DMGT - Daily Mail and General Trust plc Annual Report 3rd October 2010 Print

Connecting people and information

DMGT's management style combines a commitment to long-term growth strategies, adherence to rigorous investment criteria and an entrepreneurial culture. It's a formula that allows us to pursue growth, while staying agile and maintaining a firm grip on performance.

Here we explore DMGT's distinctive values and illustrate their impact on our businesses.

Quality content

Before you've finished reading, these words are out of date

DMGT has been reporting news for over a century. We have a proud heritage as an information business.

DMGT people live and breathe the culture. They spend their working lives discovering what people want and how the world is changing. That deep knowledge gives us a real edge.

We've always understood that people want fast access to information. In a different era, we hired trains to deliver newspapers across the country ahead of our competitors.

Today, fast means instant. Consumers and business people want real-time information on the platform of their choice. We are making that happen with iPad apps, mobile access and web portals.

And our customers are no longer passive recipients. They're getting involved by sharing information through social media, user-generated community sites and, increasingly, on professional online forums.

This dialogue is enriching content and transforming our business. Our companies are getting ever closer to their customers. We are no longer just producing content; we are orchestrating networks.

We continue to invest in our businesses – to attract and retain people who have what it takes to generate vivid content and must-have information; and to situate our companies at the heart of the online communities that are shaping tomorrow's markets.

MailOnline Mail Online Logo

With over 50 million unique visitors monthly, Mail Online has overtaken other UK newspaper-owned websites to become the clear market leader. In the UK the site reaches almost 14% of the internet population, outranking both Yahoo! and MSN news pages. It has a significant US presence. It is growing repeat traffic with its policy of offering general news content free of charge. Display ad revenues are soaring. It will reach wider populations with paid-for apps for the iPhone and iPad.

12m+Mail Online lead in monthly users versus second-placed Guardian.co.uk

70%+The proportion of the Mail Online audience that does not buy the Daily Mail, thereby dramatically extending the reach of the Mail brand.

fire Logo

EDR's award-winning social network for environmental professionals, commonground, continues to broaden its membership with compelling content. Its peer-reviewed directory was an industry first. In 2010 its specialist correspondent posted live updates on the Gulf of Mexico oil spill.

laptop Euromoney Logo

The first of a series of Euromoney Market Data products, FX delivers results online from the most comprehensive survey of global foreign exchange dealers. Its unique service offers subscribers detailed reports and analytics on the US175 trillion turnover market.

Entrepreneurial culture

The greatest risk comes from risking nothing

Being an entrepreneur is an attitude. Where others see risks, entrepreneurs embrace opportunities.

In bigger companies it can be tough to keep the entrepreneurial flame burning. Systems proliferate. The logic for consolidation, for streamlined processes, is hard to withstand.

It doesn't have to be that way. At DMGT we resist standardisation. Even if sometimes that means sacrificing economies of scale.

We believe businesses in creative industries thrive when they're distinctive. We celebrate diversity – it sharpens our competitive edge.

DMGT is a big company, but we hold onto some small business attitudes.

There has always been a healthy respect here for entrepreneurialism. This is a place where ‘can-do' trumps mere efficiency.

That entrepreneurial culture permeates the Group. We grow businesses organically and we acquire and develop thriving companies. We do that by hiring talented people, giving them plenty of responsibility and making sure they are properly rewarded. When entrepreneurs join us they get the time, space and resources to do what they do best.

Shot of people in office RMS Logo

RMS is a knowledge-based business, the world leader in catastrophe modelling. To sustain and strengthen that position, it invests heavily in talent. It attracts and develops high-calibre graduates from top universities. It has training programmes in the US and Europe, which combine formal coursework on catastrophe risk with hands-on experience via placement schemes. A series of high-profile, senior appointments in 2010 emphasised its commitment to advancing catastrophe modelling technology.

$25bnEstimated insured catastrophe losses for 2009.

Globrix Site Globrix Logo

The acquisition of 50% of Globrix.com in January 2010 added to The Digital Property Group's portfolio of leading UK property portals. Over 1.5 million tech-savvy home searchers, many in the 25-44 demographic, use the property search engine every month.

