Daily Mail sees Australian revenues drop 15%
The Daily Mail Australia has seen its revenue drop by 15% for the six months ended March 31 while the UK business was hit by declining print advertising revenues and declining circulation revenues.
The publishing company’s Australian operations revenue amounted to $13.4m (£6.6m), down from $15.8m (£7.8m) in the corresponding six month period. The Australian results include contribution from other businesses it owns here.
In January Nine Entertainment Co opted out of its partnership with the Daily Mail Australia to its British-based parent company The Daily Mail General Trust, just over two years after the joint-venture was created.
Shortly after Nine CEO Hugh Marks told the company’s AGM, at which Nine announced a $9.8m write down mainly based on the ending of the venture, the split had happened because Nine had “no control over their costs” and claimed the business had been unprofitable.
It is understood the Daily Mail had become frustrated with the representation it was getting from Nine, with publisher Peter Holder describing the split as “a little bit of a blip”, adding “the road to success is always under construction”.
DMGT reported underlying revenue was down 1%, while reported revenue was up 3% from £922m in the first half of 2015 to £950m in the first half of this year.
The operating profit of £138m was down 12% on the previous half year on underlying business, with profit impacted by a weak print advertising market.
In the six months ended March 21, print advertising revenues declined by £18m however digital advertising revenues grew strongly by an underlying 23%.
Circulation revenues were down by 3% due to the continued decline in sales for the Daily Mail and the Mail on Sunday.
Martin Morgan, chief executive, DMGT said in a statement: “DMGT’s performance in the first half was broadly in line with our expectations, other than the further deterioration in the UK print advertising market which impacted DMG Media’s results. The Group’s revenue has remained broadly stable on an underlying basis, with growth from our B2B companies offsetting the decline from DMG Media.”
Miranda Ward worked for Mumbrella from 2013 to 2017, eventually becoming deputy editor. Miranda joined Mumbrella in September 2013 from Sky News.
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