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Thursday 25 November, 2010

Daily Mail & General

Final Results - Part 1


Daily Mail and General Trust plc (`DMGT')

Group unaudited preliminary results for the year ended 3rd October, 2010.

                     Adjusted results*               Statutory results~  
                                                                         
                       2010       2009      Change     2010       2009   
                                                                         
                               (restated)+                     (restated)
                                                                   +     
                                                                         
Revenue               £1,984 m    £2,118 m     -6 %   £1,968 m   £2,062 m
                                                                         
Operating profit /      £320 m      £273 m     +17%     £228 m   £(161) m
(loss)                                                                   
                                                                         
Profit/(loss)           £247 m      £201 m     +23%     £146 m   £(301) m
before tax                                                               
                                                                         
Earnings/(loss) per      50.0p      37.2 p     +34%     52.1 p   (79.8) p
share                                                                    
                                                                         
Dividend per share      16.0 p      14.7 p      +9%                      

*(before exceptional items and amortisation and impairment of intangible
assets; see Consolidated Income Statement and reconciliation in Note 9).

+ restated for the change of presentation of IAS 19 pension financing items
from operating profit to net finance costs; see Note 1.

~ These statutory highlights are for continuing operations only (excluding DMG
Radio up to 16th December, 2009), other than for earnings / (loss) per share
which is the total statutory figure.

STRONG INCREASE IN PROFITS, CONTINUED INVESTMENT AND SIGNIFICANT REDUCTION IN
DEBT

  * Group underlying# operating profit* up c10%;
   
  * Strong B2B underlying# profit* growth of 15%;
   
  * Sharp rebound in UK consumer media profits*, up 46%, through growth in
    national advertising and cost containment;
   
  * Net debt to EBITDA ratio of 2.3 times, with net debt down £187m to £862m;
   
  * Dividend increased by 9%.
   
Martin Morgan, Chief Executive, said

"Trading exceeded our expectations throughout the year. Our international
business-to-business companies have delivered excellent profit* growth,
demonstrating strength across the portfolio. Our UK consumer businesses have
achieved a sharp improvement in profitability* reflecting the actions taken to
reduce costs and to eliminate loss-making activities, and growth in our
national advertising.

These results are a testament to our success in meeting our objectives of
maintaining a tight focus on execution whilst driving organic growth and
innovation across the Group. Although we remain cautious about the medium term
outlook, particularly given continuing economic uncertainties, we are well
placed to continue investing in our businesses to strengthen their market
positions and to take advantage of improving conditions as they materialise.

DMGT has always been a first mover in the media and information industry. We
recognise that our future is largely digital, whether it be in the consumer or
the B2B markets. Our performance reflects the significant progress made in our
digital and online products and we look forward to another year of growth and
development in these areas. Our established strategy of creating a leaner, more
focused Group with a diversified international portfolio of market-leading
businesses leaves us well positioned for 2011 and beyond."

A live webcast of the presentation of the Preliminary Results to City analysts
will be available for viewing from 9.30 a.m. on 25th November, 2010 at http://
www.dmgt.co.uk.

Enquiries

Peter Williams, Finance Director Tel: 020 7938 6631

Nicholas Jennings, Company Secretary Tel: 020 7938 6625

Andrew Honnor/ Anastasia Shiach, Tulchan Communications Tel: 020 7353 4200

Notes to Editors

DMGT is a multi media and information company providing essential news,
entertainment and information services on both business to business (B2B) and
consumer platforms. We operate in many different markets, in over 40 countries
providing high-quality content, information, analytics and events.

Our B2B arm comprises Risk Management Solutions (RMS), dmg information (dmgi),
dmg events and Euromoney Institutional Investor. Our consumer media division, A
&N Media, comprises Mail Newspapers, our free newspaper division, principally
Metro, our central European operations, our digital only businesses and
Northcliffe Media. We also own 50% of dmg radio Australia, a 50:50 joint
venture with an Australian company called Illyria, established in December
2009.

Our strategy is to remain the owner of high-quality, sustainable,
market-leading media and information assets across both the B2B and consumer
sectors and to become a truly global growth company with sustainable earnings
and dividend growth.

Daily Mail and General Trust plc

Contents

Management report

Condensed Consolidated Income Statement

Condensed Consolidated Statement of Comprehensive Income

Condensed Consolidated Statement of Changes in Equity

Condensed Consolidated Balance Sheet

Condensed Consolidated Cash Flow Statement

Notes to the Condensed Consolidated Financial Statements

Management report

This management report focuses principally on the adjusted results to give a
more comparable indication of the Group's underlying business performance. A
discussion of restructuring and impairment charges and other items included in
the statutory results is given after the divisional performance review and is
set out in the segmental note. In the statutory results, the Group's radio
division is shown within discontinued operations for the period to 16th
December 2009. The adjusted results are summarised below:

Adjusted results*                       2010             2009     Change†
                                                                         
                                          £m      (restated)+            
                                                                         
                                                           £m            
                                                                         
Revenue                                1,984            2,118         -6%
                                                                         
Operating profit                         320              273        +17%
                                                                         
Income from joint ventures                 2              (1)            
and associates                                                           
                                                                         
Net finance costs                       (75)             (71)         -5%
                                                                         
Profit before tax                        247              201        +23%
                                                                         
Tax charge                              (34)             (44)        +24%
                                                                         
Minority interest                       (22)             (16)        -35%
                                                                         
Group profit                             191              141        +36%
                                                                         
Adjusted earnings per share           50.0 p           37.2 p        +34%

*Adjusted results are stated before amortisation and impairment of intangible
assets and exceptional items. For a reconciliation of Group profit to adjusted
Group profit, see Note 9. These adjusted results are for total operations,
including those treated as discontinued.

