The publisher of the Mail titles sees a 34% increase in operating profit, crediting cost reductions and digital advancements amid slight revenue declines.
DMGT, the UK publisher best known for the Mail titles, has reported a significant increase in operating profit for its consumer media division, crediting strategic cost reductions and an effective digital transition.
For the year ending 30 September 2024, DMGT’s consumer media business achieved an operating profit of £53 million, marking a 34% increase year on year, despite a slight revenue decline of 2% to £613 million. The company’s overall financial performance showcased an 11% rise in total revenue, reaching £1.1 billion.
While print circulation has faced declines, cover price increases have helped offset these losses. Specifically, circulation revenues fell by 2% to £242 million, but print subscriptions have seen growth. DMGT chairman Lord Rothermere, in his report, noted that this trend reflects “the continuing trend amongst readers to subscribe to the titles.”
Digital advertising revenue contributed positively to the overall financial health of the publisher, witnessing a 5% increase to £174 million. This rise counterbalanced the 2% drop in print advertising revenue, which stood at £106 million. Although ad prices faced pressure due to circulation drops, the Metro brand reported revenue growth, thanks to initiatives taken in 2023 to restructure its offering.
The company’s cost reduction programme has been a vital aspect of its profitability, particularly in the print segment, which saw exceptional costs and impairments totalling £93 million. These costs include £36 million attributed to closures of print sites in Essex and Yorkshire, stemming from a merger of print operations with News UK, and £30 million in goodwill impairment.
In addition to consumer media, DMGT’s events and exhibitions business has experienced robust growth, contributing a quarter of the company’s total revenue and achieving a 67% year-on-year revenue rise to £272 million. The increase has been attributed to a recovery in the events sector, particularly the fast-evolving Saudi Arabian market, and the management of events like sections of the upcoming COP28 climate conference.
Geographically, DMGT continues to derive most of its revenue from the UK, accounting for 58% of total income, followed by 16% from the US and 26% from other international markets.
DMGT’s average workforce for 2024 was 4,307 individuals, with significant numbers employed across its consumer media sector – totalling 2,589, which reflects a slight reduction from 2,608 in the previous year. The property information division and events and exhibitions sectors employed 1,110 and 566 individuals, respectively.
Source: Noah Wire Services
- https://pressgazette.co.uk/media_business/digital-advertising-and-cost-cuts-fuel-growing-profits-at-mail-titles/ – This article supports the claim that DMGT’s consumer media division achieved a 34% increase in operating profit to £53 million, despite a slight revenue decline. It also highlights the role of digital advertising and cost cuts in this success.
- https://pressgazette.co.uk/media_business/dmgt-revenue-financial-report-2023/ – This article provides context on DMGT’s financial performance in previous years, noting a decline in consumer media revenue and the importance of the events and exhibitions business in offsetting these losses.
- https://pressgazette.substack.com/p/dmgt-grew-revenue-in-2023-digital – This piece discusses DMGT’s revenue growth in 2023, highlighting the impact of its B2B events division and the challenges faced by consumer media titles due to advertising and circulation declines.
- https://www.noahwire.com – This source is mentioned as the original provider of the information about DMGT’s financial performance and strategic moves, though it does not directly corroborate specific financial figures without access to the full article.
- https://www.pressgazette.co.uk/media_business/dmgt-reports-pre-tax-loss-of-12-6m-despite-revenue-growth/ – This article would likely discuss DMGT’s financial performance in detail, including its pre-tax loss and revenue growth, though it is not directly available in the search results.
- https://www.dmgmedia.co.uk/ – The official DMGT website could provide detailed financial reports and press releases that support the claims about their financial performance and strategic initiatives, though specific reports are not linked here.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
9
Notes:
The narrative references financial results for the year ending 30 September 2024, indicating recent data. However, there is no specific mention of very recent events or updates post-September 2024.
Quotes check
Score:
8
Notes:
There is a quote from DMGT Chairman Lord Rothermere, but it does not appear to be widely available online, suggesting it might be original or not previously reported in other sources.
Source reliability
Score:
8
Notes:
The narrative originates from a reputable news source, but specific details about the source are not provided. Generally, such financial reports are reliable if from established news outlets.
Plausability check
Score:
9
Notes:
The financial figures and strategic moves described are plausible given the context of media companies adapting to digital transitions and cost reductions. The narrative aligns with common trends in the industry.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative appears to be based on recent financial data, lacks widely available quotes, and is plausible within the context of media industry trends. The source reliability is assumed to be high due to the nature of financial reporting.
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