DMGT in southern counties expansion

By This Is Money
Updated: 05:27 EDT, 6 July 2007

Trinity Mirror said today it had agreed to sell some of its regional titles to the local media division of Daily Mail and General Trust for £64.15m.

The Daily Mirror owner will dispose of three businesses, including East Surrey and Sussex Newspapers, which publishes the Croydon Advertiser and Surrey Mirror.

The other divisions are Kent Regional Newspapers, which publishes six paid for weekly newspapers including the Folkestone and Dover Herald, and Blackmore Vale Magazine, a free distribution product published in Dorset.

Trinity Mirror said in December it would sell the Racing Post and some regional titles, covering newspapers in the Midlands, London and the South East.

It plans to concentrate resources on national newspaper titles, such as the Daily and Sunday Mirror, its digital operations and key regional titles in Scotland, northern England and Wales. The sale process is on track to be completed in the third quarter of the year.

The newspapers sold in today's agreement will be added to Northcliffe Media, the Daily Mail & General Trust's local media division.

DMGT said the new titles and websites were complementary to Northcliffe's existing portfolio. The South East is currently the division's smallest region.

Over the last 16 months, Northcliffe has focused on becoming a local media organisation through the integration of its digital and newspaper publishing activities. It has also improved operating efficiency, while recent disposals have included Aberdeen Journals, Northcliffe Retail and its 25% shareholding in fish4.

Michael Pelosi, managing director of Northcliffe Media, said: 'Over the last year the transformation of Northcliffe has been dramatic. We believe that the division has an excellent future as a provider of high quality local media content and services.

'Today's acquisitions strengthen our publishing reach in a region demonstrating strong economic growth where digital opportunities are particularly attractive.

'We are acquiring strong products which are at the heart of their local communities and are looking forward to working with our new colleagues.'

DMGT said Northcliffe continued to record slowly improving advertising revenues which were up by 0.3% in the quarter to the end of June, compared to a decline of 1% in the previous quarter.

Recruitment advertising grew by 5.5% over the same period and property was up by 7.5%.