DMG boost to Daily Mail profits

Newspapers now account for less than half the firm's profits

Daily Mail & General Trust has reported an 11% rise in annual profits thanks to a good performance from businesses outside its core newspaper business.

The publisher of the Daily Mail, London Evening Standard, business and regional titles made a profit of £288m.

It said it had been an "excellent year" for its DMG Information division, which serves sectors ranging from property and insurance to energy trading.

However, the firm's shares fell 9% on worries over the company's prospects.

Analysts at UBS said DMGT's outlook was "lukewarm", given that the company expected steady earnings growth in 2008 but only if the UK economy avoids a downturn.

Diversification

In addition to the good performance from its DMG division, DMGT said that it has also benefited from a "revitalised" Northcliffe local media division.

Associated, which houses the company's national titles, produced a solid performance over the year, the group added.

More than 50% of the company's operating profits are now derived from areas other than from newspapers.

DMGT's shares closed down 51.5p, or 8.9% at 531p.