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Media

Daily Mail and General Trust takes 'Brexit' advertising hit

Mail publisher boosted underlying revenue by 1% against the same period a year ago

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.

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