The Group’s national newspaper division, Associated Newspapers, produced a solid performance in a year which saw the difficult advertising market continuing, strong competitive challenges on the circulation front, and significant investment for the future in the Evening Standard. The Daily Mail and The Mail on Sunday once again achieved circulation growth in overall declining markets, confirming the long term value of investing in editorial quality and providing the reader with regular added-value promotions.
The Daily Mail circulation of 2,443,000 was up for the eleventh successive year despite intense market competition. The year on year increase of 6,000 copies reaffirmed its position as the second highest selling national daily newspaper. The Daily Mail was voted Newspaper of the Year at the 2003 British Press Awards for a record third time in the last five years.
The Mail on Sunday increased its circulation by 7,000 copies to a record high of 2,367,000 and increased its market share to 16.6% despite a 10p cover price increase in March. The newspaper and You magazine continue to attract more ABC1 readers than any other Sunday newspaper or supplement. The Mail on Sunday was voted the Sunday Newspaper of the Year 2003 for overall publishing success.
The Evening Standard sale declined by 1.3% in the year, averaging 412,000. The speed of decline has been slowed significantly through increased investment in promoting the title. The recruitment supplement was successfully re-launched as londonjobs.co.uk enabling the print and internet platforms to be brought closer together, utilising the advantages of both. During the year the business was restructured to ensure it is in a better position to take advantage of any up turn in its advertising market.
Metro had an excellent year, recording a national trading profit for the first time. Circulation grew by 3% to 861,000. Metro continues to deliver an audience rich in young ABC1 readers who are in work.
Total advertising revenues were down by 1.7%,with display down 3.4% and classified up 3.3%.The Daily Mail, The Mail on Sunday and the Evening Standard had difficult years with display but Metro increased its display revenues by 28% with an increased focus on national advertising across all editions. Ireland on Sunday and Associated New Media (ANM) also achieved significant increases year on year. The Daily Mail increased its classified revenues by 6.1% and The Mail on Sunday achieved 15% growth. Loot and ANM also achieved strong growth in this category, but Evening Standard recruitment was down by 11%.
At Harmsworth Quays, Press 70 and Press 10 are enhanced, back in production and running well. The press enhancement programme, to provide the titles with increased pagination and colour availability, is within budget and on schedule for November 2004 completion. During the year printing of Associated’s titles started in Ireland, Derby, Marseilles and Belgium whilst the facilities in Manchester and Madrid have been discontinued. ANM achieved a 26% increase in traffic to its portfolio of sites and had its best ever year for revenue with growth of 40%. ANM continues to diversify its revenue streams to ensure it is not over-reliant on one category. It has begun to develop paid for content and This is London launched the first subscription product in November 2002, entitled the Insiders’ Guide. This is Travel enjoyed its first full year of operation and consolidated its position within its market with monthly users in excess of 540,000. This is Money was awarded ‘Consumer Website of the Year’ at the AOP Awards.
Ireland on Sunday has now firmly established itself as the number three in the Irish Sunday newspaper market, commanding a market share of 19.24%. Weekly circulation averaged 159,600, an increase of 85% on the previous year and Joint National Readership Survey readership was 433,000 per week, compared to 186,000 at the last survey. With strong circulation and readership figures, Ireland on Sunday is well placed to build on the achievements of the last year and take advantage of the eventual upturn in the advertising market.
Loot had a successful year. Advertising revenues were up 14.5%, reflecting the product improvements made during the year, including greater colour opportunities, increased paginations and a wider range of advertising packages. Circulation remains a challenge in an increasingly competitive market and this will be the focus in the coming year. The revenue from the website grew enormously, tripling the previous year’s performance. Buy and Sell, Loot’s equivalent in Ireland, also had a very successful year with increased profits and a 12.4% increase in circulation. It is firmly established as Ireland’s leading free advertisement paper.
The new financial year has begun well for Associated with circulation robust and advertising trading slightly ahead of last year. Although it is too early to call the turn in the national advertising market, with newsprint prices appearing stable at current levels, continuing stringent control of expenditure and strong circulation and readership figures, the outlook for commercial growth is good.