Daily Mail in financial doldrums

The group which owns the Daily Mail as well as several local papers and the Sunday edition of the paper, The Mail on Sunday has said that profits are likely to be lower this year than they were in the last. The owners of the paper have said that operating profits have fallen because of the falling advertising revenue.

The consumer part of the media group as said that they have seen a three percent drop in revenues since this time last year. Martin Morgan is the chief executive of the group and has said, “We continue to focus on being as efficient as possible, the problem is that we simply do not have the advertising revenue that we have seen in previous years. This is why we are going to see lower profits this year.”

The group has had some good news though as its business to business publications have done better than the same period last year. An example of the publications that they produce for this market include DMG Events, the success of these publications helped the group to an overall growth of 1%. Analysts are expecting the profit of the group to fall by £10 million for the whole year compared with last year where profits were at £303 million.

The group, in an effort to combat the increasing price of news print decided to raise the cost of the Daily Mail by 5p. The group has said that weakened circulation as well as the increasing cost of newsprint is affecting the profits for the entire group. The largest advertising categories for the group have reduced by around 5%.