Daily Mail and General : Final Results

DMGT delivers a resilient performance in line with expectations

Preliminary Full Year Financial Highlights:

· DMGT underlying^# revenue up 1%; reported revenue down 1%

· Underlying operating profit* down 4%; margin of 16%

· Adjusted profit before tax* of £281 million, down 4%

· Mixed performance from B2B; underlying revenue up 3% and underlying profit down 12%, with good profit growth from dmg information and dmg events more than offset by increased RMS(one) costs and challenging market conditions for Euromoney

· Strong profit performance from dmg media despite underlying revenue down 3%; underlying profit up 15%, margin up from 12% to 13%, driven by cost efficiencies

· Active portfolio management throughout the year, with acquisitions and disposals across B2B and consumer businesses. Disposal of Local World stake completed in November 2015

· £100 million share buy-back programme completed, £89 million in the financial year; new rolling share buy-back programme announced

· Net debt increased by £99 million to £702 million; net debt/EBITDA ratio of 1.8; within preferred range; £149 million bond buy-back completed

· Earnings per share* up 7% to 59.7p; full year dividend increased by 5% to 21.4p

Martin Morgan, Chief Executive, said:

'DMGT has delivered a resilient set of results with continued good growth in our earnings per share*. The Group has continued to deliver underlying revenue growth overall, driven by our B2B companies, and within dmg media there was a good improvement in profitability.

The strength and diversity of the Group's portfolio has enabled us to navigate challenging market conditions and take a long-term view by investing for future growth. Through our strong balance sheet, we have been able to invest in our market-leading businesses while increasing shareholder returns through both the dividend and buy-back programmes. Continuing investment to drive innovation, coupled with active portfolio management, ensures that DMGT is well placed to create long-term shareholder value. Significant organic investments are currently being made in MailOnline, RMS(one), Xceligent and across the wider dmg information portfolio.

The challenging market conditions in the UK print advertising market and those facing Euromoney in the investment banking and commodities sectors are likely to have an adverse impact on FY 2016 results, as will the disposal of DMGT's stake in Local World, which completed in November 2015. The Board remains confident, however, that the Group has a portfolio of innovative and exciting businesses and is well positioned to deliver good long-term growth.'

For further information

A presentation of the Preliminary Results will be given to investors and analysts at 9.30am on 25 November 2015, at the London Stock Exchange, 10 Paternoster Square, London, EC4M 7LS. There will also be a live webcast available athttp://www.dmgt.com/webcastfy15.

Financial reporting calendar

The Group's next scheduled announcement of financial information is the first quarter trading update on 28 January 2016.

Following a review of the frequency of financial reporting, DMGT no longer plans to schedule pre-close trading updates in March.

About DMGT

DMGT manages a balanced multinational portfolio of entrepreneurial companies, with total revenues of almost £2bn, that provide a diverse range of businesses and consumers with compelling information, analysis, insight, news and entertainment.

Notes

* Unless otherwise stated, all profit and margin figures in this Preliminary Full Year Results Report refer to adjusted results and not statutory results. Adjusted results are stated before exceptional items, other gains and losses, impairment of goodwill and intangible assets, pension finance charges, premiums on bond redemptions and amortisation of intangible assets arising on business combinations. For a reconciliation of Group profit to adjusted Group profit, see Note 11. These adjusted results, including revenue and operating profit, are for total operations, including those treated as discontinued, namely dmg media's digital recruitment business, Evenbase. Evenbase contributed operating profit of £1 million (2014: £15 million) from revenues of £3 million (2014: £53 million) and are included in the adjusted results. A reconciliation of adjusted results including discontinued operations to adjusted results excluding discontinued operations is shown on page 23.

~ Percentages are calculated on actual numbers to one decimal place.

# Underlying revenue or profit* is revenue or profit on a like-for-like basis, adjusted for constant exchange rates, disposals, closures, non-annual events occurring in the current and prior year and acquisitions; see pages 24 and 25. For dmg information, underlying growth includes the year-on-year organic growth from acquisitions. For dmg events, the comparisons are between events held in the year and the same events held the previous time other than the Global Petroleum Show, which became an annual event in June 2015, which is compared to the average of the revenues and profits of the biennial June 2013 Gas & Oil Expo and the biennial June 2014 Global Petroleum Show which it superseded. For Euromoney, acquisitions are completely excluded and comparisons for events are between events held in the year and the same events held the previous time. Euromoney's underlying profit excludes the benefit in FY2014 of the historic acceleration of its CAP incentive plan charge, excludes the charge in FY2014 in respect of the accrual for the CAP 2014 scheme and excludes the benefit in FY2015 of the subsequent release of that accrual. For dmg media, underlying comparisons exclude Villarenters, Metro Play and Evenbase, which were disposed of last year and this year, and exclude distribution services, which ceased last year. dmg media's underlying growth includes the year-on-year organic growth from acquisitions and underlying revenues only include the profit but not the gross-up, equivalent to the cost of sales, from low margin newsprint resale activities.

^ These statutory highlights are for continuing operations only (excluding the discontinued operations, dmg media's digital recruitment business, Evenbase), other than earnings per share which is the total statutory figure.

