The Daily Mail owner’s advertising revenue has not suffered dramatically after Britain voted to leave the EU.
In an earnings update on Thursday, the Daily Mail & General Trust (DMGT) revealed that group ad revenue fell 7% year-on-year in the two months after the 25 June Brexit vote.
This was an improvement on the 10% decline in advertising turnover in the third quarter, and 9% in the first half of its financial year.
DMGT did say, however, that underlying ad revenue across the business has fallen 10% in the past five weeks.
Broadcasters ITV and Channel 4 were among the media companies predicting that Brexit would cause uncertainty in the ad market. WPP boss Sir Martin Sorrell also said a Leave vote “will result, at least in the short term or mid term, in GDP weakness in the UK.”
The Daily Mail newspaper’s ad turnover dropped £20 million ($26 million), or 13%, in the 11 months to the end of August. This was offset by Mail Online, which grew £13 million ($17 million), or 18%, over the same period.
Daily Mail to spend £50 million on cutting costs.
DMGT — which also owns Euromoney and freesheet Metro — said it is still operating in “challenging market conditions” and has decided to expand its ongoing cost-cutting “reorganisation initiatives.”
The savings plan, which DMGT said would involve job losses, will result in “exceptional operating costs” rising from £15 million ($19.5 million) to £50 million ($65 million) in 2016.
“These initiatives will create a greater strategic focus and enable more effective decision-making across the group, with the aim of generating future benefits and opportunities for long-term growth,” DMGT said.
In a briefing note, analyst Liberum said: “At the group level results are in line with expectations which is encouraging given the tough conditions that some of the businesses are facing.”