Oh dear... It has not been a good week for the newspaper industry this week. Just after the shock announcement over at the Telegraph, the Daily Mail has issued its own shock announcement on a severe decline in profits. Is this the death knell of UK newspaper publishing that we've been told to expect over the last few years, happening now? This year alone, we've had the closure of the Indie albeit with its revival online. This was followed by the swift closure of New Day. With senior staff given their marching orders at the Telegraph and now a revenue decline at the Mail, the future does not look bright for the newspaper industry.
Will it recover and bounce back? We'll have to wait and see.
The owner of the Daily Mail has issued a warning to investors after reporting a 29% fall in profits, driven by a double-digit decline in print advertising, at its newspaper operation in the six months to the end of March. Daily Mail & General Trust, the parent company of the Daily Mail and Mail Online, said that overall financial results for the business are “broadly in line with expectations”. However, investors took fright at the performance of the newspaper operation sending DMGT’s share price down 9% in trading on Thursday morning. The company issued a warning to investors downgrading the performance of DMG Media, the division that houses the Daily Mail, Mail Online and freesheet Metro, which will miss its full-year targets.