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Daily Mail & General H1 Revenues Down, Expects Lower Profit; Shares Down

Shares of Daily Mail & General Trust Plc (DMGT.L) declined around 4 percent on London Stock Exchange after the British multimedia and information company said its revenues for the first half declined 2 percent and that it projects lower profits. Daily Mail maintained its outlook for the full year.

Meanwhile, its B2B media unit Euromoney Institutional Investor Plc (ERM.L) generated higher revenues, with expectations for increased profit for the first reflecting continued good performance, particularly from its subscription revenues.

Daily Mail's first-half revenue performance was hurt by a 45 percent drop in dmg events, and lower revenues at consumer media, Associated Newspapers and Northcliffe Media units along with flat revenues in BRB operations. These were partly offset by good results in RMS, dmg information and Euromoney units.

On an underlying basis, total revenues grew 2 percent.

According to the company, Associated's revenue performance was resilient with circulation and digital revenue growth largely offsetting print advertising weakness.

In a separate statement, Euromoney said its revenues for the first half are expected to increase 13 percent to 189 million pounds. Underlying revenues, increased about 5 percent.

Regarding its profit forecast, Daily Mail said its adjusted operating profits and profit before tax would be lower than last year. This reflects the expected reduced profitability from dmg events and lower profits from Associated due in part to lower advertising revenues and higher newsprint costs, among others, the company said.

Meanwhile, Euromoney expects adjusted profit before tax of not less than 47 million pounds for the period, higher than last year's 41.6 million pounds. The adjusted operating margin is expected to be unchanged at 30 percent.

On the LSE, Daily Mail shares are currently loosing 18.30 pence or 4.12 percent, and trading at 426.30 pence, while Euromoney shares are gaining 9.10 pence or 1.21 percent and trading at 759.10 pence.

by RTT Staff Writer

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