#Underlying revenue or profit* is revenue or profit* on a like for like basis,
adjusted for acquisitions and disposals made in the current and prior year and
at constant exchange rates. For A&N Media, the underlying percentage movements
compare 52 weeks with 52 weeks and exclude the Evening Standard, London Lite,
the discontinued television activities of Teletext, the digital dating and data
businesses and the Slovakian print publishing companies.

+ Operating profit* and net finance costs for the prior period have been
restated for the transfer of the IAS 19 pensions financing credit of £5 million
from corporate costs into net finance costs; see Note 1.

† Percentages are calculated on actual numbers to one decimal place.

Summary

  * Group performance: Group revenue for the year was £1,984 million compared
    with £2,118 million for the prior year, representing a fall of 6% but an
    underlying# increase of 2%. Operating profit* was up 17% on the equivalent
    figure for the prior year at £320 million, an underlying# increase of
    approximately 10%. This increase was due to margin improvements across our
    portfolio, but particularly in our consumer businesses. Overall operating
    margin* rose from 13% to 16%.
   
The Group's B2B companies increased their overall profit* by 12%, an underlying
# increase of 15%. Within consumer media, the profits* of A&N Media were
significantly higher, up 46%, due to cost efficiencies, the elimination of
loss-making activities and national advertising revenue growth. As a
consequence, 66% of this year's operating profit* was generated from the
Group's B2B operations and 34% from consumer, compared to 71% and 29% last
year. More than half of the Group's operating profits* were again derived from
outside the UK.

Adjusted profit* before tax rose by 23% to £247 million. The statutory profit
before tax for the year was £146 million, after charging £58 million of
amortisation charges and impairment losses and £39 million of net exceptional
charges.

  * Net debt and financing: net debt fell by £187 million to £862 million as
    the Group focused on debt reduction. At the year end, only £3 million of
    short term bank loans remained outstanding, with most debt in the form of
    long-term Eurobonds. The Group's ratio of year end net debt to EBITDA was
    2.3 times, comfortably within the Group's target range of 2.0 to 2.5 times.
   
Outlook

Group

  * Board cautiously optimistic of achieving another year of underlying growth.
   
  * Most of our businesses performing well in new financial year; continuing
    economic uncertainty in the medium term.
   
  * Focus to remain on cash generation and debt reduction; objective to recover
    investment grade credit rating.
   
  * Continued drive for sustainable organic growth through new product
    development and investments; equal focus on maintaining a firm control on
    costs.
   
  * RMS: showing good start to year with a number of contracts booked and a
    solid sales pipeline; expecting to achieve low double digit growth again
    this year.
   
  * dmgi: combination of continuing investment in core growth initiatives and
    improving market conditions will drive a modest acceleration of revenue and
    profits*growth.
   
  * dmg events: recent attendance and bookings trends moderately encouraging
    with continued improvement anticipated in 2011. Forthcoming year will
    benefit from two of our three major biennial shows taking place, (Adipec in
    November 2010 and Gastech in March 2011).
   
  * Euromoney: expects good second half revenue performance to continue into
    the first quarter. Furthermore, growth in subscriptions, which account for
    nearly 50% of its revenues, provides support for further growth in 2011.
    However, broader outlook for global economic growth remains challenging so
    outlook beyond December uncertain. Level of spending on technology and new
    product investment to increase further which, in the short-term, may reduce
    operating margins*.
   
  * Associated: advertising revenue in the first seven weeks of the new year up
    9% on last year, continuing recovery seen since January; very difficult to
    predict future revenue trends and, as expected, newspaper operations facing
    upward pressure on newsprint prices; continuing strong growth in Mail
    Online readers.
   
  * Northcliffe: facing another tough year; UK advertising revenue in the first
    seven weeks down 7% on last year, continuing year-on-year trend experienced
    in September (like-for-like decline of 8%). Outlook for first quarter not
    expected to improve on this trend; will also be affected by higher
    newsprint costs; focus remains on reducing costs and new revenue
    opportunities.
   
Divisional Review

Risk Management Solutions

                                 2010              2009           Movement
                                                                          
                                   £m                £m                  %
                                                                          
Revenue                           153               137               +12%
                                                                          
Operating profit*                  47                42               +12%
                                                                          
Operating margin*                 31%               31%                   

RMS rebounded from the more difficult trading conditions of 2009 to achieve
strong revenue and operating profit* growth of 12%, whilst maintaining profit*
margins at 31% and continuing its investments in the Next Generation platform
and other growth initiatives in the Data and Life & Health markets.

