Shares in newspaper publisher Daily Mail and General Trust rose nearly 7 percent on Thursday, despite seeing a sharp drop in several key figures over the past financial year.
The group, who publishes the Daily Mail and the Mail on Sunday, saw operating profit fall 4 percent over the past 12 months to £277 million. Profit before tax fell 7 percent to £260 million, with revenue benefitting from a 4 percent boost and growing to £1,917 million.
The group highlighted its “resilient performance from B2B” and attributed a 23 percent fall in adjusted profit to a significant increase in digital investment. Net debt was reduced by £23 million to £679 million after a strategic reorganisation.
DMGT’s CEO Paul Zwillenberg commented:
“DMGT’s results reflect the ongoing resilience of the portfolio through varying market conditions. Revenues were supported by good organic growth in many of our B2B and consumer digital operations. This was balanced by challenging market conditions for print advertising, property information, energy and financial sectors.
“Our focus has been on prudent financial and strategic management of DMGT’s diversified portfolio. We have continued to invest in long-term growth opportunities across a variety of organic initiatives whilst making small bolt-on acquisitions, maintaining a strong balance sheet and continuing to deliver real dividend growth for our shareholders.
“We have established clear priorities to improve our operational execution, increase the portfolio’s focus and enhance our financial flexibility. There is plenty to be done and I am confident that, over time, the revised strategy will reinvigorate DMGT’s growth.”
The print newspaper industry has been in decline for several years, struggling to keep up with the newer online-only news sites that benefit from lower operating costs. National newspaper The Independent became the first major publication to phase out its print copies earlier this year, moving their entire publication online.
Daily Mail & General Trust (LON:DMGT) shares are currently up 6.82 percent at 815 pence per share (1001GMT).