DMGT's regional ads dive

Daily Mail & General Trust today became the latest media firm to warn over a slowdown in advertising, as revenues from its regional newspapers tumbled 12% since the start of the year.

In an ominous sign about the state of the UK economy in the provinces, recruitment advertising at the local papers dived 27%.

The figures echo the results of rivals Trinity Mirror and Johnston Press, which both saw similar drops in regional ad revenue.

DMGT's national titles, the Daily Mail and Metro, performed better, with ads up 2% since January - a slowdown after a 6% rise in the previous three months.

"The more positive trend of October and November 2010 weakened in December and this weakening has continued into the new calendar year," said DMGT, although it pointed out this was against tougher year-on-year comparatives. Media buyers report that other sectors, including ITV, are also facing a slowdown.

Underlying group revenues rose 5% thanks to the bigger business-to-business arm. Events, such as the Adipec petroleum fair in Abu Dhabi, were the standout performer, with like-for-like turnover up 11%.

Operating profits for the six months to March are expected to show "some improvement" despite higher newsprint costs.

Analysts at Numis Securities said that the results were in line with expectations.

Shares in DMGT, a minority shareholder in the Evening Standard, slipped 4p to 499p.