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Management Report

This management report, on the unaudited preliminary results for the year ended 30 September 2015, focuses principally on the adjusted results to give a more comparable indication of the Group's business performance. All year-on-year comparisons are on a like-for-like basis. The reported results include discontinued operations, namely the Evenbase business.

An explanation of restructuring and impairment charges and other items included in the statutory results is set out after the divisional performance review and in the segmental note (Note 4). The adjusted results are summarised below:

Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers.

Notes

* Unless otherwise stated, all profit and margin figures in this Preliminary Full Year Results Report refer to adjusted results and not statutory results. Adjusted results are stated before exceptional items, other gains and losses, impairment of goodwill and intangible assets, pension finance charges, premiums on bond redemptions and amortisation of intangible assets arising on business combinations. For a reconciliation of Group profit to adjusted Group profit, see Note 11. These adjusted results, including revenue and operating profit, are for total operations, including those treated as discontinued, namely dmg media's digital recruitment business, Evenbase. Evenbase contributed operating profit of £1 million (2014: £15 million) from revenues of £3 million (2014: £53 million) and are included in the adjusted results. A reconciliation of adjusted results including discontinued operations to adjusted results excluding discontinued operations is shown on page 23.

# Underlying revenue or profit* is revenue or profit on a like-for-like basis, adjusted for constant exchange rates, disposals, closures, non-annual events occurring in the current and prior year and acquisitions; see pages 24 and 25. For dmg information, underlying growth includes the year-on-year organic growth from acquisitions. For dmg events, the comparisons are between events held in the year and the same events held the previous time other than the Global Petroleum Show, which became an annual event in June 2015, which is compared to the average of the revenues and profits of the biennial June 2013 Gas & Oil Expo and the biennial June 2014 Global Petroleum Show which it superseded. For Euromoney, acquisitions are completely excluded and comparisons for events are between events held in the year and the same events held the previous time. Euromoney's underlying profit excludes the benefit in FY2014 of the historic acceleration of its CAP incentive plan charge, excludes the charge in FY2014 in respect of the accrual for the CAP 2014 scheme and excludes the benefit in FY2015 of the subsequent release of that accrual. For dmg media, underlying comparisons exclude Villarenters, Metro Play and Evenbase, which were disposed of last year and this year, and exclude distribution services, which ceased last year. dmg media's underlying growth includes the year-on-year organic growth from acquisitions and underlying revenues only include the profit but not the gross-up, equivalent to the cost of sales, from low margin newsprint resale activities.

~ Percentages are calculated on actual numbers to one decimal place.

The average £: US$ exchange rate for the year was £1:$1.54 (2014 £1:$1.66). The rate at the year end was $1.51 (2014: $1.62).

All references to profit or margin in this management report are to adjusted profit or margin, except where reference is made to statutory profit.

Summary

Group performance: DMGT has delivered a resilient performance. Group revenue* for the year was £1,845 million, compared with £1,864 million for the prior year, representing an underlying^# increase of 1%. Following the disposal of the digital recruitment business, Evenbase, during 2014 and the non-occurrence of the Gastech event this year, reported revenues declined by 1% including the benefit of the stronger US dollar relative to the pound. Good underlying growth was delivered in several revenue categories, particularly digital advertising, subscriptions, events and transactions, partly offset by the revenue decline in print advertising and circulation.

Performance for our B2B businesses and our consumer business, dmg media, on a reported and underlying basis is summarised below.

Operating profit* declined by 7% to £288 million. The underlying decline was 4%, as a result of increased costs associated with RMS(one) and declining profits at Euromoney, partially offset by underlying profit growth from dmg information, dmg events and dmg media.

The Group's B2B companies' operating profits were down 12% on both a reported and underlying basis. The operating profits of dmg media were up 1% on a reported basis, following the disposal of Evenbase, and up 15% on an underlying basis. After head office costs allocated according to revenues, the B2B group of businesses generated 72% of this year's operating profit with 28% generated by consumer businesses, compared to 75% and 25% for the prior year. The shift reflects the increased RMS cost base, the decline in Euromoney's profits and the non-occurrence of Gastech. Well over half of the Group's operating profits were derived from outside the UK.

Adjusted profit before tax* declined by 4% to £281 million. This reflects the decline in operating profit described above, a slight increase in income from joint ventures and associates and a significant reduction in net finance costs due to lower levels of bond debt following the £149 million buy-back in October 2014. Adjusted Group profit after tax and minority interests* was up 4% to £216 million as a result of a lower tax charge and reduced profits attributable to minority interests. Adjusted earnings per share* rose by 7% to 59.7p, benefiting from share buy-back programmes. The full year dividend increased by 5% to 21.4p, in line with our target of delivering real dividend growth over the long-term.

The statutory profit before tax, excluding discontinued operations, for the year was £216 million after £58 million of amortisation and impairment charges in respect of goodwill and acquired intangible assets, £23 million of net exceptional charges and £82m of other gains and losses, notably gains on the disposal of Jobsite. Statutory profit after tax was £245 million, down from £283 million, reflecting the significant profits on disposals made in the prior year, and statutory earnings per share decreased from 70.6p to 60.1p.

