Shares in Daily Mail owner jump on profit boost as streamlining strategy pays off
Shares in Daily Mail and General Trust (DMGT) jumped as much as 10 per cent this morning after it posted strong growth in profit for the half-year.
The Daily Mail owner reported a 19 per cent increase in adjusted profit before tax to £100m in the six months to the end of March, while revenue ticked up one per cent to £724m.
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Total revenue for the group’s news portfolio rose a marginal one per cent, as a sharp rise in income from Mail Online offset a five per cent decline in the flagship Daily Mail and Mail on Sunday titles.
Chief executive Paul Zwillenberg welcomed the results, saying DMGT had delivered a “strong performance” in consumer media and growth in its B2B division.
The firm also revealed it had sold off its 40 per cent stake in US property information business Real Capital Analytics for $89m (£70m).
It comes after DMGT returned its 49 per cent stake in business media group Euromoney to shareholders earlier this year as it looks to streamline the business.
The share giveaway also boosted Lord Rothermere’s control of the company, lifting his family’s stake in non-voting shares to 36 per cent.
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Zwillenberg described the move as a “defining moment” for the firm, adding its strategy was “transforming DMGT and delivering results”.
DMGT said it expects a slowdown in media revenue growth and operating margins in the second half, but maintained its overall guidance for the full-year.