shares have been under considerable pressure over the past 12 months, the shares remain stand out value at current levels.”

 -- recasts lead, adds share price, analyst comment --

Mon, 02 Oct 2017 07:46:00 +0100
<![CDATA[RNS press release - Trading Update ]]> Mon, 02 Oct 2017 07:00:04 +0100 <![CDATA[RNS press release - Disposal of Admissions education business ]]> Fri, 29 Sep 2017 07:00:03 +0100 <![CDATA[RNS press release - Notification of next trading update ]]> Thu, 17 Aug 2017 07:00:06 +0100 <![CDATA[RNS press release - Third Quarter Trading Update ]]> Thu, 27 Jul 2017 07:00:06 +0100 <![CDATA[News - Daily Mail shares drop after cuts to guidance for both its information and events businesses ]]> Daily Mail and General Trust PLC (LON:DMGT) saw its shares drop by over 8% this morning , with investors reportedly disappointed by cuts to guidance for both its information  and events businesses.

For the six months to March 31, DMGT reported a 5% fall in adjusted pre-tax profit to £105mln, as underlying revenues increased by just 1% to £890mln, reflecting pressures in its information business and planned investment costs.

The half-results are the first to exclude Euromoney Institutional Investor PLC (LON:ERM) from the consolidated numbers, with DMGT having cut its stake in the publisher to 49% from 67% in early December.

READ: Euromoney shares plunge as Daily Mail owner cuts stake

For the full year, the group said its outlook was largely unchanged, but added that the dmg information division was now expected to produce a full-year underlying revenue growth rate in the low-single digits, compared with a previous forecast of mid-single digit growth.

The company also surprised by cutting guidance for dmg events’ underlying revenue growth to mid-single digit growth from high-single digit growth.

Guidance cuts likely to be taken negatively

In a note to clients today, analysts at Liberum Capital said “the scaling back of top-line FY guidance for dmg information and dmg events is likely to be taken negatively and raise questions about operational performance.”

However, Liberum retained its ‘buy’ rating and 900p price target on DMGT shares

DMGT’s first-half print advertising revenue fell by 8%, although that was better than the 12% decline reported for 2016.

The group’s MailOnline business which includes the advertising posted around its hugely popular website, saw its underlying revenue jump by 19%, but for the Daily Mail and Mail on Sunday newspapers revenue fell by 3% in the first-half.

Challenging market conditions to persist for some of  DMGT’s businesses

Paul Zwillenberg, the firm’s new chief executive - who look over at the start of 2017 - said: “DMGT's performance in the first half was broadly in line with our expectations.” 

He added: “We are encouraged by the underlying profit performance at dmg media, where MailOnline continues to increase its revenue, taking real strides on its path to profitability.”

The CEO concluded: “In the second half of the year, although we expect challenging market conditions to persist for some of our businesses, we will continue to focus on improving operational execution and completing our strategic portfolio review during this period of transition.”

In late morning trading, DMGT shares were down 8.4%, or 63p at 689p.

Thu, 25 May 2017 11:13:00 +0100
<![CDATA[RNS press release - Half-year Report ]]> Thu, 25 May 2017 07:00:11 +0100 <![CDATA[News - DMGT sells loss-making, viral video-sharing website Elite Daily ]]> Newspapers group Daily Mail and General Trust PLC (LON:DMGT) is selling its viral video-sharing website Elite Daily to Bustle Digital Group for an undisclosed price.

In a statement today, the publisher of the Daily Mail said the sale of the loss-making business will enable its consumer division, dmg media, to concentrate its digital resources on MailOnline, reportedly the world’s most-read news website.

CLICK HERE: For a daily round-up of all the Proactive news …

The group added that its focus will particularly be in the US “where MailOnline remains committed to expanding its editorial offering and growing its audience on the web on Snapchat Discover and on DailyMailTV, which launches in the autumn of 2017.” 

DMGT also disclosed that, in the six months to March 2017, MailOnline grew its revenues by approximately 20% on an underlying basis, including underlying growth in excess of 25% in the US. 

No sacred cows …

The move comes after the firm announced in December that it was cutting its stake in separately-listed financial information service Euromoney PLC (LON:ERM).

DMGT’s new chief executive Paul Zwillenberg has said there would be “no sacred cows” as he conducts a strategic review of the publishers’ business.