RMS achieved a balanced performance across its various business units. While
nearly 75% of new sales were once again achieved in the core modelling
business, more than 25% of new sales came in its newer initiatives such as
Emerging Risk Solutions, Capital Markets, and Data Solutions.

Operating achievements for the year included the release of RiskLink version
10.0 and the launch of the first of RMS's Next Generation platform
capabilities, in the form of Enterprise Grid Computing (EGC). There was
continued sales momentum for growth initiatives such as RMS's Data Quality
Analytics, ('Miu') software for managing portfolios of catastrophe (`cat')
bonds, and the successful completion of the first excess mortality cat bond in
the Life & Health market. RMS took advantage of the strong rebound in capital
market conditions to execute 15 cat bond deals this year and maintained its
leading market position.

The strength of RMS's business model has preserved margins whilst maintaining a
strong investment programme in initiatives designed to generate future growth.
RMS continues to develop products and services to fulfil demand for catastrophe
models, expand along the `decision sciences' value chain and devise solutions
in adjacent insurance market segments, such as in Life and Health.

dmg::information

                                 2010              2009           Movement
                                                                          
                                   £m                £m                  %
                                                                          
Revenue                           231               230                 0%
                                                                          
Operating profit*                  53                46               +14%
                                                                          
Operating margin*                 23%               20%                   

In a year that saw a fragile recovery in some markets, reported revenue was up
£1 million at £231 million. Underlying# revenues grew by 4%, with strong
performances in the property, financial, energy and education sectors which in
aggregate grew by 8%. This was in part mitigated by a decline in geo-spatial
revenues.

dmgi achieved another year of record operating profit*, with underlying# growth
of 16%. Margins improved by 3% to 23% as a consequence of good expense control.

Property Information

Operating profit* from the property information companies increased by 20% to £
20 million, with revenues up 10% at £83 million. Underlying revenues and
operating profits* grew by 10% and 28% respectively due to strong product
performance and a slight improvement in residential and commercial property
activity.

In the U.S., Environmental Data Resources (`EDR`), benefited from a slight
improvement in commercial property transactions enhancing revenue and this,
together with the full effect of cost saving initiatives made in 2009, led to a
significant improvement in operating profit*. EDR continues to enhance its
position in the lender market and also introduced a property monitoring product
during the year.

Landmark Information Group increased its revenues and underlying# operating
profits despite the continuing difficulties in the UK housing market. We saw
some improvement in the early part of the year, enhanced by the stamp duty
holiday that expired on 31st December, 2009, but, throughout the remainder of
the year, housing transaction volumes remained similar to the prior year
levels, hovering around half of the long-term average.

Other markets

64% of dmgi's revenue was generated by companies operating in the financial,
education, energy and geospatial markets. In total, revenue was up 2% at £148
million and operating profits* up 11% at £36 million. The underlying# revenue
and operating profits* were higher by 1% and 9% respectively. Pleasing growth
was experienced in all of our businesses with the exception of Sanborn where
there was a reduction in revenues as a result of the continuation of tough
geospatial market conditions, driven by tight US state and federal budgets.

  * Financial:
   
Trepp again grew its revenue and operating profit* strongly. It successfully
acted as the collateral monitor for Commercial Mortgage-Backed Securities for
the Federal Reserve Bank of New York as part of the US federal governments Term
Asset-Backed Securities Loan Facility (TALF). Trepp also developed its core
CMBS products significantly during the year and started to expand into adjacent
areas.

Lewtan, offering products to both investors and issuers in the Asset-Backed
securities market, also enjoyed a good year with record profits* buoyed by the
successful launch of its ABS Loan product line. A major upgrade of its ABSNet
product is to be launched in early 2011.

  * Education:
   
Hobsons increased underlying revenues by 7% and continues to gain market share.
In the year almost 200 new clients of its core products were added, pushing the
customer base to in excess of a thousand colleges in the US. Naviance, which
provides solutions to US high schools, enjoyed an outstanding year adding 890
additional high schools to its client list, taking the total to 4,370 across
the US.

  * Energy:
   
The energy trading markets have remained turbulent, with customer consolidation
and lower energy price volatility reducing activity. Despite this backdrop,
Genscape was able to increase revenues by 8%. Genscape's product range
continues to expand and of particular note was the success of its new oil
product line.

dmg::events (formerly dmg world media)

                                 2010              2009           Movement
                                                                          
                                   £m                £m                  %
                                                                          
Revenue                           110               175               -37%
                                                                          
Operating profit*                  30                37               -19%
                                                                          
Operating margin*                 27%               21%                   

dmg events' revenue and operating profit* were down 37% and 19% respectively,
due in large part to the divestment of businesses last year and, to a lesser
extent, the late-cycle nature of exhibitions. These results also reflect the
inclusion of one large biennial event in June, the Global Petroleum Show in
Calgary, but the absence of two others, Gastech and ADIPEC.

