DMGT’s operating profit tanks 44% in nine months

Daily Mail and General Trust (LON: DMGT) said on Thursday that its operating profit came in 44% lower in the nine-month period as the Coronavirus pandemic that has so far infected a little under 300,000 people in the United Kingdom and caused over 45,500 deaths offset the growth that it had recorded in the first 5 months.

Shares of the company opened about 5% up on Thursday but dropped roughly 1.5% on market open. At 653 pence per share, Daily Mail and General Trust is more than 20% down year to date in the stock market after recovering from a low of 557 pence per share in March. The company that manages a multinational portfolio of companies has a market capitalisation of £1.37 billion and a price to earnings ratio of 6.55.

DMGT’s advertising and circulation revenue takes a hit

In June, however, the company highlighted, its website and newspapers had recovered back into the profit zone. The company attributed its dovish performance in the nine months to a sharp decline in revenue from advertising and circulation. DMGT had previously registered a 33% decline in H1 revenue from its consumer media business in May.

The Daily Mail newspaper publisher recorded £63 million of operating profit on an adjusted basis in the nine months that ended in June. In terms of revenue, the company printed £934 million on Thursday that represents a 7% year over year decline in the same period last year.

Its circulation revenue, DMGT added, was down 12% in the third quarter. Advertising revenue, on the other hand, came in 12% lower for the nine months while a massive 45% slump was noted in Q3.  

DMGT reports £2 million of underlying operating losses in Q3

The London-based company’s third quarter concluded on 30^th June and saw £2 million of underlying operating losses that marks a significant decline versus the year-ago figure of £22 million of profits.

The British media company refrained from giving its financial guidance for the full year on Thursday citing the rising Coronavirus uncertainty. DMGT, however, expressed confidence in its consumer media unit that it said was profitable in June as it announced its adjusted operating margin at roughly 5% in the month.

In a bid to shore up finances amidst COVID-19, Daily Mail had resorted to slashing salaries in April. As of the end of Q3, however, it has now ended this scheme.