DMGT bought Ellite Daily in January 2015 to try and capitalise on the site’s popularity with younger audiences on Facebook.

But at the end of last year, DMGT wrote down the value of the business, resulting in an impairment charge of £25mln.

In a note to clients, Liberum Capital analyst Ciaran Donelly said: “This is consistent with DMGT's strategy announced at the FY'16 presentation that they were looking to dispose of non-core assets and focus investment on a small number of assets.

“MailOnline is one of the assets we highlighted as one of the potential core assets that DMGT would focus investment on and the RNS supports this thesis.”

Liberum repeated a ‘buy’ rating and 900p price target on DMGT.

In early morning trading, DMGT shares were 0.4%, or 3p lower at 713.5p.

 -- Adds broker comment, share price --

CLICK HERE: For a daily round-up of all the Proactive news … ]]>
Tue, 18 Apr 2017 07:27:00 +0100
<![CDATA[RNS press release - Disposal of Elite Daily ]]> Tue, 18 Apr 2017 07:00:13 +0100 <![CDATA[RNS press release - Appointment of CFO ]]> Thu, 06 Apr 2017 07:00:17 +0100 <![CDATA[News - 15% upside at Daily Mail reckons Liberum ]]> It’s one step back, two steps forward for the Daily Mail Group (LON:DMGT) following its sale of a chunk of holding in Euromoney according to Liberum.

The backward move is the reduction in earnings per share over the next two years by 19% and 24% respectively, but the positive for the broker is that management has made it clear that they are looking to reorganise the portfolio.

“We believe that we are going to see a re-rating of the stock as it is clear that management is going to reorganise the structure of the portfolio thus recognising the true value.

"DMGT previously funded acquisitions through disposals but going forward they will fund acquisitions through operating cash flow generation, which may indicate the businesses it will now prioritise.

“On a SOTP (sum-of-the-parts) basis we value the shares at 900p [950p], which implies a c.15% upside to the current share price.”

'Buy' is its view. Shares today were 773p.


Thu, 22 Dec 2016 11:04:00 +0000
<![CDATA[News - Euromoney shares plunge as Daily Mail owner cuts stake ]]> Newspaper and media giant Daily Mail and General Trust Plc (LON:DMGT) is set to lose Euromoney as a subsidiary as it sold shares in the group to cut its stake to 49% from 67%.

The Daily Mail owner sold around 32.3mln Euromoney shares at 975p each raising gross proceeds of around £315 million.

Euromoney (LON:ERM) publishes the Euromoney magazine and shares tanked 9.2% to 1,017p on the news.

The Daily Mail & General Trust recently reported an 11% decline in adjusted operating profit for the 12 months to September 30. Revenue at Euromoney fell 4% on an underlying basis.

DMGT said today that as a result of the sale, the share of operating profits from joint ventures and associates in the year to end September 2017 is now expected to be around £65mln rather than around £25 million, as guided in December last year.

DMGT shares shed 2% to 776p in early deals.

Fri, 09 Dec 2016 09:24:00 +0000
<![CDATA[News - Daily Mail and General Trust finals beat City estimates ]]> Shares in Daily Mail and General Trust plc (LON:DMGT) raced up nearly 8% in early deals as revenues and profits for the full year beat City expectations, but the group still saw a 23% drop in profits at its newspaper arm.

Operating profit at DMG Media fell 23% to £77mln for the 12 months to end September compared to £96mln last year.

The division includes the free Metro paper, the Daily Mail and The Mail on Sunday.

The firm said the tough newspaper advertising market conditions it had experienced in the second half of 2015 had persisted, with print advertising revenues declining by 12%.

This was largely offset, however, by online advertising revenues, which were 17% higher at DMG Media.

Across the group as a whole, total  combined advertising revenues declined by an underlying 4% to £326mln. Pre-tax profit was 7% lower at £260mln but revenues were up 4% to stand at £1.9bn.

Chief executive Paul Zwillenberg remained upbeat and said the results reflected "the ongoing resilience of the portfolio through varying market conditions". 

"Revenues were supported by good organic growth in many of our B2B and consumer digital operations.  This was balanced by challenging market conditions for print advertising, property information, energy and financial sectors," he added.