Net debt: increased by £99 million to £702 million, following £89 million of share buy-back payments during the year and a £40 million premium on the early redemption of bonds in October 2014. At the year end, the Group's net debt comprised £420 million of bonds, £307 million of bank borrowings, £7 million of loan notes and derivatives and a cash balance of £32 million. The Group's ratio of net debt to EBITDA was 1.8 times at the year end, below the Group's preferred upper limit of around 2.0 times and significantly below the requirements of the Group's bank covenants.

Active portfolio management: has continued throughout the year with acquisitions totalling £123 million and disposals totalling £143 million. Consistent with the past few years, the majority of acquisitions and investments were made by dmg information.

dmg information's energy business, Genscape, acquired Locus Energy, Energy Fundamentals and a controlling stake in Petrotranz. Hobsons, dmg information's education business, acquired Starfish Retention Solutions. In dmg information's property information segment, SiteCompli acquired Empower, and minority investments were made in Liases Foras and Propstack in India and in Funcent in China. ETSOS, a UK-based provider of conveyancing searches which complements both Landmark and SearchFlow, was acquired in October 2015.

dmg events acquired Gulf Glass and GulfSol, Euromoney acquired a 15.5% stake in Dealogic and invested in Estimize and dmg media acquired Elite Daily.

Zoopla Property Group Plc, in which DMGT holds a c.31% stake, acquired uSwitch, the UK price comparison website and lead generation engine, for consideration of £160 million cash and a performance based earn-out of up to £30 million.

Disposals during the year included dmg information's Lewtan, Euromoney's Capital Data, as part of the Dealogic transaction, dmg events' digital marketing business and Jobsite, dmg media's digital recruitment business. In November 2015, DMGT sold its 39% stake in Local World to Trinity Mirror for £73 million.

Outlook

Group: we have entered the new financial year with our businesses performing in line with our expectations. Whilst certain of our B2B businesses are facing challenging market conditions, overall we still expect to deliver underlying revenue growth for the B2B sector as a whole. On the consumer side, revenue progress will be largely dependent on the print advertising environment, balanced against further growth in digital areas, although a continued focus on cost efficiencies should provide margin stability for dmg media.

RMS: will continue to deliver both enhanced and completely new models during the coming year. These will include the first 'high-definition models', which offer a far greater degree of granularity, on the RMS(one) platform. The business will continue to invest in RMS(one) and staged releases of the product are expected to take place during the year, with revenues building towards the end of the year and into FY 2017. Given the limited incremental revenues from RMS(one) during FY 2016, continued investment in the product and the impact of client consolidation, RMS is expected to deliver underlying revenue growth in the low-single digits and the margin is expected to remain stable in FY 2016.

dmg information: is expected to benefit from new product initiatives and strong customer demand, as well as good revenue performance from recent acquisitions in all its sectors. We expect underlying revenue growth to be in the region of 10%. The business continues to target sustained double-digit underlying revenue growth through investment in organic initiatives and continued bolt-on acquisitions. The impact of this investment, combined with the recent early stage, low-margin and loss-making acquisitions, is expected to result in an operating margin in the mid-teens in FY 2016.

dmg events: will benefit from the occurrence of the Gastech event but results are expected to be adversely impacted by the disposal of the digital marketing business and weak energy prices, with energy-related events accounting for approximately half of revenues. The growth rate for both underlying and reported revenues is expected to be in the mid-single digits in FY 2016 and the operating margin is expected to increase to around 25%.

Euromoney:experienced a deterioration in market conditions during the second half of FY 2015, with an underlying decline in revenues of 5%. Euromoney's activities in the investment banking and commodities sectors continue to face structural and cyclical headwinds, while the outlook for emerging markets remains weak. In contrast, the businesses serving the asset management industry have remained relatively robust. The revenue trends experienced in the second half of FY 2015 are continuing into the first half of FY 2016.

dmg media: is expected to deliver stable underlying revenues, in the -2% to +2% range, with digital advertising growth helping to offset circulation and print advertising declines. Reported results will benefit in FY 2016 from the inclusion of 53 weeks of trading, compared to 52 weeks in FY 2015. The operating margin is expected to remain broadly in line with the 13% achieved in FY 2015. dmg media's first quarter trading to date has been satisfactory, although we remain cautious about the medium term outlook given continuing external uncertainties, particularly for UK print advertising.

Joint ventures and associates: will be lower due to the disposal of DMGT's stake in Local World. Further progress is expected from both Zoopla and Dealogic. DMGT's share of pre-tax profits from joint ventures and associates is expected to be in the £15 million to £20 million range.

Net debt and capital allocation: the year end net debt:EBITDA ratio of 1.8 times is within our preferred upper limit of 2.0 times and the Board remains confident in the overall outlook for the Group and its operating cash flows. Net finance costs are expected to be around £40 million in FY 2016, broadly in line with FY 2015. We believe that the creation of shareholder value over the long term requires a balanced approach to investing in growth and returning capital to shareholders while maintaining a strong balance sheet. We continue to look for attractive acquisitions and actively manage our business portfolio while maintaining our dividend policy. In reviewing our capital allocation programme, the Board has decided to utilise part of its authority to make on-market purchases of A Ordinary Non-Voting Shares and commence a new rolling share buy-back programme.