While underlying# revenue reduced by 9% in the year, the most significant
reductions were experienced early in the year and by the final quarter we were
seeing year-on-year increases. Underlying operating profit* fell by only 7% due
to cost saving initiatives, despite the high operating leverage of exhibitions.
Margins* have significantly improved by 6% to 27% as a consequence of reducing
central costs, simplifying operations and focusing on market leading B2B
events.

During the year, the restructuring of the division was completed, which is now
organised into five operating units, covering Retail, Energy, Leadership
Conferences, Digital Marketing sectors and a regional unit in the Middle East.

The largest show, the bi-annual New York International Gift Fair, had a good
year with the summer show experiencing year-on-year increases in both revenue
and visitor attendance. The other major shows in the year were Big 5, held in
Dubai and serving the region's construction sector, which grew strongly, and
the Global Petroleum Show. These four shows generated 45% of our underlying#
revenue in the year.

Elsewhere in the division we have continued to expand aggressively the
programme of successful sponsorship-driven leadership conferences under the
Evanta brand and now have events for financial and human resource
professionals, in addition to Chief Information Officers initially served.

Euromoney Institutional Investor

                                 2010              2009           Movement
                                                                          
                                   £m                £m                  %
                                                                          
Revenue                           330               318                +4%
                                                                          
Operating profit*                  96                77               +25%
                                                                          
Operating margin*                 29%               24%                   

Euromoney released its preliminary results on 11th November, increasing its
operating profit* by 25% to a record £96 million on revenues up 4% to £330
million. Coming so soon after some of the toughest and most volatile financial
markets in many years, these results underline the success of its strategy to
build a more robust and higher quality information business.

Whilst the results in the first half of the year were driven largely by the
benefit of cost cuts made the year before, the second half brought a return to
revenue growth earlier and faster than expected. This better than expected
revenue performance helped to offset Euromoney's significant investment in new
products and the online migration of its print businesses.

While tight cost management was maintained throughout the year, the strategic
focus has shifted to driving revenue growth, both from existing products as
markets recover, and from investment in technology platforms and new products
as part of the migration to an online information business.

The faster than expected recovery of subscription revenues was the most
encouraging trading sign during the second half. The pick up in subscription
renewal rates began in the summer of 2009, and has been followed by a recovery
in sales of new subscriptions. This reflects a combination of stronger markets,
increased investment in marketing and electronic publishing, as well as many
new customers identified in the aftermath of the credit crisis. Subscriptions
continue to account for nearly 50% of revenues. Most of Euromoney's biggest
subscription businesses have seen revenues and renewal rates return to
pre-credit crisis levels earlier than expected.

Advertising revenues were the first to suffer during the credit crisis, and the
first to recover as global financial institutions became more confident about
the outlook for financial markets. In addition, the financial year closed with
a particularly strong September, the key month of the year for many of
Euromoney's advertising-led businesses.

Revenues from events, which comprise both sponsorship and paying delegates,
experienced the most rapid recovery in 2010. Event revenues were hit hard
during the credit crisis as customers exercised tight controls over training,
event attendance and travel. At the same time Euromoney cut event volumes by
eliminating many of its smaller, low margin events, and continued to invest to
enhance the market leading positions of its annual conferences and meetings.
The majority of its largest events are held in the second half of the financial
year and as markets have recovered, so attendance at these events has returned
rapidly to pre-credit crisis levels or better.

Emerging markets, which account for more than a third of revenue, continued to
hold up reasonably well, with Asia and Latin America providing the main sources
of growth.

After a strong recovery and return to revenue growth in 2010, Euromoney will
continue to pursue its successful strategy in 2011, with an emphasis on
investing in technology and new subscription-based electronic information
services, supplemented with small strategic acquisitions.

Consumer media

Revenues from the Group's consumer operations for the year totalled £1,160
million, an underlying# increase of 1%, though 8% lower on a reported basis,
reflecting various portfolio changes and one less week's trading. Higher
national advertising revenues, together with A&N Media's focus on cost control,
led to an increase in its operating profits* of £39 million (46%) to £125
million. A&N Media's margins* rose from 7% to 11%.

The results of Associated and Northcliffe included one fewer week's trading, as
the prior year was a 53 week year, but all underlying# year on year comparisons
are on a like-for-like basis, comparing 52 weeks with 52 weeks and exclude
discontinued operations.

Management of our Central European operations now report directly to Associated
and its results will be reported there, rather than within Northcliffe, with
effect from 4th October, 2010.

Associated Newspapers

                                 2010              2009           Movement
                                                                          
                                   £m                £m                  %
                                                                          
Revenue                           850               876                -3%
                                                                          
Operating profit*                  95                62               +54%
                                                                          
Operating margin*                 11%                7%                   

The results include losses* made by London Lite and the discontinued television
activities of Teletext prior to their closure.

Associated's results benefited from higher advertising revenues, further
operating efficiencies and from the actions taken to eliminate loss-making
activities. This resulted in a significant improvement in operating profit* up
by £33 million to £95 million with operating margins* growing by 4% to 11%.

Total revenues were down £26 million mainly due to the impact of closed or sold
businesses and the extra week's revenue in last year. Underlying revenues were
up 5% or £39 million with improved revenues in display advertising, digital and
developing revenue streams offsetting decreases in circulation and classified
advertising. Total underlying# advertising revenues rose by 6% to £442 million.

