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Mail online sales growing or going down?
Kowloon Johnson
Recent news from Paid Content that mail online publisher Associated Northcliffe Digital profit dipped by ý5 million and sales fell 20 percent to ý70 million in the year to October 4, after the recession hit jobs and homes classifieds and after Jobsite's marketing campaign swallowed cash.
But, despite the online division itself being dragged down, flagship Mail Online is going in the right direction - in the national Associated Newspapers unit specifically, which largely comprises the Mail, digital revenue is up 11 percent. And in the regional Northcliffe Media publisher, digital sales held steady from last year at ý17 million despite losing 35 percent of its job classifieds.
But some numbers look small - buried in the footnotes: digital's contribution to Associated Newspapers operating profit appears to have fallen from ý6 million to ý300,000.
Group-wide, parent DMGT's B2B businesses couldn't this time stop it from swinging to a massive loss. Pre-tax losses widened to ý401 million, from last year's ý68 million, despite cutting ý80 million and 16 percent of staff (1,600) in the consumer news business&
Associated Newspapers (national): "Sharp improvement in profitability", with ad revenue looking up in the year's second half. But the restructuring comes with a ý101 million exceptional charge, so profit down 15 percent to ý62 million, on 11 percent lower revenue of ý876 million. Ad revenue down 15 percent to ý350 million. Circ sales down two percent after moving Mail On Sunday promos from freebie CDs to attracting more loyal readers.
Northcliffe Media (regional): UK operating profit down 67 percent to ý20 million on 24 percent lower revenue of ý285 million. Ad sales down 30 percent to ý201 million (job ad sales down 49 percent, homes down 46 percent). Circ sales down seven percent.
These consumer news declines were big enough to overshadow DMGT's far healthier B2B businesses&
Risk Management Solutions: The catastrophe data provider's op profit is up 37 percent to ý42 million after benefiting from a stronger dollar.
DMG Information: The property and geospatial data provider saw operating profit up five percent to ý46 million despite weak property markets on boths ides of the Atlantic.
DMG World Media: Exhibition organiser's op profit down three percent to ý37 million as bookings fell.
Euromoney: Op profit basically flat at ý77 million as subscription income offset advertising declines.
Teletext losses grew by ý1 million to ý4 million ahead of being wound down in the new year.
Source: http://classifieds.blogs.ozfreeonline.com/ozfree-classifieds-news-section/mail-online-sales-growing-or-going-down
12/2/2009
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