Business Review

Business to Business (B2B)

These results are stated after allocating Group corporate costs on the basis of B2B's share of Group revenues.

Revenues from the B2B group totalled £1,115 million, up 3% on the prior year on an underlying basis. Operating profits, including allocated Group corporate costs, were £206 million and were down 12% on an underlying basis, reflecting increased investment in RMS(one). There was strong underlying operating profit growth at dmg information and dmg events, although a decline in operating profits at Euromoney. The overall B2B operating margin declined to 19%, reflecting the increased costs at RMS, the non-occurrence of the Gastech event in the year and a reduction in Euromoney's margin.

Risk Management Solutions (RMS)

These results are stated before the allocation of Group corporate costs.

RMS's revenues increased by 9% on a reported basis, including the benefit of the stronger US dollar. On an underlying basis, the increase was 1% for the year as a whole, with an improvement to 4% in the second half. The core modelling business experienced continuing demand for its subscription services, with overall renewal rates remaining above 95%. This robust performance was achieved despite challenging conditions in the reinsurance industry and the adverse impact of some consolidation within RMS's customer base.

As expected, there was a significant increase in costs related to RMS(one), the software as a service (SaaS) platform, and a reduction in the capitalisation of expenditure on developing the product. Operating profit therefore declined by 42% and by 46% on an underlying basis. The operating margin was 14%, in line with the guidance given in November 2014.

RMS continues to innovate in the catastrophe risk modelling market to strengthen its leading market position. Revenues benefited from the release of the upgraded core risk modelling software product, RiskLink15, in March 2015. The release delivered significant enhancements to the flagship North Atlantic Hurricane and European Windstorm models and, for the first time, was delivered through electronic download via RMS's data centres. RMS's pipeline of new and upgraded models and data is strong, reflecting a significant increase in model development resources over the past two years. The company's largest global modelling team to date is currently developing 44 new models and data products, representing a 25 per cent increase in its catalogue.

RMS(one) continued to be a major area of focus and investment during the year with the technical design and architecture of the platform now completed. During this time there has been strong continuing support for the platform from the company's Joint Development Partners as well as its wider customer base. RMS continues to work closely with its clients and a select group are currently being trained on and are testing the results of the first high-definition model, European Flood. RMS remains on track to release additional applications for exposure analytics and risk modelling, in stages, during 2016, with clients being able to begin migrating from RiskLink to RMS(one) by the end of 2016. Given the approach of staged releases to select clients, incremental revenues from RMS(one) are expected to develop gradually during FY 2016, with a greater impact on RMS revenues anticipated during FY 2017.

Outlook for RMS

Given the continued consolidation in the re-insurance industry and the limited impact that RMS(one) is expected to have on short-term revenues, underlying revenue growth is expected to be in the low-single digits in FY 2016. The business will continue to incur significant costs, as expected, in respect of RMS(one) although, given the staged releases, amortisation costs are not expected to commence until towards the end of FY 2016. RMS's overall operating profit margin in FY 2016 is expected to be similar to FY 2015.

dmg information

These results are stated before the allocation of Group corporate costs.

dmg information had another good year with overall underlying revenues up 8%. The energy information business, Genscape, delivered double-digit underlying revenue growth whilst the property information and education information businesses generated mid-single digit growth. Reported revenues, including the benefit of the stronger US dollar, were up 10%. Operating profit grew by 9% on an underlying basis and the operating margin of 17% was in line with last year.

Property information

Operating profits are stated after including the allocation of central dmg information costs but before the allocation of Group corporate costs. Property information includes Trepp, which was previously classified as a financial information business.

Our Property information portfolio, which now includes Trepp, grew underlying revenues by 6%. While there was good growth from the US businesses, there was more muted growth from the European businesses, Landmark and SearchFlow, which were adversely affected by the weaker residential market in the UK, where the volume of mortgage approvals was 3% lower than last year. Nevertheless, despite these difficult trading conditions, underlying revenues for the European businesses increased by 4%, benefiting from new product launches and initiatives to expand the business across the property value chain. ETSOS, a UK-based provider of conveyancing searches which complements both Landmark and SearchFlow, was acquired in October 2015.

The five US-based property information businesses collectively delivered underlying revenue growth of 9%, despite volumes in the US commercial property market remaining relatively unchanged. The earlier stage businesses, Xceligent, SiteCompli and BuildFax, grew particularly well during the year while EDR and Trepp both delivered single digit underlying revenue growth. Xceligent, which is one of a small number of providers of fully researched US commercial property and listing information, increased its investment as it continues to expand its coverage into more US cities. In July 2015, SiteCompli acquired Empower, which is also a New York based property compliance business, further increasing dmg information's ability to bring transparency to the real estate sector. In addition, minority investments were made in Liases Foras and Propstack in India, and in Funcent in China, as part of dmg information's international expansion strategy.