Newspaper operations

Underlying# circulation revenues fell by 2% to £351 million. Whilst circulation
of the Daily Mail fell by 2% and that of The Mail on Sunday by 4%, both titles
increased their market share to respective new highs of 21% and 19%.

Underlying# advertising revenues were up 7% at £347 million, driven by a strong
performance from Metro in particular. Underlying# display advertising was up 7%
to £283 million. Retail, our largest category, performed particularly strongly,
up 14%, but there was good growth from most other categories. Underlying#
classified advertising fell by just 1% to £52 million. Underlying# digital
revenue from the newspaper titles' companion sites increased by 54% to £12
million due to the growing success of its primary website, Mail Online, where
traffic increased year on year by more than 70% to 47 million unique users in
September.

Both the Daily Mail and Metro recorded their highest ever operating profit*.

Digital only businesses (formerly Associated Northcliffe Digital: `AND')

Revenue across the portfolio of digital companies, focused on the verticals of
Jobs, Property, Motors and Travel rose by 1% to £95 million with particularly
strong growth from the Digital Property Group (TDPG).

In total, the digital only businesses grew profit* by £5 million to £6 million
and improved their margin. This was due mainly to lower marketing costs at
Jobsite compared to the first half of last year, when a significant
brand-building campaign took place. During the final quarter, AND's central
functions were integrated with A&N Media producing significant cost savings.

During the year we have disposed of the dating and data businesses as well as
acquiring Globrix for TDPG. In addition, we continue to invest across all our
verticals, in their products and marketing and supporting international
expansion of Jobsite.

Northcliffe Media

                                 2010              2009           Movement
                                                                          
                                   £m                £m                  %
                                                                          
Revenue                           294               328               -10%
                                                                          
Operating profit*                  30                24               +24%
                                                                          
Operating margin*                 10%                7%                   

UK

In a continued weak advertising market, Northcliffe increased its UK operating
profits* by £6.7 million (34%) to £26.5 million. Underlying# revenues were down
£16 million or 6% and reported revenues by 8% to £262 million, with advertising
revenues down by 7% to £186 million. Within this, digital advertising revenues
of £17 million grew by an underlying# 13%. The company continued its programme
of restructuring and process innovation and delivered year-on-year underlying
cost savings of £26 million.

By category, recruitment revenues declined by an underlying# 19%. Although the
increase in unemployment levels showed some early signs of slowing, recent
Budget cut announcements have, as expected, had a heavy impact on our private
and public sector recruitment spend. In the property category, revenues grew by
5% with year-on-year growth recorded each month since quarter two. Residential
advertising has been robust despite recent market intelligence indicating a
reduction in the level of mortgage approvals. Motors advertising was down just
3%, benefiting from a strong digital performance. Retail advertising,
Northcliffe's largest category this year, fell by 4% in the full year and in
the final quarter. All other categories combined contracted by 8%.

Newspaper circulation revenues fell on an underlying# basis by 6% or £4
million. Modest cover price increases were implemented in the year on specific
titles. For the January to June 2010 ABC period, circulation of our dailies was
down 7.7% compared with an industry average of 6.7%. The weekly titles recorded
a fall of 4.4%, a result which outperformed the industry average by 1.5
percentage points.

Despite the fall in revenues, Northcliffe has continued to innovate to improve
the quality and quantity of its newspaper content. Furthermore LocalPeople, a
hyperlocal initiative, launched by A&N Media in the prior year was transferred
into the Northcliffe portfolio at the year end. Aimed at communities of up to
60,000 people where there is a strong independent retail presence, its
portfolio of websites reached 120 by September.

Northcliffe has continued to innovate and change processes to drive down
operational costs which have been reduced by £26 million or 10%. Staff costs
fell by an underlying# £14 million as headcount was reduced by 242 or 7% since
September 2009. Greater efficiency has been delivered across all departments.

Central Europe

A&N International's operating profits* of £3.3 million were down £0.6 million
on revenues down 24% to £33 million. Trading conditions continued to be
challenging and underlying# revenues were down 7% with print and digital
advertising revenues respectively 30% and 12% lower. The year-on-year decline
in print revenues slowed towards the end of the year. The performance of
digital revenues has improved significantly and unique visitor engagement with
all of our digital businesses continues to grow. Two loss making print
publishing companies in Slovakia were disposed of in February. Headcount has
been reduced and significant cost savings were made.

Other income statement items

  * Net finance costs
   
                                 2010               2009           Movement
                                                                           
                                   £m         (restated)                  %
                                                                           
                                                      £m                   
                                                                           
Net interest                     (73)               (76)                +4%
payable and similar                                                        
charges                                                                    
                                                                           
Pension finance                   (2)         5                           %
item                                                                       
                                                                           
Total                            (75)               (71)                -5%

Net interest payable and similar charges (including deemed finance charges and
interest receivable) fell by £3 million to £73 million due to lower average
debt.

As reported at the half year, the IAS 19 pension net financing charge has been
reported within net finance costs, rather than within Group operations as in
previous reporting periods. The prior year comparative has been restated. The
pension financing item increased by £7 million due to the movement in the
pension fund deficit and the discount rate used.

