Shares in the Daily Mail and General Trust (DMGT) were marked up strongly on release of its half-year numbers to March 2019, which boasted improved guidance for its consumer media business.
On an adjusted underlying basis, pre-tax profits rose 19 per cent to £100m. Within consumer media, underlying revenues edged up 1 per cent to £343m and adjusted operating profits climbed 13 per cent to £39m, against a “favourable” advertising backdrop. It follows that now, management reckons the full-year underlying rate of revenue decline for the division will be in the “low single digits” – having previously anticipated a “mid single digits” contraction.
Elsewhere, the group’s business-to-business division saw a 2 per cent increase in underlying revenues, reaching £381m – buoyed by ‘EdTech’ and events. By contrast, DMGT’s reported figures weren’t exactly inspiring – though, in fairness, statutory numbers in the comparative period were flattered by disposal proceeds. This time around, earnings were constricted by impairment charges tied to Euromoney (ERM) and On-geo, on accounting changes relating to non-current assets held for sale and discontinued operations. To the former entity, DMGT revealed earlier this year that it would distribute its 49 per cent stake in Euromoney to shareholders, along with a £200m special dividend, while management reckons its sale of Germany-based On-geo will complete in June.
Broker Numis expects adjusted EPS of 37p for the year to September 2019, against 41.7p in FY2018.
| DAILY MAIL AND GENERAL TRUST (DMGT) | ||||
| ORD PRICE: | 737p | MARKET VALUE: | £ 1.55bn | |
| TOUCH: | 736-739p | 12-MONTH HIGH: | 762p | LOW: 542p |
| DIVIDEND YIELD: | 3.2% | PE RATIO: | 4 | |
| NET ASSET VALUE: | 355p* | NET CASH**: | £172m | |
| Half-year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2018 | 746 | 113 | 32.2 | 7.1 |
| 2019 | 724 | 50.4 | 12.9 | 7.3 |
| % change | -3 | -56 | -60 | +3 |
| Ex-div: | 06 Jun | |||
| Payment: | 28 Jun | |||
*Includes intangible assets of £417m, or 198p a share **In March 2019, shareholder approval was given for a £200m special dividend and making £117m available to the group's pension schemes. Adjusting for a £317m reduction in cash, net debt would have been £146m. | ||||