Revenue growth was supported by continued investment in new products and technological developments. Operating profit increased by 7% on an underlying basis and by 12% on a reported basis, despite increased investment in Xceligent and SiteCompli during the year.

Education and Energy information

Operating profits are stated after including the allocation of central dmg information costs but before the allocation of Group corporate costs. Results include Lewtan, which was disposed of in October 2014, but exclude Trepp, which is now classified as a property information business.

Revenue of £150 million was up 7% on a reported basis, including the adverse impact of the disposal of Lewtan, which occurred in October 2014. Underlying revenue growth was 11%, with Genscape continuing to perform particularly strongly. Operating profit increased by 16% on an underlying basis, reflecting Hobsons' continued margin improvement, and by 4% on a reported basis.

Hobsons' underlying revenues increased by 6%, with continued good growth from the K-12 school business. Higher education revenues were adversely impacted by the absence of revenues from The Common Application project which was completed in September 2014. This multi-year project enabled The Common Application to deliver, in-house, services that were previously outsourced to Hobsons. Adjusting for the discontinuation of services to The Common Application, Hobsons' underlying revenue growth would have been 14% and the underlying revenue growth rate for dmg information as a whole would have been 9%. Hobsons continues to improve its operating margin due to the benefits of new technology platforms, in particular Radius, operating on a lower cost base. In February 2015, Hobsons acquired Starfish Retention Solutions, a business which helps higher education clients provide personalised support for their students and to assess which services and interventions will keep students on track to graduating successfully.

Genscape continued its strong growth trajectory, providing real-time, fundamental production data and analysis in the power, oil, gas, agriculture, biofuels, water and marine shipping markets. Underlying revenues increased by 19% with particularly good growth from its oil, North American gas, solar and marine shipping products. Genscape continued its strategy of investing in the development of new products and in acquiring strategic bolt-on businesses, intended to act as catalysts for further organic growth. In September 2015, Genscape acquired Locus Energy, a leading US-based provider of solar photovoltaic (PV) performance monitoring and data analytics. Earlier in the year Genscape acquired Energy Fundamentals, the provider of analytical tools for the European power market, and a controlling stake in Petrotranz, which provides clients in the oil and natural gas industries with a platform to automate inefficient processes.

Outlook for dmg information

dmg information expects to benefit from new product initiatives and strong customer demand, as well as good revenue performance from recent acquisitions. We expect underlying revenue growth for FY 2016 to be in the region of 10%. The business continues to target sustained double-digit underlying revenue growth through investment in organic initiatives and continued bolt-on acquisitions. The impact of this investment, combined with the recent low-margin and loss-making acquisitions, is expected to result in an operating margin in the mid-teens in FY 2016.

dmg events

These results are stated before the allocation of Group corporate costs.

dmg events had another very good year with underlying revenues increasing by 16%. Reported revenues declined by 5% due to the absence of the Gastech event in FY 2015. The two large existing annual events, Big 5 Dubai and ADIPEC, both performed particularly strongly with good increases in revenues and attendance levels. The Global Petroleum Show, the other large event which took place in the year, successfully transitioned from a biennial to an annual frequency. dmg events also continued to expand through geo-cloning existing events into new territories, with the launch of Big 5 Construct Indonesia, and through spinning off sections from existing shows, such as Middle East Coverings from the INDEX interior design exhibition and Middle East Stone from Big 5 Dubai.

Underlying operating profit growth was 28%, although the operating margin was adversely affected by the absence of the Gastech event.

In September 2015, dmg events disposed of its digital marketing exhibitions, including the ad:tech shows, improving the growth profile and margin of the remaining business. Two relatively small events in the construction and energy sectors, Gulf Glass and GulfSol, were acquired in November 2014 and augment dmg events' existing portfolio of Middle East events.

Outlook for dmg events

Gastech, one of the business's largest events, occurs in FY 2016 and will benefit reported results. The disposal of the low margin digital marketing events will mainly have an adverse impact on revenues. In addition, the sustained low oil price has had a negative impact on sales bookings for energy-related events, which account for approximately half of the business's revenues. The underlying and reported revenue growth rates for dmg events as a whole are therefore expected to be in the mid-single digits. Three of the four large events of the year occurred in October and November 2015 and collectively delivered mid-single digit underlying revenue growth. The operating margin for dmg events is expected to increase to around 25%, despite the cost of launching new events and the ongoing investment in existing events to deliver sustainable long-term growth.

Euromoney Institutional Investor

These results are stated before the allocation of Group corporate costs.

Euromoney released its preliminary results on 19 November. Revenues declined by 2% on an underlying basis and by 1% on a reported basis, including the benefit of the stronger US dollar. Revenues declined by an underlying 5% during the second half of the year, following 1% underlying growth in the first half, due to the adverse impact on the events businesses of the downturn in commodity prices and weakness in emerging markets. Delegate and sponsorship revenues for the full year declined by an underlying 5% and 2% respectively. Subscriptions, which accounted for 52% of revenue in the year, grew by 2% on an underlying basis while advertising, which accounted for 12% of revenue, declined by an underlying 11%.

