UK-based multi-media and information company Daily Mail & General Trust Plc. (DMGT.L) Wednesday said its trading in the eleven month period to the end of August was in line with expectations, and that group outlook for the year has been reconfirmed despite currency headwinds. The stock fell 7 percent in early morning trade.
Group revenue rose 1 percent on a reported basis and advanced 5 percent on an underlying basis.
In Business to Business or B2B, revenue increased 12 percent and underlying revenue advanced 8 percent. Within the business, Risk Management Solutions or RMS showed underlying revenue growth of 5 percent, driven by its core catastrophe risk modeling business.
In dmg information, revenue climbed 34 percent and underlying revenue growth was 13 percent with double digit underlying growth delivered by Hobsons, Genscape and the property information businesses.
dmg events reported revenue increase of 18 percent and a strong underlying revenue growth of 23 percent.
In dmg media, revenue slipped 4 percent and underlying growth was flat with advertising growth offsetting the decline in circulation. The Daily Mail and The Mail on Sunday reported increases in market share in August.
MailOnline's digital advertising revenue growth climbed 49 percent during the period. Print advertising revenues were down 5 percent to 172 million pounds at the Daily Mail and The Mail on Sunday for the same period.
Despite the headwinds of the stronger British pound relative to the US dollar, the firm's full-year guidance remains unchanged. DMGT expects its adjusted results to be in line with market expectations.
The group continues to look for attractive acquisitions while maintaining a policy of growing dividends by 5 to 7 percent in real terms over the economic cycle.
The Board has decided to utilize part of its authority to make further on market purchases of the 'A' Ordinary Non-Voting shares. DMGT expects to spend up to 100 million pounds on this new share buy back program.
The stock fell 7 percent in early morning trading to 758 pence.
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