Media group Daily Mail and General Trust has offered some hope that the advertising slump may have bottomed out despite continued weak trading.
The firm saw smaller advertising revenue falls at Associated Newspapers – which owns the Daily Mail and the Mail on Sunday – between April and June than during the previous quarter.
At its regional Northcliffe business, UK advertising revenues were 33 per cent lower than a year earlier, compared with a 36 per cent year-on-year decline registered in the first three months of 2009.
But the firm also struck a note of caution, describing July’s Associated revenues as “disappointing” and adding there was “little visibility” on future performance.
The group’s overall revenues for the third quarter were down 13 per cent on last year at £520 million. Its business-to-business division fared better – registering only a 3 per cent revenue decline – although results were helped by currency effects from a stronger dollar.
DMGT has made swingeing cost cuts this year to boost profits by £150 million and also reduced its debt burden by £85 million to £1.14 billion. The group also said last week that its loss-making Teletext news and information service is to come to an end in January next year.