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February 6, 2013

Revenue at Northcliffe fell 8 per cent ahead of Local World sell-off

By Andrew Pugh

Northcliffe Media saw its revenues fall 8 per cent fall to £49m in the three months before its sell-off to the new Local World joint venture.  

Figures released by former parent company Daily Mail & General Trust, which retains a 39 per cent stake in Local World, show group revenues during the three months to 30 December were up 2 per cent to £503m.

Revenue on the national newspaper arm Associated Newspapers, which has been rebranded to DMG Media, was down 7 per cent to £204m, with a 4 per cent fall in ad income and 6 per cent drop in circulation revenue.

The results come in the week that the cover price of the Monday-Friday Daily Mail rose from 55p-60p (the price of the Saturday edition remains unchanged).

Overall DMGT staff numbers were reduced by 123 (or 13 per cent) to 3,719 during the period. 

Northcliffe saw a 9 per cent drop in ad revenue and a 4 per cent fall in circulation revenue. The newspaper website division (mainly Mail Online) reported a 51 per cent surge in revenue with digital advertising up 8 per cent.

Explaining the name change in an interim management statement released this morning, DMGT said: “The profile of DMGT's consumer businesses has changed significantly in recent years.

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“To reflect the diverse revenue streams and business models within the portfolio, we have renamed our consumer group "DMG Media".

 The sale of Northcliffe Media and Iliffe News & Media to the new joint venture Local World was confirmed in November and the new business went live last month. .

Yattendon, owners of Iliffe, has a 21 per cent shareholding in Local World, the second largest shareholder behind Northcliffe owners DMGT, which received £52.5m cash and a 39 per cent stake in the company.

Regional rival Trinity Mirror acquired a 20 per cent stake in the company for £14.2m, with the remaining shares purchased by investors including Artefact Group (a company associated with Lord Ashcroft) and Odey Asset Management.

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