Profits drop at DMGT despite robust Daily Mail performance

In 2016, management also made the decision to up the cover price of their various Mail titles, which helped to offset declining circulation volumes. Total Mail business revenue was therefore flat at £293m. Metro revenue also remained robust in the period as increased circulation both in London and from four new franchises offset falling advertising sales.

The biggest disappointment in the group's newspaper business - DMG Media - was Elite Daily where falling reader numbers sent revenue down 35 per cent to £4m. But in April, management confirmed the sale of the title, following on from its divestment in Wowcher and closure of 7 days, the Dubai-based newspaper business.

But DMGT is much more than its papers and elsewhere its performance failed to impress investors. The risk management and property information divisions absorbed heavy investment, which sent underlying operating profit down 17 per cent and 12 per cent respectively. Margins remain weak in the education and energy information business, keeping its operating profit at a measly £1m. Although these challenges were partly offset by MailOnline's move towards profitability, overall group operating profit took an 11 per cent knock to £100m.

More concerning still is new chief financial officer Tim Collier's decision to lower guidance in the information and events businesses. Both are being challenged by low commodities prices, meaning revenue growth is likely to be dampened. However, management doesn't think overall group performance in the full year will be much changed and so broker Numis has retained its pre-tax profit and EPS forecasts for the September year-end at £227m and 52.7p respectively (FY2016: £260m and 56p).