"The significant organic and M&A investments made across the group over the past few years have started to bear fruit.  Alongside this we have been expanding MailOnline while our newspapers continue to outperform the market."

City broker Numis said: "DMGT has reported 2016 results that are ahead of our estimates at every level."

It repeats  a 'buy' and targets 970p for the shares, which it says are very good value at current levels.

Shares gained 7.68% to stand at 823p on the day.

Thu, 01 Dec 2016 10:57:00 +0000
<![CDATA[News - Daily Mail & General Trust cuts 400 jobs amid weak advertising ]]> The owner of the Daily Mail and Mail on Sunday is cutting more than 400 jobs to help it deal with a decline in newspaper advertising.

Daily Mail and General Trust plc (LON:DMGT) said it was launching a shake-up of certain businesses in the group that were facing challenging markets.

It did not give details in a statement about which businesses were being restructured or how many jobs would go.

But reports put the number at over 400 and said just under half would come from its DMG Media business, which includes the Daily Mail, Mail on Sunday and Mail Online.

The cuts would hit all areas of its business, although editorial cuts were "not significant", The Guardian quoted finance chief Stephen Daintith as saying.

"Given the challenging market conditions facing certain businesses within the portfolio, reorganisation initiatives are being implemented to protect their profitability," DMGT said in its trading update.

"The reorganisation initiatives, which include headcount reductions, are expected to result in total cash-related exceptional operating costs in the current financial year of approximately £50mln, rather than the £15mln previously guided to in May."

Along with rivals, DMGT's traditional newspaper publishing business has suffered in the face of tough advertising markets and online competition.

Revenue at DMG Media took a 2% tumble in the 11 months to the end of August as total year-to-date underlying advertising revenue fell 4%.

A 17% rise in digital advertising revenue helped to make up for a 12% decline in print advertising.

In the five weeks since August 21, total advertising revenues in the media business dropped by an underlying 10%.

But DMGT said its full-year outlook remained in line with market expectations thanks to a relatively stronger performance in its business information operations.

DMGT reported a 2% rise in underlying revenue at its business-to-business activities such as DMG Information, risk management, events and Euromoney Institutional Investor.

Reported revenues benefited from the weaker British pound relative to the US dollar.

Shares in DMGT rose 7p, or 1%, to 720.5p in early London trading.

Thu, 29 Sep 2016 09:05:00 +0100
<![CDATA[News - Daily Mail and General Trust takes 'Brexit' advertising hit ]]> Daily Mail and General Trust plc (LON:DMGT) posted higher third-quarter revenue but said EU referendum uncertainty had hit the advertising market.

DMGT, whose Daily Mail newspaper backed an EU exit, said underlying revenue rose 1% against the same period a year ago.

But underlying revenue from its DMG Media business, which includes the newspapers, fell 2% due to a weak print advertising market.

Circulation revenue fell 1% due to declining volumes and total advertising revenue dropped 4%.

Growth of 12% in digital advertising partly offset a 10% decline in print advertising.

Elsewhere, the group's business-to-business activities such as risk management, data provision, events and Euromoney Institutional Investor, increased underlying revenue by 3%.

The company said in a trading statement: "The group's performance during the third quarter has been broadly in line with expectations.

"The 'Brexit' result of the UK referendum has created some uncertainty, notably in respect of the UK advertising and property markets.

"However, DMGT continues to benefit from being a diversified portfolio operating in multiple sectors across B2B and consumer markets, with the majority of operating profits being earned outside the UK."

Shares rose 13.5p, or 2%, to 689.5p.

Thu, 21 Jul 2016 11:35:00 +0100
<![CDATA[News - Slump in print knocks Daily Mail's profits ]]> Shares in Daily Mail & General Trust (LON:DMGT) saw their worst performance in more than a decade falling by almost 8% at market open today after half-year profits tanked.

The media group, which owns the Daily Mail tabloid newspaper, saw an 11% fall in profits to £129mln following a slump in advertising.

Print advertising fell 13%, outstripping any increase in digital advertising, largely due to the 3% dip in newspaper circulation. 

Circulation of the group’s newspapers, the Daily Mail and the Mail on Sunday, dropped 3%.

"DMGT's performance in the first half was broadly in line with our expectations, other than the further deterioration in the UK print advertising market,” said chief executive Martin Morgan.

