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Daily Mail & General (DMGT)

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Wednesday 05 February, 2014

Daily Mail & General

Interim Management Statement

RNS Number : 2987Z
Daily Mail & General Trust PLC
05 February 2014
 



5 February 2014

 

Daily Mail and General Trust plc ('DMGT')

 

Interim Management Statement

 

This Interim Management Statement ('IMS') covers the first quarter of DMGT's financial year, the three month period to 31 December 2013. It describes the Group's financial position and performance during the period, updated to the latest practicable date.

 

Trading in line with our expectations; outlook for the year unchanged:

 

·     Revenue for the first quarter of £472 million, underlying# growth of 6% on last year

·     Strong underlying# growth of 10% from our B2B businesses

·     Solid underlying# revenue growth of 2% from dmg media

·     Further B2B acquisitions for dmg information and Euromoney

·     Repurchase of £56 million 10% Bonds 2021 and £50 million 5.75% Bonds 2018

·     Net debt increased by £199 million to £772 million, in line with expectations

·     Outlook for the year unchanged

 

Q1 Revenue Growth v Prior Year

 

Reported

 

Underlying#

Group revenue+

   -6%

 +6%

B2B

 +8%

 +10%

RMS

  +6%

 +7%

dmg information

 +41%

+14%

dmg events

 -22%

+32%

Euromoney

  +3%

  +0%

dmg media~

  -2%

  +2%

 

Business to Business (B2B)

 

·     Risk Management Solutions (RMS):reported revenues were £44 million,with underlying growth of 7%; core business performing well and the new product for exposure and risk management, RMS(one), remains on track for launch in April.

·     dmg information: revenues grew strongly to £90 million with underlying growth of 14%. Reported revenues benefited from acquisitions, notably DIIG at the end of October 2013.  Hobsons (our education business), Genscape (our energy business) and our property information portfolio (which includes Landmark, DIIG, EDR, Xceligent and Buildfax) all delivered double digit underlying growth.

·     dmg events: again delivered strong underlying growth.  Reported revenues decreased to £38 million, due to the absence of the Gastech event which occurred in October 2012 and will be taking place in March 2014.  The Big 5 Dubai and ADIPEC shows took place in November 2013 and ADIPEC's revenues were 95% of the November 2012 event, a particularly strong performance considering the change from a biennial to annual format. Excluding ADIPEC, dmg events' underlying revenue growth was 13%.

·     Euromoney Institutional Investor: increased revenues to £98 million, in line with last year on an underlying basis and consistent with our expectations given the challenging trading conditions. Euromoney released its IMS on 30 January 2014.

 

 

Consumer

 

Revenue Growth v Prior Year ~

Reported

Underlying#

dmg media

 -2%

+2%

     Advertising

+3%

+5%

     Circulation

 -4%

-2%

 

·     dmg media: reported revenues were £201 million, with solid underlying# revenue growth of 2% on last year.  Underlying circulation revenues were down 2%, with volume declines partially offset by the benefit from last February's cover price increase.  The newspapers continued to gain market share*.

 

Total underlying# advertising revenues across dmg media were up 5% in the quarter, with newspapers down 4%, newspaper companion websites (mainly MailOnline) up 50% and other digital advertising up 13%.  Wowcher delivered a particularly strong performance and it now has a substantial database of 4.3 million subscribers.

 

MailOnline's digital advertising revenue growth of £5 million (48%) to £14 million for the quarter exceeded the £1 million decline in print advertising revenues, to £53 million, at the Daily Mail and The Mail on Sunday for the same period.  Underlying# advertising revenues across the Mail businesses as a whole, for print and digital combined, were consequently up 5%.  MailOnline's monthly unique browsers in December stood at 162 million, up 41% on last year, and average daily unique browsers were 9.9 million, an increase of 39% on last year.

 

For the five weeks since 29 December 2013, total underlying# advertising revenues for dmg media are 6% up on last year.

 

 

 

Net debt / financing

Net debt at 31 December 2013 rose from £573 million at 30 September 2013 to £772 million, mostly due to £105 million of acquisition payments and the usual seasonal cash outflows.  In addition there were £23 million of agreed payments into the Group's main Pension Scheme and a £25 million increase in net debt arising from the premium on the repurchase of outstanding bonds. The Company repurchased £56 million 10% Bonds 2021 and £50 million 5.75% Bonds 2018 for £131 million, financed by surplus cash and bank borrowing from existing credit facilities. The premium will be treated as an exceptional finance charge. The transaction will reduce the Group's future interest charges.

