The Daily Mail is increasing its cover price from 50p to 55p from next week – the first rise in more than three years.
In a statement released this morning, publisher Daily Mail General Trust (DMGT) claimed that while the Daily Mail had ‘significantly out-performed the market throughout the last year’the high cost of news print had forced it to increase the cover price.
In its half-year financial report for the six months ending 3 April, DMGT reported during April and the first three weeks of May advertising revenue at its national newspaper division Associated Newspapers was down 5 per cent year on year.
It also expressed fears that the ‘nervous consumer and retail market’would continue through the summer and cited the ‘volatile and uncertain market conditions’faced by its UK consumer businesses.
Today the company announced that ad revenues for the 13 weeks to 3 July were down 7 per cent on 2010, and the figures for June were down 9 per cent.
‘Looking ahead, while the outlook remains uncertain, the July to September comparatives are less demanding,’the company said.
‘The cover price increase will mitigate some of the impact of the recent decline in advertising revenues.”
In the six months to 3 April, overall revenue at Associated newspapers – which includes the Daily Mail, Mail on Sunday and Metro – was down two per cent year on year to £438m and operating profit rose 18 per cent to £46m.
Circulation revenue from Associated’s newspaper operations fell 2 per cent to £171 million but advertising revenue was up 2 per cent to £183m, which the company said was largely driven by the strength of Metro and Mail Online.
The most recent circulation figures for the Mail Sunday revealed it was the only newspaper that saw an increase in circulation in May – rising 0.01 per cent to 1,918,751.
The May figures for the Daily Mail were down 1.6 per cent to 2,056,881.
The price rise comes into effect on 18 July. The price of the Saturday edition and the Mail on Sunday will remain unchanged.