Operating profit declined 15% on an underlying basis and by 9% on a reported basis, including the benefit of acquisitions, the release of £3 million of previously accrued CAP incentive plan costs and the stronger US dollar. The operating margin of 26% was adversely impacted by increased property and technology investment costs, the disposal of Capital Data and the high marginal profit on declining advertising and delegate revenues.

In December 2014, Euromoney acquired a 15.5% equity stake in Dealogic Holdings plc and, as part of the transaction, disposed of its interests in Capital Data and Capital Net. Dealogic is included in Associates and is excluded from Euromoney's operating profit. Similarly, in September 2015, Euromoney acquired a 10% stake in Zanbato, the international private capital placements platform and workflow tools provider.

Outlook for Euromoney

Euromoney's activities in the investment banking and commodities sectors, which together account for more than two thirds of the company's revenues, continue to face significant structural and cyclical headwinds, while the outlook for emerging markets remains weak. In contrast, the businesses serving the asset management industry, which are predominantly subscription-driven, have remained relatively robust. These conditions are expected to continue for the foreseeable future and the revenue trends experienced in the second half of FY 2015 are continuing into the first half of FY 2016.

Andrew Rashbass, Euromoney's Chief Executive Officer, who was appointed to the Euromoney Board on 1 October 2015, is leading a review of Euromoney's strategy and its portfolio of businesses. Euromoney plans to provide an update on strategy in early 2016.

Consumer media

dmg media

These results are stated before the allocation of Group corporate costs. Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers.

Summary

Revenues declined by an underlying 3% to £731 million. While there was good underlying growth from the digital businesses, this was exceeded by declining circulation and print advertising revenues from the Daily Mail and The Mail on Sunday. Reported revenues declined by 8%, primarily due to the disposal of dmg media's digital recruitment business, Evenbase, during 2014.

The underlying increase in digital advertising revenues across the dmg media portfolio of 21% largely offset the ongoing decline in print advertising revenues of 8%, with total combined underlying advertising revenues declining by 1%. Print advertising revenues declined by 12% during the second half of the year, a significant deterioration compared to the 5% decline in the first half. Circulation revenues declined by 4%, outperforming in a difficult market environment.

Operating profit for the year increased by 1% to £96 million. The underlying increase was 15%. The increased investment in MailOnline was more than offset by lower costs, notably distribution, marketing, newsprint and central support services at the Daily Mail and The Mail on Sunday. These factors contributed to the increase in operating margin from 12% to 13%.

Mail businesses

Revenues for the combined Mail newspapers and digital businesses (Daily Mail, The Mail on Sunday and MailOnline) declined by an underlying 5% to £572 million. An 11% decline in print advertising revenue and a 4% decline in circulation revenue were partly offset by the underlying 16% growth from MailOnline in the year. Circulation volumes continued to decline, although the strength of the Mail brand enabled a continued increase in the Daily Mail's and The Mail on Sunday's market shares to an average of 23.2% and 21.8% for the year respectively, compared to 22.4% and 21.3% in the prior year∞. The increased market share reflects the focus on the quality of editorial content as well as an encouraging response to readership loyalty initiatives implemented during the year, the most significant of which was MyMail. Revenues benefited marginally from the increase in the cover price of The Mail on Sunday in April 2015 from £1.50 to £1.60.

Total advertising revenues for the Mail businesses were £242 million, a decline of £10 million, 4% on the prior year. The increase of £11 million, 18% in MailOnline's advertising revenues was exceeded by the decline of £21 million, 11% in print advertising revenues.

MailOnline continues to grow strongly, with 208 million monthly global unique browsers and 13.4 million average daily global unique browsers in September 2015. During the year there was a 24% increase in the average number of monthly unique browsers, compared to the prior year, and a 23% increase in average daily unique browsers. MailOnline continues to focus on increasing the size and engagement level of its global audience and, in particular, its US audience alongside gaining traction with its US advertiser base. There were 67 million monthly unique browsers in the US and 3.6 million average daily unique US browsers in September 2015, with average growth during the whole year of 22% and 23% respectively, and MailOnline's US revenues grew by an underlying 38% to £18 million.

Despite the decline in the Mail businesses' revenue, the operating margin increased to 14%, compared to 12% in the prior year, reflecting further reductions in costs.

Other dmg media businesses

Revenue at Metro was £75 million, an increase of 1%, a particularly strong performance in the context of a weak UK print advertising market. Metro remains the UK's third largest daily newspaper, read every weekday by an average of 3.3 million people.

Wowcher, the daily deals and online discounts business, continued to deliver substantial growth, with revenues increasing 25% to £30 million. The business has developed a database of 8.3 million customers, 39% more than September 2014.

In January 2015, dmg media acquired Elite Daily, the news and entertainment website. The business is relatively small and is still in investment phase. The increased scale and breadth of the combined audience will strengthen MailOnline's offering to US advertisers.

Operating profits for Metro, Wowcher and Elite Daily combined increased by 12%, or 18% on an underlying basis, to £16 million, reflecting Wowcher's transition to profitability and improved profits from Metro.