"The reduced print advertising revenues had an adverse impact on DMG media's operating profits."

Morgan also announced his retirement after 27 years with the group, eight as CEO. Paul Zwillenberg will take over the role from next month.

In April, the company announced it was considering a bid for the beleaguered US internet group Yahoo. It is still in talks with a number of private equity firms regarding an offer.

Shares were down 8.5% to 681.5p.

Thu, 26 May 2016 10:01:00 +0100
<![CDATA[News - Daily Mail & General Trust in takeover bid for Yahoo's internet platform ]]> The parent company of the Daily Mail (LON:DMGT) has approached companies in a potential bid for ailing tech firm Yahoo (NASDAQ:YHOO), it emerged this morning.

The Daily Mail & General Trust PLC, owner of the British tabloid, has entered into discussions with several private-equity firms to help finance a takeover bid for Yahoo’s online media platform.

A takeover of Yahoo would significantly increase the Mail’s presence in the US. It launched a version of its website in the US in 2012 where it is currently one of the top-ranking news sites.

The group is yet to meet with Yahoo executives and joins a wide group of interested companies including telecom giant Verizon.

Verizon currently owns AOL and is looking to beef up its digital media and advertising businesses.

Analysts are tipping Verizon as a front-runner for Yahoo.

“Given the success of and Elite Daily, we have been in discussions with a number of parties who are potential bidders,” a Daily Mail spokesman told the Wall Street Journal.

A possible bid by the Daily Mail could come in two forms, according to analysts.

In the first scenario, a private-equity partner would acquire the entirety of Yahoo’s operations and the Mail would take over the running of its news and media properties, including assets such as Yahoo News, Yahoo Finance and Yahoo Sports.

Yahoo was forced to close a number of its digital magazines in February, including sites dedicated to food, parenting and health, and has since focused on its News, Finance and Sports businesses.

The second possible scenario would involve a private-equity firm acquiring Yahoo and merging its news and media assets into a new company, including the Mail’s online platforms, such as In this outcome, the Mail would run the business and therefore own a larger stake.

As part of a major strategic rethink, Yahoo has been exploring a sale of its core internet business for some time.

Earlier this year, the group hired Goldman Sachs, JPMorgan and PJT to advise a newly established committee of independent board directors on alternatives for the company, effectively excluding Marissa Mayer, the beleaguered chief executive, from decisions about the future of a company she has run for over four years.

Analysts at Liberum believe that there is a significant amount of unrealised value in the Daily Mail group’s current asset portfolio.

“The deal and potential reorganisation of assets would be a positive step in realising this value,” said the broker.

Shares in Daily Mail and General Trust stood at 700.5p. Shares in Yahoo were down slightly to $36.07.

Mon, 11 Apr 2016 10:59:00 +0100
<![CDATA[News - DMGT lifts Daily Mail cover price as print advert revenue dips ]]> The company behind the Daily Mail is hiking the newspaper's cover price by 8.3% as it reported lower circulation and print advertising revenue.

Daily Mail & General Trust (DMGT) (LON:DMGT) said the price of the Monday to Friday issues of the Daily Mail will increase from 60p to 65p from Monday February 1, the first increase for three years.

The group said reported revenues from DMG Media, the division that also includes the Mail on Sunday, fell 2% on an underlying basis to £188mln.

Circulation revenues were down 4% due to declining volumes, although both Mail titles continued to increase market share.

Total advertising revenues across the division were down by an underlying 2%, with a 12% decline in print advertising largely offset by a 32% increase in digital advertising.

DMG Media's Total reported revenues declined by 1%.

But the paper's fast-growing online edition, Mail Online, put in a better performance with digital advertising revenues up an underlying 27% in the quarter, including a 66% increase in the US and 17% in the UK.

Mail Online's average number of global monthly unique browsers during the quarter was 220 million, up 24 million or 12% on last year, and average global daily unique browsers rose 11% to 13.7mln against last year.

In the four weeks since December 27, Total underlying advertising revenues at DMG Media were 12% lower than last year.

For the full year, the company said DMG Media still expected to achieve stable underlying revenues in the -2% to +2% range.

Elsewhere, DMGT said underlying group revenue in the first quarter to December 31 rose 1% to £500mln against the same period a year ago.

