DMGT has reported first-quarter revenues of £500 million, growth of 5% on the same period last year, or 1% on an underlying basis.
In its Trading Update released today, DMGT reports underlying revenue growth of 2% from its B2B businesses and an underlying revenue decline of 2% from its consumer media business, dmg media.
In the first quarter, DMGT continued active portfolio management, with dmg information acquiring two bolt-on businesses to existing companies. ETSOS, a UK-based provider of conveyancing searches which complements both Landmark and SearchFlow, was acquired in October. In December, Hobsons acquired PAR Framework, a provider of predictive models that improve student retention and graduation rates in US higher education institutions.
In November, dmg media disposed of its online discount business, Wowcher, to a newly formed business in which DMGT owns a c.30% stake.
Also, earlier in November, DMGT sold its 39% stake in Local World to Trinity Mirror.
On 13 January 2016, DMGT announced that Martin Morgan, chief executive, had informed the Board that he plans to retire from the Group at the end of calendar year 2016.
First-quarter trading is in line with expectations and the outlook for the full year remains unchanged.
PERFORMANCE BY BUSINESS
Reported revenues at Risk Management Solutions increased by an underlying 2% to £47 million. The development of RMS(one) remains on track, with applications for exposure analytics and risk modelling scheduled to be released in stages. The expectation of full year underlying revenue growth is in the low-single digits.
Revenues at dmg information grew to £112 million with underlying growth of 6%. Reported revenues benefited from acquisitions and the stronger US dollar. Genscape continued to deliver double digit underlying growth. The property information portfolio delivered mid-single digit underlying growth whilst Hobsons’ revenues were stable on an underlying basis.
Growth rates in both the property and education sectors are expected to increase over the remainder of the year and the full year outlook for dmg information remains around 10%.
International exhibitions business dmg events delivered strong underlying growth of 8%. Gastech’s revenues were in line with the previous event whereas The Big 5 Dubai and ADIPEC increased both revenues and attendance. The underlying revenue growth for the full year is still expected to be in the mid-single digits.
Euromoney Institutional Investor reported revenues declined to £90 million, an underlying decline of 6%. Euromoney released its first quarter trading update earlier today and will be providing a strategy update at its Capital Markets Day on 9 March 2016.
Consumer media business dmg media reported revenues of £188 million, an underlying decline of 2%. Circulation revenues were down 4% due to declining volumes, although both Mail Newspaper titles continued to grow market share.
Total underlying advertising revenues declined by 2%, with a 12% decline in print advertising being largely offset by 32% growth in digital advertising.
The cover price of the Monday to Friday issues of the Daily Mail will increase from 60 pence to 65 pence with effect from Monday 1 February 2016. This is the first increase for three years.