The disposal of Jobsite, in October 2014, completed dmg media's exit from the digital recruitment market following the disposal of the other Evenbase businesses earlier that year.

Other reported revenues include low margin newsprint sales to other publishers which are excluded from underlying revenue growth.

Outlook for dmg media

For FY 2016, dmg media expects to deliver stable underlying revenues, in the -2% to +2% range, with digital advertising growth helping to offset circulation and print advertising declines. Due to the publishing cycle, dmg media's results include a whole number of weeks' performance in each year and the FY 2016 results will include a 53^rd week up to Sunday 2 October 2016. The additional week will be excluded from underlying growth rates but will benefit reported results. The operating margin is expected to remain broadly in line with the 13% achieved in FY 2015, with cost efficiencies helping to protect profitability. Trading during the eight weeks since the year end has seen stable underlying advertising revenues, with digital growth offsetting the decline in print advertising, and circulation revenues declining by 5%.

Joint ventures and associates

Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers.

The Group's share of the operating profits* of its joint ventures and associates was £33 million, an increase of 4% compared to the prior year. The share of operating profits from Zoopla Property Group (ZPG) declined due to DMGT owning a reduced stake, which was c.31% in September 2015, compared to c.52% for most of the prior year ahead of the IPO of the business in June 2014. In June 2015, ZPG announced the completion of the acquisition of uSwitch, the UK price comparison website and lead generation engine, for consideration of £160 million cash and a performance based earn-out of up to £30 million. On 22 October 2015, ZPG released a post-close trading update and indicated that revenues and adjusted EBITDA for the 12 months to 30 September 2015 were expected to be around £107 million and £48 million respectively. The announcement of ZPG's Full Year results is scheduled for 2 December 2015.

The share of profits from Local World, in which DMGT owned a c.39% stake during the year, was £17 million compared to £15 million in the prior year, reflecting an improved profit margin. In November 2015, the stake in Local World was sold to Trinity Mirror plc for consideration of £73 million cash, net of transaction costs.

In December 2014, Euromoney acquired a 15.5% stake in Dealogic Holdings plc. Dealogic provides data and analytics, market intelligence and capital markets software solutions to investment banks to help them manage their workflows, assist with the deal origination and execution, and optimise productivity. The share of operating profits from Dealogic was partly offset by the share of losses from investments in early stage businesses, notably investments by dmg information, which continued to be acquisitive during the year.

Outlook for joint ventures and associates

The FY 2016 share of operating profits from joint ventures and associates will be adversely impacted by the disposal of Local World and, to a much lesser extent, by losses from early stage businesses. Results are, however, expected to benefit from ZPG's acquisition of uSwitch and Dealogic's growth. In the absence of any significant acquisitions and disposals, the share of operating profits from joint ventures and associates in FY 2016 is expected to be in the range of £15 million to £20 million.

Net finance costs

Following the redemption of bonds in December 2013 and October 2014, net interest payable and similar charges declined by 21% to £40 million. There was negligible investment income in either the year or the prior year.

Following its disposal of MeteoGroup, the Press Association paid a dividend of £9 million in the prior year and £3 million in the current year but, given the reason for the dividends, they have been excluded from adjusted results.

The pension finance charge, which is excluded from adjusted results, was £7 million compared to £8 million in the prior year.

Exceptional finance costs also included a £40 million charge for the premium on the early redemption of bonds in October 2014 when DMGT redeemed £93 million of 10.0% Bonds, due 2021, and £56 million of 5.75% Bonds, due 2018. The prior year included a £24 million charge for the premium on the early redemption of bonds in December 2013.

Outlook for net finance costs

In the absence of further bond buy-backs, net finance costs in FY 2016 are expected to be around £40 million, broadly in line with FY 2015.

Other income statement items

· Exceptional items and amortisation

Exceptional operating costs, including the impairment of software and tangible assets, were £23 million, compared to £72 million in the prior year. The reduction was primarily due to the impairment of the RMS(one) asset in FY 2014. Exceptional costs included £20 million of reorganisation, redundancy and consultancy costs, a reduction on the £27 million in the prior year. Exceptional operating costs were primarily incurred at dmg media and included £9 million of severance costs and £6 million of office move costs, following the reduction in London-based employee headcount.

The charge for amortisation of intangible assets arising on business combinations, including the share from joint ventures and associates, increased by £4 million to £48 million. The Group also made an impairment charge against goodwill and acquired intangible assets of £20 million, notably in respect of Euromoney's Mining Indaba, HedgeFund Intelligence and CIE businesses.

The Group recorded other net gains on disposal of businesses and investments of £131 million, compared to a net gain of £179 million in the prior year. The gains primarily related to the disposal of dmg media's digital recruitment business, Jobsite, and the disposals of Capital Data and Capital Net as part of Euromoney's Dealogic transaction.

· Taxation

The adjusted tax charge of £41 million is stated after adjusting for the effect of exceptional items and was £18 million less than last year. The adjusted tax rate for the year decreased to 14.8% from 20.1% in FY 2014. The decrease reflects the smaller proportion of the Group's profits derived from US businesses and also the benefit of previously unrecognised historic losses. Due to the mix of profits, the effective tax rate is expected to increase over the next three years, towards 20%, as the proportion of US-generated profits increases.