Underlying revenue in its business-to-business operations rose 2%. Group net debt increased £21mln to £723mln, in line with expectations.

DMGT announced on January 13 that chief executive Martin Morgan would retire from the group at the end of the calendar year 2016.

The company kept its revenue and profit outlook for the year unchanged. Shares fell 4p to 657.5p.

Thu, 28 Jan 2016 11:20:00 +0000
<![CDATA[News - Companies ring the changes in 2016 as bosses step down ]]> Companies rang the changes in early 2016 as three chief executives stepped down.

Daily Mail publisher DMGT (LON:DMGT) announced that its chief executive Martin Morgan is retiring at the end of this year.

Morgan has been with the newspaper and online group for 27 years and took up his present role in 2008.

The company is launching a search for his replacement and candidates reportedly include finance director Stephen Daintith and Suresh Kavan, who has led Morgan’s old unit DMG Information since 2008.

News distribution and airport ground handling group John Menzies (LON:MNZS) said chief executive Jeremy Stafford had tendered his resignation for personal reasons.

In November last year, Menzies warned on annual profits after incurring £6mln of extra costs at Gatwick airport to correct operational issues.

Elsewhere, African airline Fastjet (LON:FJET) said chief executive Ed Winter was stepping down, but would stay in his post until a successor is appointed.

Winter has presided over Fastjet's expansion including opening hubs in Tanzania and Zimbabwe and providing multiple domestic services.

He has also overseen the airline's success in winning international rights to fly from Tanzania to South Africa, Zambia, Zimbabwe, Uganda, Malawi and Kenya.

However, challenges have included funding, legacy and competition issues, as incumbent flag carriers resisted rivals encroaching on their traditional routes.

African airlines are also facing difficulties caused by the downturn in the mining industry, which has hit demand for business travel.

Fastjet chairman Colin Child said: "Over the past four years, Ed has made significant and sustained progress towards Fastjet's goal of becoming Africa's first true low-cost pan-African airline."

Wed, 13 Jan 2016 15:25:00 +0000
<![CDATA[News - Daily Mail publisher's shares dip as print worries continue ]]> The owner of the Daily Mail newspaper saw shares slide in early deals as challenges in the print market persist and it delivered a 4% decline in pre-tax profits for 2015.

Daily Mail and General Trust (LON:DMGT) boss Martin Morgan, said however the group had a portfolio of innovative businesses, which positioned it well for long term growth.

As well as understandable challenges in UK print advertising with the rise of online, the firm pointed to financial data provider Euromoney, in which it has a majority stake, which it expects to continue to struggle in 2016.

These are likely to have an adverse impact on 2016 full year results, as well as the disposal of DMGT's stake in Local World, which completed in November 2015, said Morgan.

Group pre-tax profit for the year to end September was £281mln compared to £291mln in 2014, on revenues of £1.84bn compared to £1.86bn in 2014.

Earnings per share however showed the strength of the group's core - up 7% to 59.7p from 55.7p in 2014.

The group said some of its B2B (business to business) businesses were facing challenging market conditions but it still expect to deliver underlying revenue growth for the overall sector.

"On the consumer side, revenue progress will be largely dependent on the print advertising environment, balanced against further growth in digital areas, although a continued focus on cost efficiencies should provide margin stability for dmg media," it added.

"Continuing investment to drive innovation, coupled with active portfolio management, ensures that DMGT is well placed to create long-term shareholder value."

Shares slipped however around 7% to stand at 655p each.

Wed, 25 Nov 2015 10:18:00 +0000
<![CDATA[News - Brokers support DMGT despite mixed ad revenues ]]> Brokers were supportive of Daily Mail and General Trust (LON:DMGT) as it reiterated its full-year profit forecast despite weaker revenues from its media business. 

“Despite this morning's release being a little weaker than we had anticipated we take confidence from the group's reiterated FY outlook,” said Credit Suisse.

“We continue to believe that the group's valuation looks undemanding given the quality of DMGT's assets.”

The group, which owns the Daily Mail, Mail on Sunday and MailOnline, said advertising revenues across all businesses fell flat in the five months to February.

A £7mln decline in print advertising revenues to £76mln during the period was offset by a 20% rise in online sales, with MailOnline seeing a £5mln rise to £29mln to offset the weaker print performance.

