Associated Newspapers reports 70% digital ad revenue rise

Associated Newspapers has reported a 73 per cent year-on-year growth in digital advertising revenues in the last three months of 2010, boosted by the success of Mail Online.

However, digital revenues at local newspaper division Northcliffe fell slightly over the same period, despite a 28 per cent increase in traffic to the 'Thisis' network.

Daily Mail and General Trust finance director Peter Williams said there was no sign of an improvement at Northcliffe since the New Year.

He told Journalism.co.uk: "Until local markets pick up a bit I don't think we're going to see too much recovery there."

In a trading update today covering the last three months of 2010, DMGT reported a five per cent like-for-like revenue increase to £211m at Associated Newspapers, the national division that publishes the Mail, Mail on Sunday and Metro.

National print advertising revenues were up three per cent in the same period, with retail advertising the biggest growth area.

The strong digital growth at Associated comes from Mail Online, which recorded 54 million unique visitors in December, up 64 per cent year on year according to ABCe.

Regional division Northcliffe Media saw revenues fall six per cent to £59m, with the biggest decline in recruitment advertising, which was 26 per cent lower, and public notices, which fell 13 per cent.

Digital revenues were hit by a 21 per cent decline in recruitment revenues, which was only partially offset by strong growth in property and motors.

DMGT's newspaper operations shed 332 jobs in the last quarter of 2010, mostly from Northcliffe.

Chief executive Martin Morgan told reporters: "Headcount has been falling much more modestly than during the depths of the recession."

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