  * Other items
   
The Group's share of the results* of its joint ventures and associates improved
by £3 million to £2 million. It includes income, net of interest costs, from
DMG Radio Australia (DMGRA) since it became a 50% joint venture on 16th
December 2009. This was offset by our share of the losses of Mail Today in
India. The results of DMGRA have been reported in our statutory accounts as
discontinued operations up to 16th December, 2009, as required by IFRS 5, but
we have reinstated them in arriving at adjusted numbers.

The Group has charged £39 million as exceptional operating costs. This charge
comprised impairment of property, plant and equipment of £26 million and
reorganisation costs of £13 million principally within A&N Media.

The charge for amortisation of intangible assets fell by £22 million to £75
million due mainly to the disposal of 50% of DMGRA. The Group also made a net
impairment credit of £20 million, being a write back of impairments made in dmg
events (£27 million), offset by charges totalling £10 million.

The Group recorded other net gains of £0.1 million, compared to net losses of £
24 million last year. Profit attributable to operations treated as
discontinued, principally 50% of DMGRA, amounted to £33 million.

  * Taxation
   
After excluding the effect of exceptional and other items that are not expected
to recur, the underlying tax rate fell from 22.1% to 13.7%. The continued low
rate reflects tax reductions from tax-efficient financing and tax deductible
amortisation in the US that are expected to recur.

There were net exceptional credits of £72 million, including the write back of
provisions arising from the agreement of certain prior year open issues with
tax authorities (£46 million) and the tax credit on recognition of UK tax
losses (£30 million).

Pensions

The Group's defined benefit pension schemes provide retirement benefits for UK
staff, largely in A&N Media. The deficit in these schemes fell from £430
million at the beginning of the year to £271 million at 3rd October, 2010
(calculated in accordance with IAS 19). This improvement is due to an increase
in the market value of the schemes' assets coupled with a reduction in the
value of liabilities arising from changes in the schemes' membership, and
despite a further fall in the corporate bond yield used to discount those
liabilities.

The Company is continuing its funding discussions with the trustees as part of
the process associated with the triennial actuarial valuation of the main
schemes as at 31st March, 2010. This valuation and the associated funding
agreement are expected to be completed by June 2011, within the statutory
period.

Net debt and cash flow

Net debt has fallen by £187 million during the year from £1,049 million to £862
million and by £156 million since the half year. At the year end, only £3
million of short term bank loans remained outstanding, with most debt in the
form of long-term Eurobonds. The Group generated trading cash flow of £339
million and disposal proceeds of £81 million. These funded acquisitions of £40
million, capital expenditure of £52 million, taxation of £9 million, interest
of £68 million and dividends totalling £64 million.

Acquisitions were largely pre-contracted earn-out payments and other deferred
consideration. Disposals were of properties and businesses, principally the
sale of 50% of DMG Radio in December 2009.

Most of the Group's debt remains in long-term bonds, the earliest of which,
totalling £157 million, is not repayable until 2013. At the year end, the Group
had £853 million of Bonds due for repayment in 2013, 2018, 2021 and 2027. It
also had £180 million of committed banking facilities available until September
2011 and £240 million until September 2013. Consequently, the Group has
sufficient committed debt facilities to meet its foreseeable requirements. It
had surplus committed facilities of £355 million at the year end.

The Group's ratio of year end net debt to adjusted profits* before interest,
depreciation and amortisation (EBITDA) was 2.3 times, within the Group's target
range of 2.0 to 2.5 times and comfortably within the requirements of the
Group's bank covenants. During the year, the Group continued to act to increase
profitability and reduce cash outflows, in particular by reducing acquisition
activity. As a result, it achieved its short-term aim of returning the ratio of
net debt to EBITDA to less than 2.5 one year ahead of expectations. The Group's
corporate credit ratings are BBB- from Fitch, and BB+ from Standard & Poor's.

Other financing

The Group utilised 2,942,161 `A' Ordinary Non-Voting shares out of treasury in
order to meet obligations to provide shares under various incentive plans
valued at £10 million. It also acquired 2,862,747 such shares in treasury for £
7.9 million. Following these transfers, DMGT has 383.0 million shares in issue
(excluding shares held in treasury).

DMGT took its share of dividends from Euromoney in the form of a scrip. This
enabled it to offset the dilutive effect of the vesting of the final tranche of
Euromoney's CAP, thereby maintaining its equity interest at 66%. It is the
Board's intention also to take Euromoney's forthcoming final dividend in the
form of a scrip.

Dividend

The Board is recommending payment on the issued Ordinary and 'A' Ordinary
Non-Voting shares of the Company of a final dividend of 11.0 pence per share
for the year ended 3rd October, 2010 (2009 9.9 pence). This will make a total
for the year of 16.0 pence (2009 14.7 pence per share). The final dividend will
be paid on 11th February 2011 to shareholders on the register at close of
business on 3rd December 2010.

