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Don’t dismiss upside at DMGT

There is value in being one of the nation’s favourite publishers
Don’t dismiss upside at DMGT
  • Potential recovery in the ad market and a smarter, slimmer strategy 
  • DMGT is still vulnerable to cyclical movements in the economy
Tip style
Speculative
Risk rating
High
Timescale
Long Term
Bull points
  • Emerging recovery in advertising market 
  • Strong and fast-growing digital products
  • Slimming down with better focus
  • Cash boost through stake in Cazoo
Bear points
  • Print products still account for most of the revenues in the media business
  • Reliance on ads makes it vulnerable to health of economy 
  • Relatively weak margins compared with digital peers 

Newspapers are risky businesses. Building up a loyal readership is no mean feat while navigating the turbulent world of advertising often spells trouble for companies that are poorly managed. That explains why much of the press is racing towards digital-first, subscription models.

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