MailLife site MailLife Logo

MailLife.co.uk leverages the Mail brands without diluting editorial content. The eCommerce site offers a wide range of quality products covering home and garden, health and beauty, clothing and travel.

Innovation

Innovation doesn't just happen; it has to be made to happen

We work to retain market-leading positions in our sectors. We do that by fostering a culture of innovation right across the Group.

Dynamic, independent businesses are fertile breeding grounds for innovation. They also face hurdles. They can be constrained by insufficient funds, inadequate resources and lack of expertise or coverage.

DMGT companies retain the energy and dynamism of independent businesses, but get access to the resources of a major international group.

We have talented people working at the sharp end. They're the ones that know their customers. We trust them to make the right calls. They use their autonomy to launch new initiatives and stay one step ahead as their markets evolve.

And we share ideas across the Group. When something works well in one business, there's a good chance it will add value elsewhere. We don't impose, that's not our style, but we do encourage joined-up thinking.

£20,000 Amount raised by participation in the Prince's Trust Enterprise Challenge. 437,600 Monthly unique visitors to thisisbristol.co.uk 100 mins Time taken to secure the first 100 apprenticeships.
Shot of power tanks Genscape Logo

Founded in 2000, Genscape has grown into the world's leading provider of real-time energy market data, providing crucial operating information and fundamentals-based market intelligence to global power and gas markets. Genscape's crude oil storage and transportation reporting system, the most successful product launch in its history, is rapidly becoming the market standard for global oil trading.

45%The increase in average crude oil trading volume triggered by Genscape's new data.

Nova logo enlarged Nova Logo

dmg Radio Australia's music variety station showcases the nation's funniest comedians and includes less advertising than its rivals. Nova attracts 2.6 million listeners nationally and offers advertisers a range of innovative solutions. The launch of digital dance music station, NovaNation, has extended the brand onto the national DAB+ platform.

shot if iPhones with Evening Post site Evening Post Logo

The Northcliffe Media title in Bristol is consistently innovative about developing closer local links. Its campaign to initiate apprenticeships in 100 local firms was praised in parliament. Its online and print editions collaborate closely. The thisisbristol.co.uk website is one of the UK's most popular regional news portals, its paid-for iPhone app was the first in the country to allow users to submit comments.

Adaptability

We prize agility and value curiosity

Success breeds success, but it also breeds complacency. And when an organisation retreats to its comfort zone, it risks being overtaken.

We operate in the fluid media world. Survival depends on adapting fast.

So we prioritise learning and prize agility. We encourage our people to stay curious, to question received wisdom.

DMGT's own history offers up useful lessons. First – the value of perseverance. It can take time to build up a worthwhile business; there may be setbacks. You need to be prepared for the long haul.

Equally, there are times when radical reappraisal is what's required. Our regional newspapers are competing in a tough environment for a diminishing pool of readers and advertisers in print. We saw the way this market was headed early on and acted decisively to keep the business sustainable by investing in digital media.

We won't switch course to fit the latest trend. But we do stay agile. Where there are grounds for changing strategy, we're quick to take the necessary decisions and put them in place.

Gastech conference Gastech Logo

Gastech is established as the premier event in the global gas calendar. Originally an industry conference this dmg events business has repositioned itself over the years as a must-attend, full-spectrum event. Its strategic importance is widely recognised in the industry. The 2009 Gastech in Abu Dhabi attracted record numbers, with nearly 10,000 industry professionals in attendance. Twenty-one leading international trade associations are supporting the 25th edition of Gastech, to be held in Amsterdam in 2011.

10,000Number of energy professionals attending Gastech events.

Hobsons site shot Hobsons Logo

Originally a print directory company, Hobsons has reinvented itself as a comprehensive education solutions business. Education professionals at all levels use its innovative, enterprise-class systems to manage student preparation, recruitment, enrolment and retention, and realise their campus goals.