The statutory tax charge for the year, excluding £5 million of tax charges in respect of joint ventures and associates, was £21 million, £20 million less than the adjusted tax charge. There were tax credits of £8 million in respect of the amortisation and impairment of intangible fixed assets and tax charges of £4 million on the disposal of businesses. There were also £15 million of tax credits on exceptional items, predominantly on the bond buy-back and other restructuring charges.

The deficit on the Group's defined benefit pension schemes decreased from £212 million at the beginning of the year to £159 million at 30 September 2015 (calculated in accordance with IAS 19 (Revised)), with the increase in the value of assets exceeding the increase in the defined benefit obligation. Funding payments into the main schemes during the year were £48 million, including £18 million of contributions in respect of the share buy-back programme. The funding plan accruing to the main schemes that was agreed in February 2014 remains unchanged. It includes payments of approximately £34 million per annum to 2020, £28 million per annum to 2022 and then £23 million per annum to 2026. In addition a contribution equal to 20% of any share buy-backs is contributed to the schemes, albeit this is offset by up to £5 million of agreed funding contributions each year. Contributions will be discontinued should the schemes' actuary agree the schemes are no longer in deficit. The next formal actuarial valuation is scheduled for 31 March 2016. The defined benefit schemes are closed to new entrants.

Net debt at the end of the year was £702 million, an increase of £99 million during the year and a decrease of £52 million since the half year. The Group generated operating cash flows of £259 million, a 90% conversion rate of operating profits*, compared to 78% in the prior year, and benefited from the timing of the Gastech event in October 2015. Operating cash flows included exceptional operating items of £20 million and capital expenditure of £61 million, excluding £24 million of expenditure in respect of RMS(one).

Net proceeds from disposals and acquisitions were £20 million. Cash out-flows included £89 million on the share buy-back programme, dividends of £85 million, pension funding of £48 million, interest payments of £40 million, a £40 million premium on the early redemption of bonds in October 2014 and taxation of £22 million.

In October 2014, DMGT redeemed £93 million of the 10.0% Bonds, due 2021, and £56 million of the 5.75% Bonds, due 2018. At the year end, the Group's Bond debt was £420 million and comprised £212 million of the 5.75% Bonds, due 2018, £10 million of the 10.0% Bonds, due 2021, and £198 million of the 6.375% Bonds, due 2027. Bond debt constitutes less than half of the debt available to DMGT. At the year end, the bank facilities were £585 million, of which £278 million was unutilised, and surplus cash was £32 million.

The Group's ratio of year end net debt to adjusted profits before interest, depreciation and amortisation (EBITDA) was 1.8 times, below the Group's preferred upper limit of around 2.0 times, and well within the requirements of the Group's bank covenants. Throughout the year, the Group's corporate credit rating remained at investment grade BBB-.

The Directors consider that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing its accounts.

The Board of DMGT remains confident in the overall outlook for the Group and believes that the creation of shareholder value over the long term requires a balanced approach to investing in growth and returning excess capital to shareholders, whilst maintaining a strong balance sheet. Balanced against continued organic investment, the Group continues to look for attractive acquisitions while maintaining a policy of growing dividends in real terms over the economic cycle. In FY 2015, we believe we have achieved an appropriate balance of these capital allocation priorities, including DMGT's September 2014 £100 million share buy-back programme which was completed on 10 September 2015. Over the course of the programme, the Group acquired 12.2 million A Ordinary Non-Voting Shares, at an average cost of £8.20 per share, including 10.8 million shares for £89 million during the year.

In reviewing DMGT's capital allocation programme and looking to the future, the Board has decided to continue to utilise part of its authority to make further on-market purchases of the A Ordinary Non-Voting shares as part of an ongoing rolling programme. The size, frequency and number of purchases will depend on the portfolio management of the Group, including anticipated acquisition and disposal activity, and maintaining the preferred gearing ratio.

During the year, the Group acquired 10.8 million A Ordinary Non-Voting Shares for £89 million under the September 2014 share buy-back programme. The Group acquired a further 4.7 million A Ordinary Non-Voting Shares for £38 million in order to meet obligations to provide shares under its incentive plans and utilised 4.2 million shares out of Treasury, valued at £34 million, to provide shares under various incentive plans. During the year, the Group cancelled 30.9 million A Ordinary Non-Voting Shares that were previously held in Treasury. As at the end of day on 24 November 2015, DMGT had 355.3 million shares in issue, including 19.9 million Ordinary Shares, and a further 7.7 million A Ordinary Non-Voting Shares held in Treasury and by the DMGT Employee Benefit Trust.

The Board is recommending payment on DMGT's issued Ordinary Shares and A Ordinary Non-Voting Shares of a final dividend of 14.9 pence per share for the year ended 30 September 2015 (2014 14.2 pence). This will make a total for the year of 21.4 pence (2014 20.4 pence per share). The final dividend will be paid on 12 February 2016 to shareholders on the register at the close of business on 4 December 2015.