Planned restatement of adjusted profit and adjusted earnings per share

The Group has decided to alter the presentation of its adjusted results* from
2010/11 so as to include the charge for amortisation of software and internally
generated intangible assets. Under IFRS, software is included within intangible
fixed assets which are amortised over their useful lives. The level of software
amortisation has grown steadily since our adoption of IFRS in 2006. Henceforth,
the Group will add back only the amortisation of intangible assets acquired in
a business combination in arriving at its adjusted numbers. This change will
bring it into line with the practice of the majority of other companies.

The restatement will reduce the adjusted profit* and adjusted earnings per
share numbers reported for the year ended 3rd October, 2010 by the software
amortisation charge of £16.5 million to £230 million and 3.7 pence to 46.3
pence respectively. This charge arose within Associated Newspapers (£8.6
million), dmg information (£5.5 million), RMS (£2.0 million) and Euromoney (£
0.2 million). There is no impact on our statutory figures.

Principal risks and uncertainties

The principal risks and uncertainties the Group faces vary across the different
businesses and are the focus of the Risk Committee. These risks are identified
in the DMGT Group Risk Register. The materiality of each risk is assessed
against a framework to determine its significance and likelihood of occurrence.
The Risk Register is used to determine the agenda and activity of the Risk
Committee. The most material risks identified in the Risk Register, together
with the steps taken to mitigate them, are described below.

The geographic spread and diverse portfolio of businesses within the Group help
to dilute the impact of some of the Group's key risks. Certain of these risks
are interdependent and should not be considered in isolation.

Exposure to changes in the economy and customer spending patterns

A significant (although decreasing) proportion of our revenue is derived from
advertising, largely from the UK newspaper division, A&N Media. This revenue
was heavily affected by the downturn in the global economy in the past two
years although in recent months we have seen some recovery, especially in our
UK national newspaper titles. A similar, although reduced, effect was seen in
our businesses that rely on non-advertising revenues, principally in the
financial and property markets. A 'double dip` recession gives rise to a risk
of not achieving the Group's forecast results. Our experience in the past two
years has demonstrated how our long term strategy of diversifying the Group's
portfolio, into business information and subscription revenue streams, along
with investment in strong brands, which have recovered quickly, puts us in a
robust position both now or if growth slows or falls in the future. Further,
management of costs over the last two years have reduced the Group's cost base.

The impact of technological and market changes on our competitive advantage

Our businesses operate in highly competitive environments that can be subject
to rapid change. Our products and services, and their means of delivery, are
affected by technological innovations, competitor activity and changing
customer behaviour. This has been seen most obviously in our regional
newspapers which have seen revenues, especially in classified advertising,
migrate to online portals.

All of our businesses are alert to market changes or emerging technologies that
could disrupt their products and brands. The autonomous culture of the Group
encourages an entrepreneurial approach to the development of new opportunities
in response to these threats and we continue to invest and adapt to remain
competitive. Our strategy of diversification and willingness to take a
long-term view helps us to react to these challenges and opportunities when
they arise. In particular we have developed an internet strategy for each of
our main segments of advertising revenue and as such our print and online
businesses are working closely together to maximise the synergies that exist
between these two formats.

Pension scheme shortfalls

Although closed to new employees in 2009, we continue to operate defined
benefit pension schemes for our newspaper divisions and certain senior
executives. Reported earnings may be adversely affected by changes in our
pension costs and funding requirements due to lower than expected investment
returns, changes in bond yields and changes in demographics, particularly
longer life expectancy. A funding approach and a revised asset allocation
strategy, designed to reduce and diversify the risk inherent in the investment
portfolios have been agreed and implemented and a risk management working group
has been established to consider all aspects of financial risk and potential
solutions. The schemes remain neutral in cash flow terms and so do not
currently need to sell assets. The next triennial valuation of the schemes, as
at 31st March 2010, will be completed by June 2011.

Impact of a major disaster or outbreak of disease

Any disaster, such as a geopolitical event or outbreak of disease which
significantly affects the wider environment or the infrastructure in an area
where we have material operations, could adversely affect the Group. The
importance of travel to many of our event businesses was highlighted when
during the year the eruption of the Eyjafjallajökull volcano in Iceland
grounded all European and some international air travel. Although business
continuity plans and procedures are in place to mitigate the impact of
`disaster' risks, a terrorist attack, a major fire or pandemic might affect our
ability to deliver products, reduce the demand for them or increase our cost
base.

Reliance on key management and staff retention

We employ successful and talented management and staff across all of our
businesses. Although we cannot predict with certainty that we will enjoy
continued success in our recruitment and retention of high quality management
and creative talent, our Group human resources director works with divisional
and executive management across the Group on a formal approach to talent
management and succession planning. This includes payment of competitive
rewards, employee performance and turnover monitoring and a variety of
approaches to staff communication.

Commercial Relationships including volatility of newsprint

We are reliant on a number of commercial relationships with key suppliers and
third parties. A significant change to the commercial terms under which we
trade, or the loss of any of these key relationships, could have a material
impact on the Group's results. In response to this, significant time and
resources are committed to developing these relationships to ensure they
continue to operate satisfactorily.