Metro in newspaper stand Metro Logo

Metro launched in 1999 for London commuters and swiftly became a publishing phenomenon. It is now distributed in 33 cities and is the UK's third most popular national daily paper, reaching 3.4 million readers a day during the working week. We're giving back to those communities with programmes like Urban Action, which assists charities that tackle urban issues, advertising their campaigns, working on fundraising initiatives and volunteering.

Long-term perspective

Permanent capital and quality assets

The breadth of our business interests adds stability. And we have the financial muscle to navigate market peaks and troughs.

Our structure and balance sheet strength support our long-term outlook.

We are building a global information and media group. We look for complementary businesses with strong growth prospects and where we think DMGT's involvement can make a difference.

We take a portfolio approach to investing. We only buy businesses that meet our strict investment criteria. We prefer to invest in high-growth sectors. And we look at the core characteristics of potential investments – does the business offer innovative, hard-to-replicate products and services, are its brands well-regarded?

We may occasionally divest a business if it's a better fit and offers more value for another company, but we never buy businesses to sell them on. We always buy for the long term.

Our financial track record demonstrates that our approach works. Over the past 22 years DMGT's share price has consistently outperformed the FTSE all-share index. Our dividend has grown on average by 7% annually in real terms.

Coaltrans conference Coaltrans Logo

When Euromoney acquired Coaltrans in 1994 the business ran just one conference each year. It has grown dramatically since then. It now produces 18 events annually on five continents. From the original World Coal Conference, which celebrated its 30th anniversary in 2010, to the Thermal Trading Forum, which debuts in 2011, Coaltrans has built its reputation with high-calibre conferences, exhibitions and training courses for the international coal industry.

18Number of annual events.

7,000+Each year Coaltrans' events attract over 7,000 visitors.

charity group shot Plan logo

Corporate responsibility for DMGT means more than writing out cheques. We want to have a positive social impact on the ground through long-term partnerships. Development organisation, Plan, is a natural fit. Genscape employees went to Nicaragua and Hobsons staff took on projects in Vietnam, Bolivia and Ghana.

house drawing Calnea logo

The 2010 Calnea Analytics acquisition strengthens our UK property information offering. Calnea uses proprietary algorithms and advanced data modelling to generate residential valuations. The company also publishes a monthly UK Land Registry index.

Adding value

The things that make us different are what we have in common

Our diversified portfolio adds perspective. We gain from managing our businesses as distinct, independent units, because we get exposure to different world views.

By stepping back, we give ourselves the time and space to think about the big picture.

We analyse macro trends – like cloud computing, social networks, emographic change – and we look at their impact on the markets we serve.

We maintain an active dialogue with the leaders of our businesses. We are continually pushing them to adapt their operations in line with changing market conditions.

Many of our companies, especially on the consumer side, are facing disruptive technologies. And we're seeing more instances of B2B companies borrowing ideas from other sectors. We work with our businesses to get them thinking early about how they can channel these changes most effectively.

shot of laptop Northcliffe logo

Northcliffe Media's integrated print and online offerings place it at the heart of all things local. Cornwall & Devon Media taps into the strong regional identity of England's West Country. Its four print titles are complemented by thisiscornwall.co.uk, the region's most popular local website, with over 200,000 unique users. Alliances with A&N Media's Jobsite, Motors.co.uk and FindaProperty.com deliver a broader customer experience beyond local news. The tie-ins boost circulation and user numbers for local media, and extend coverage for the national portals.

200,000Unique users visiting thisiscornwall.co.uk

26%Year-on-year rise in unique visitors for thisiscornwall.co.uk

Carbon Counter website shot Carbon Counter logo

Carbon Counter combines Landmark's application and data management expertise with the knowledge and expertise of SKM Enviros to bring businesses the best available custom-built solution for Carbon Reduction Commitment scheme compliance.

facebook conference stand Adtech logo

dmg events runs nine market-leading events under the ad:tech umbrella across four continents where digital media, marketing and technology professionals meet and do business. With debuts in 2011 for New Delhi and Melbourne further geographical expansion is planned.

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