British newspaper group Daily Mail & General Trust 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 percent in the 20 weeks to March 20, compared with a 6 percent decline in the company's financial first quarter to end-December. The company cut 7 percent of its staff in the five months to end-February.
DMGT said there was "continued uncertainty over medium-term outlook, particularly for B2C (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.
For the five months to end February, B2B operations showed a 10 percent underlying increase in revenues, while national newspaper advertising rose 4 percent, slower than the 6 percent growth in the first quarter.
DMGT said first-half adjusted operating profit should show some improvement over last year, excluding exceptional costs of around 10 million pounds ($16 million) for the reorganisation of its regional media unit, which will bear the brunt of job cuts.
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