An example of this is newsprint which represents a significant proportion of
our costs. Newsprint prices are subject to volatility arising from variations
in supply and demand. The Group's newsprint requirements are managed by a
dedicated newsprint buying team and monitored by the board of Harmsworth
Printing. Where possible, long term arrangements are agreed with suppliers to
limit the potential for volatility.

Acquisition and disposal risk

As well as launching and building new businesses, an integral part of our
success has, and will continue to be, the acquisition of businesses that
complement our existing products or expand the scope of our expertise. A number
of risks are inherent within any strategy to acquire. The majority of
acquisitions are in related markets and are smaller businesses with a high
potential for growth. This reduces the size of the risk of each acquisition to
the Group.

There are risks to our ability to achieve optimal value from disposals
including the incorrect timing of any sale, the inability to identify and agree
a deal with a purchaser, the unsuccessful separation of a business and
management of any related costs, as well as the failure to realise any other
anticipated benefits of a disposal.

Reliance on IT infrastructure

All of our businesses are dependent on technology to some degree, either
through internal systems of software products. Disruption to our information
technology infrastructure or failure to implement new products systems
effectively could result in lost revenue and damage our reputation. Dedicated
project management teams are used to manage the risk in any development or
change project and business continuity plans are in place and are regularly
tested in each division to protect existing systems.

Information security

Information security continues to be an important issue for all businesses
across the Group. Losses of data in the past have highlighted the importance of
information security. Our divisions manage information security risks locally
with the support and oversight from the Risk committee on areas such as policy
training and technology. Any future breach in our data security could have a
harmful impact on our business and reputation.

Legal and regulatory

Our businesses are subject to varying legislation and regulation in the
jurisdictions in which we operate. These typically cover such areas as:
competition; data protection; privacy; health and safety; and employment law.
The recently enacted UK Bribery Act (which comes into force in April 2011) is
notable as having multi-jurisdictional reach i.e. all of our businesses across
the globe are required to comply. It also extends beyond the Group's direct
subsidiaries, covering associates, joint ventures and sales agents.
Additionally we are party to more specific regulations such as from the Office
of Fair Trading and the Audit Bureau of Circulation.

We take compliance with laws and regulations seriously throughout the Group.
Our DMGT code of conduct (and supporting policies) sets appropriate standards
of business behaviour and highlights the key legal and regulatory issues
affecting our businesses. It is available to all staff. Training and further
guidance is provided where necessary. Controls are also in place surrounding
compliance with the Audit Bureau of Circulation regulations and other
regulatory bodies to which we adhere.

Treasury Risk

There are a number of risks arising from the Group's Treasury operations
including currency exchange rate fluctuations impacting on the Group's reported
earnings, liquidity risk, interest rate risk and debt levels. In addition the
treasury function within DMGT undertakes high value transactions and therefore
there is inherently a risk of treasury fraud or error.

Tax risk

Our operations are global and therefore our earnings are subject to taxation at
differing rates across a number of jurisdictions. Whilst we endeavour to manage
our tax affairs in an efficient manner, due to an ever more complex
international tax environment there will always be a level of uncertainty when
provisioning for our tax liabilities. There is also a risk that changing tax
laws would have an adverse effect on our financial results. Working with
divisional management and external experts we have a team of in-house
specialists who review all tax arrangements within the Group and keep abreast
of changing legislation.

The Viscount Rothermere

Chairman

*References to operating profit or loss or share of the results of joint
ventures and associates in the narrative above are to adjusted operating profit
or loss or adjusted share of the results of joint ventures and associates
before amortisation and impairment of intangible assets and exceptional items);
see notes 2 and 3. These adjusted results are for total operations, including
those treated as discontinued.

#Underlying revenue or profit* is revenue or profit* on a like for like basis,
adjusted for acquisitions and disposals made in the current and prior year and
at constant exchange rates. For A&N Media, the underlying percentage movements
compare 52 weeks with 52 weeks and exclude the Evening Standard, London Lite,
the discontinued television activities of Teletext, the digital dating and data
businesses and the Slovakian print publishing companies and for consumer media
as a whole DMG Radio Australia.

+ Operating profit* and net finance costs for the prior year have been restated
for the transfer of an IAS 19 pension finance credit of £5 million from
corporate costs into net finance costs; see Note 1.

The average £: US$ exchange rate for the year was £1: $1.56 (against £1:$1.55
last year). The rate at the year end was $1.63 (2009 $1.59).

For further information

For analyst and institutional enquiries:

Peter Williams, Finance Director 020 7938 6631

Nicholas Jennings, Company Secretary 020 7938 6625

For media enquiries:

Andrew Honnor/ Anastasia Shiach, Tulchan Communications 020 7353 4200

Analysts' presentation and webcast

A presentation of the Preliminary Results will be given to investors and
analysts at 9.30 a.m. on 25th November, 2010 at the offices of JP Morgan, 17th
Floor, 125 London Wall, EC2Y 5AJ. There will also be a live webcast available
on our website: http://www.dmgt.co.uk.

Next trading update

The Group's next scheduled announcement of financial information will be its
first quarter interim management statement on 9th February 2011.

                                       Not for public release until 7am on 25th

                                                                 November, 2010

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