 

 

Active Portfolio Management

The acquisition of businesses for the B2B portfolio has continued with dmg information's purchase of DIIG, the UK and Ireland's leading property searches group, primarily delivering residential and commercial property search results to legal professionals.  Euromoney acquired Infrastructure Journal, the provider of online data, intelligence and events for the global infrastructure sector. 

 

The Board of the Zoopla Property Group (ZPG) is exploring various strategic options for ZPG.  As a 52.6% shareholder in ZPG, DMGT is participating in these discussions.

 

 

 

For further information

 

For analyst and institutional enquiries:


 Stephen Daintith, Finance Director

+44 20 3615 2902

 Adam Webster, Head of Management Information

    and Investor Relations

+44 20 3615 2903

For media enquiries:


Kim Fletcher / Charlie Potter, Brunswick Group

+44 20 7404 5959

 

 

Conference call

A conference call will be held with City analysts at 8.00 am on 5 February 2014.  The dial-in number is +44 (0) 1452 580 111; conference code: 41986857.  A replay of the call will be available on DMGT's website at www.dmgt.com.

 

Next trading update

The Group's next scheduled announcement of financial information will be a trading update, provisionally scheduled for 27 March 2014.

 

About DMGT

DMGT is an international business built on entrepreneurship and innovation.  We bring together leading companies and talented people to provide businesses and consumers with high-quality analysis & insight, information, news and entertainment.

 

Notes

 

+ Northcliffe Media, which was disposed of at the end of December 2012, is included in Group reported revenues up to the date of its sale.  Excluding Northcliffe Media, year to date reported revenues were up 4% on last year.

 

# Underlying revenue is revenue on a like for like basis, adjusted for constant exchange rates, disposals, closures,non-annual events occurring in the current and prior year and acquisitions.  For dmg information, underlying growth includes the year on year organic growth from acquisitions.  For dmg events, the comparisons are between events held in the year and the same events held the previous time other than ADIPEC, which became an annual event in November 2013, which is compared to 50% of the revenues of the biennial November 2012 event.  For Euromoney, no adjustments are made for the timing of events and acquisitions are excluded completely.  For dmg media, underlying comparisons exclude contract printing revenue, which ceased last year, and the central and eastern European businesses which were disposed of last year.  Northcliffe Media is excluded from the DMGT Group underlying comparisons. 

 

~ dmg media's results are to Sunday 29 December 2013 and are compared to the same thirteen week period of the prior year.

 

* Daily Mail 22.9%, a record level, compared to 22.2% last year and The Mail on Sunday 21.7% compared to 20.9% last year. Circulation market share figures are calculated using ABC's December 2012 and December 2013 National Newspapers Reports. 

 

This IMS is prepared for and addressed only to the Company's shareholders as a whole and to no other person. The Company, its Directors, employees, agents and advisers accept and assume no liability to any person in respect of this IMS save as would arise under English law.

 

This document and any materials distributed in connection with it may include forward-looking statements, beliefs, opinions or statements concerning risks and uncertainties, including statements with respect to the Group's business, financial condition and results of operations. Those statements and statements which contain the words "anticipate", "believe", "intend", "estimate", "expect" and words of similar meaning, reflect the Group's Directors'beliefs and expectations and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and which may cause results and developments to differ materially from those expressed or implied by those statements and forecasts. No representation is made that any of those statements or forecasts will come to pass or that any forecast results will be achieved. You are cautioned not to place any reliance on such statements or forecasts. Those forward-looking and other statements speak only as at the date of this IMS. The Groupundertakes no obligation to release any update of, or revisions to, any forward-looking statements, opinions (which are subject to change without notice) or any other information or statement contained in this IMS.Furthermore, past performance of the Group cannot be relied on as a guide to future performance. 

 

No statement in this document is intended as a profit forecast or a profit estimate and no statement in this document should be interpreted to mean that earnings per DMGT share for the current or future financial years would necessarily match or exceed the historical published earnings per DMGT share.

 

Nothing in this document is intended to constitute an invitation or inducement to engage in investment activity. This document does not constitute or form part of any offer for sale or subscription of, or any solicitation of any offer to purchase or subscribe for, any securities nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract, commitment or investment decision in relation thereto. This document does not constitute a recommendation regarding any securities.

 

 

 

Daily Mail and General Trust plc

Northcliffe House, 2 Derry Street,

London, W8 5TT

 

www.dmgt.com

Registered in England and Wales No. 184594


This information is provided by RNS
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