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The resilience of our Group in difficult
times is based on the strength of our
established businesses.
After a year of big falls in the world’s equity and advertising
markets, I am glad to report higher Group profits. This testifies
both to the strength of our titles and our businesses, and to
the excellence of our editorial and management teams. Our strategy
of investing in revenues other than advertising has again paid
off. DMG World Media had a marvellous year, as have the business
to business activities of DMG Information. Two of our newer businesses,
Metro and Euromoney Institutional Investor’s Internet Securities,
have achieved break even towards the end of the year despite the
challenges in their markets. They will do much better in the years
to come.
DMGT has always believed in investing in its businesses. Never
is this more important than when times are hard. This year we
have continued the substantial investment programme in our UK
press capacity which should come to fruition late in 2004. It
is on time and within budget. We have also chosen to invest more
in the editorial, marketing and distribution of our regional newspapers
in order to reverse the decline in their circulations. Early signs
are encouraging. These investments are why Northcliffe Newspapers
recorded marginally reduced profits, although its spread of titles
around the UK and the resilience of advertising outside London
have served it well. We continue to develop our radio network
in Australia. The launch of Nova 100 in December 2001 in Melbourne
was one of the most successful in radio history. I hope that the
launch of Nova 93.7 in Perth, which I will have the pleasure to
attend, proves to be equally successful. Most of our business
to business internet sites are profitable and our consumer internet
offerings are seeing larger audiences and revenues. Our focus
here is on the classified advertising markets.
But the resilience of our Group in difficult times is based on
the strength of our established businesses. Associated Newspapers
has weathered a substantial fall in advertising revenues by cutting
costs and increasing the circulations of its national titles.
They did this despite cover price increases, while others were
cutting theirs. Associated would have increased its profits but
for the investment in a new title, Ireland on Sunday. Euromoney
Institutional Investor has done very well in increasing profits,
despite a 12% fall in revenues. Teletext has also been successful
in defending its profitability, despite the contraction of its
core holiday advertising market.
Early in 2002, Pierre Côté retired from the Board. He has been
involved with the Group for many years and served as a Director
for seven of them. I thank him for his wise counsel and wish him
a long and happy retirement. Sir Patrick Sergeant has announced
that he will retire from the Board early in 2004. I will pay
tribute to his contribution to the Group nearer that time. Charles
Dunstone, Chief Executive of Carphone Warehouse, joined the Board
in December 2001. He is already making a valuable contribution.
I am also pleased to welcome to the Board Francisco Balsemão,
Chairman and Chief Executive of Impresa SA. I said a year ago
that our people were by far our best asset. This last turbulent
period has again shown their quality and, because of them, I am
confident that our Group will continue to thrive. I am sure all
shareholders are most grateful for their hard work and commitment.
The Viscount Rothermere
Chairman
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