DMGT - Diversification shields exposure to UK advertising downturn

If you are writing on today’s results from DMGT (Daily Mail & General Trust), please consider the following comment from Andy Viner, Head of Media, at accountants and business advisers BDO.

Andy Viner, Head of Media, at BDO says: “DMGT has had a solid start to its financial year with a positive set of results which have seen revenue increase by two per cent.”

“Considering the current market, today’s results are particularly encouraging, and DMGT has stated that it believes it will meet this year’s cost cutting and revenue targets,” continues Viner.

“The company is evidently benefiting from having a clear long-term strategy which includes international expansion and a diversified portfolio which is less reliant on UK newspaper titles in the consumer market towards the more resilient and subscription based B2B market,” points out Viner.

“DMGT will be disappointed with the fall in both national and regional advertising revenues, which are below the industry benchmark.  In addition, the single digit growth in digital advertising suggests that it has been slow in shifting from classified to online advertising quickly enough.”

“On a more positive note, the media giant looks set to benefit from the continued strengthening of the US dollar in the second quarter of the year,” concludes Viner.

ENDS

For more information, please contact Dee Crooks at BDO on 020 7893 2761 / 07815 172 051 or email dee.crooks@bdo.co.uk

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