British newspaper group Daily Mail & General Trust has reported an accelerating decline in regional advertising revenue as demand for recruitment ads fell sharply in a fragile UK economy.
Regional ad sales fell 12% in the 20 weeks to March 20, compared with a 6% decline in the company's financial first quarter to end-December. The company cut 7% of its staff in the five months to the end of February.
The company said that there was 'continued uncertainty over medium-term outlook, particularly for business to consumer businesses, given the external economic environment and fragile consumer confidence in the UK.'
The group - which owns Britain's top mid-market tabloid the Daily Mail, a variety of trade shows and business-to-business publications and services - makes two-thirds of its sales in the UK.
The company said first-half adjusted operating profit should show some improvement over last year, excluding exceptional costs of around £10m sterling for the reorganisation of its regional media unit, which will bear the brunt of job cuts.
