DMGT revealed the “growing success” of its MailOnline website, the online version of the Daily Mail newspaper, has helped its digital revenue increase by 20 per cent to £5.4m.
The digital revenue also covers the websites of The Mail on Sunday and morning freesheet Metro.
Despite the revenue growth in the Associated Newspapers division, DMGT reported a 10 per cent decline in revenue as a group in its financial report for the six months to 4 April. However, although its revenues declined from £1.1bn in 2009 to £974m this year, the group’s pre-tax profits leaped 42 per cent from £77m last year to £110m in 2010.
DMGT’s digital revenue growth in its newspaper operations comes in the face of falling circulation revenue.
Its circulation revenues fell by three per cent to £175m, with the Daily Mail’s circulation falling 1.7 per cent and The Mail on Sunday’s circulation by 3.2 per cent. Nonetheless, the group said that both titles had increased their market share, driven by “sustained” subscription and home delivery initiatives.
Furthermore, a “strong performance” by Metro had helped boost the company’s advertising revenues by one percent to £181m.
“Associated’s results benefited from the impact of the significant cost reductions made in the prior year, together with further cost savings made in the current year and from the actions taken to eliminate loss-making activities,” DMGT said in its report.
DMGT has also decided to focus on growing its Euromoney business, which it plans to do by investing in new technology and new products as part of its migration to an online information business. Although the division experienced an eight percent fall in revenues in the six months to April, Euromoney’s operating profit increased by 22 per cent as a result of cost cuts last year.
Meanwhile, DMGT’s Associated Northcliffe Digital (AND) division revealed a five per cent increase to £41m in its revenues from its portfolio of digital businesses in jobs, property, travel and motors. However, the jobs business was the only one not to have increased its revenues, due to the depressed recruitment market, and the division also disposed of its dating and data businesses in the period.