Daily Mail and General Trust PLC (LON:DMGT) reported lower half-year revenues and profits as a large decrease in print advertising revenues from more people working from home offset growth from the MailOnline website and from its investment portfolio, including in used car dealership Cazoo.
Revenues reversed 12% to £547mln in the six months to 31 March, the Daily Mail and Metro newspaper publisher reported.
Underlying growth from MailOnline of 9% was more than offset by a 38% decrease in print advertising revenues, which it said reflected "particularly challenging market conditions for Metro" as very few workers were picking it up on the way to work, resulting in total underlying advertising revenues decreasing 17% to £148mln.
Revenue was bolstered at the end of the period with the acquisition of the New Scientist for £67mln, with chief executive Paul Zwillenberg saying this subscriptions-led business will improve the quality of revenues.
Other changes in the DMGT investment portfolio included the sale of education technology business Hobsons in two parts for roughly £290mln, while a £34mln further investment in Cazoo saw its stake valued at £117mln in October before the proposed US$7bn Wall Street SPAC deal saw the stake valued at circa US$1.35bn (£950mln).
“Our financial flexibility enabled us to continue to invest in Cazoo through multiple funding rounds,” Zwillenberg said. “Despite the near-term economic uncertainty, we had conviction in its opportunity to transform the used car market added.”
Statutory profits before tax fell 45% to £42mln, while underlying PBT was down 20% at £47mln.
The interim dividend was upped 1% to 7.6p.