Best growth (34%) came from voucher business Wowcher, which now has a database of 6.5mln subscribers, 40% more than this time last year.

London morning newspaper Metro also delivered a resilient performance, growing UK print advertising revenues by 4%.

Joint venture Euromoney saw a 3% decline in underlying revenues.

Away from media, the risk management business, RMS, was hampered by a decline in consultancy fees over the five months - although a strong US dollar helped out. 

Its information unit, which provides business-to-business information to the property, education, commodity and medical markets, delivered underlying growth of 5%.

“Shares may drift though there is nothing disastrous here,” said Investec analyst Steve Liechti. “The numbers look OK overall.”

DMGT left its revenue and profit outlook for the year unchanged and said it had continued the £100mln share buyback programme announced in September.  

'A' shares were 15p lower in afternoon trading, priced at 859p.

Thu, 26 Mar 2015 13:56:00 +0000
<![CDATA[News - Daily Mail shares sink as software launch delay is "running sore" ]]> Daily Mail (LON:DMGT) shares sank almost 7% in early deals as the media and publishing group warned operating profits would be lower for its full year due to the delay in a software launch at its RMS subsidiary.

RMS is a risk modelling firm serving the insurance industry, the core business of which continues to show underlying growth, the firm revealed in a pre-close statement.

Updates to the European Windstorm and North Atlantic Hurricane models are due for release in early 2015.

The RMS (one) platform is intended to deliver the firm's first high definition models to a broader client base but the launch was postponed.

That will mean an impairment to the £85mln carrying value of the asset. Revenue from the product is now not expected until 2016.

City broker Canaccord, which repeated a 'hold' rating, said the focus of the statement was once again "weak" execution of the platform launch.

"Plans have been put back again, with a phased launch throughout 2015, versus the previous target of a hard launch by April 2015.

"Management now expects an additional £5mln of costs for FY14, driving profits to the bottom of the guided £45mln to £50mln range," said analyst Simon Davies, referring to RMS's expected adjusted operating profit.

The broker has lowered its target price on the stock to 852p from 880p previously (current price: 761p).

Investec said the RMS (one) issue looked like a "running sore" on sentiment. However, it does rate the stock a 'buy' and says it likes the group's portfolio refocus story.

Meanwhile, the group said it expects full year results to be in line with market expectations, despite headwinds from the strong pound against the US dollar.

Revenue performance was solid, with the underlying figure in the 11 months to end-August this year up 5% compared to the prior year.

B2B operations also did well, it told investors, with growth driven by acquisitions.

The portfolio was actively managed during the year, it said, disposing of its digital recruitment Evenbase and 39% of its interest in Zoopla Property Group.

Wed, 17 Sep 2014 12:04:00 +0100
<![CDATA[News - Zoopla prices shares at 200p-250p ]]> Online property group Zoopla has set its offer price at between 200p and 250p ahead of the start of conditional dealings on 19 June.

The price values Zoopla, which is currently 52.6% owned by the Daily Mail and General Trust (LON:DMGT), at between £833mln and £1.04bn.

The range gives Zoopla a price-to-earnings ratio lower than that of its main rival, Rightmove (LON:RMV).

Conditional trading, when institutions and Zoopla’s subscribing members can start dealing the shares, begins on 19 June, followed by the start of unconditional trading, which includes retail investors, on 24 June.

The fast-growing group laid out its plans last month for its flotation in which it said subscribing members – that means estate agents, lettings agents, new home developers, and franchisors – will be able to get their hands on up to £2,500 of stock at a 20% discount to the offer price.

Zoopla aims to sell up to 179mln shares, representing 43% of the existing share capital.

The final pricing will take place in a fortnight.

Zoopla’s founder and chief executive Alex Chesterman, who holds an 8% stake in the business, said: “Today's announcement reflects the strong level of investor interest in our business and underlines the growth potential of Zoopla Property Group. 

“We have been delighted with the response to the news of our intention to float, including from our members who will have the opportunity to participate in the initial public offering and become shareholders in our business.”

Questions have been asked about the timing about the float given the recent instability in the IPO market.

Today’s shock profit warning from online superstar ASOS (LON:ASC) will not have helped matters.

Thu, 05 Jun 2014 09:02:00 +0100