Will The Daily Mail's Full Year Report Be Worth Reading?
Connor Campbell | Nov 27, 2017 11:13
Will there be anything worth reading in the Daily Mail’s full year report on Thursday?
Despite feeling like the newspaper is the dominant press force in the UK, the Daily Mail hasn’t had a great year from a market perspective. After opening at £7.93 the stock had hit £6.11 in mid-September, before rising back to a current trading price – and 6 month high – of £7.06.
The company’s half year figures towards the end of the May really helped DMGT on its way to those September lows. The stock fell around 7% after it revealed a 76% plunge in interim pre-tax profit to £40.9 million, with like-for-like revenue flat at £293 million. Print advertising dropped 12% over the 6 month period, countered by a 19% jump in underlying sales growth at the company’s perpetual saviour Mail Online.
July’s third quarter update wasn’t much better. While pro-forma revenue was up 7% – underlying revenue was unchanged – the company warned that ‘market conditions remain challenging for some specific companies or parts of businesses’.
The most recent statement came at the start of October, with underlying revenue nudging 1% higher for the 11 months to August 2017. More damning was the claim that annual pre-tax profit would be at the lower end of estimations (though with adjusted earnings per share at the upper end of forecasts).
That means on Thursday analysts are expecting Daily Mail & General Trust to deliver a 17% slide in adjusted pre-tax profit to £214.6 million, alongside a near 8% drop in earnings, from 56p to 51.6p per share.
Daily Mail & General Trust (LON:DMGOa) has a consensus rating of ‘Hold’ alongside an average target price of £7.87.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
Get The App
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved. In relation to fixed odds, Spreadex Ltd is licensed and regulated by the Gambling Commission under licence number.
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.