The Daily Mail owner's ad performance has not been a post-Brexit disaster zone

Daily MailDaily Mail/TwitterDaily Mail front page on 29 September 2016.

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.”

NOW WATCH: This monster floor cleaner is incredibly satisfying to watch

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.