The publisher of the Daily Mail newspaper said a downturn in the print advertising market was squeezing margins in its media business, resulting in an 11 percent drop in first-half profit and a lower outlook for the year.
Daily Mail and General Trust said the operating margin for its media business would be about 10 percent for the year, rather than remaining at last year's 13 percent.
It said the outlook for the full year was now adjusted for the change in guidance to the operating margin.
The company said print advertising revenues in the six months to end-March declined by 18 million pounds, with the market deteriorating further in the second quarter. Digital advertising grew strongly, but was not enough to close the gap, it said.
The group reported pretax profit for the period of 129 million pounds.