DMGT expands online activities

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Wednesday 12 July 2006

DMGT expands online activities with three acquisitions

Associated Newspapers, the national newspaper division of DMGT, announces that it has recently made three online acquisitions as part of its continuing strategy of making investments to increase its exposure to key areas of the online advertising market, pertinent to Associated such as automotive, jobs, property, dating, and personal finance. All of the acquisitions will form part of the AN Digital network of online assets.

Following these acquisitions and others made by AN Digital in recent months, the AN Digital network now reaches an estimated 25% of all UK internet users. The division's revenues are running at an annualised rate of around £75 million and achieving a blended operating margin (before amortisation) in excess of 20%.

In the first of these, Auto Exposure Limited has been acquired which provides car dealers with services to publish and advertise their vehicle inventory online. The acquisition of Auto Exposure builds upon DMGT's recent acquisition of Data Media and Retail Limited, the UK's leading privately-owned operator of car classified portals including Carsource.co.uk, and continues the Group's strategy of increasing its presence in the online automotive advertising market.

Associated has also made two further acquisitions which will form part of the Group's Jobsite recruitment portfolio, both of which complement Jobsite's strategy of strengthening its position in key market verticals. Associated acquired Interbase Limited which operates "productionbase.co.uk" a subscription based recruitment website for freelancers in the television broadcasting and film production industries in the UK, representing our first move into the media and entertainment recruitment sector.

Finally Associated has completed the acquisition of The Appointment Limited, the company that runs the retail recruitment sites "inretail.co.uk" and "retailcareers.co.uk" as well as the retail magazine "The Appointment".

The combined headline valuation for these acquisitions was £17 million, with initial payments made of £12.3 million. Combined turnover for the three businesses for their latest financial year (unaudited) was approximately £4.5 million.

All acquisitions are expected to be earnings enhancing before amortisation in DMGT's current financial year.

Enquiries:
Peter Williams, Finance Director, DMGT 020 7938 6631
Andrew Hart, Managing Director, AN Digital, 020 7752 8675
Andrew Honnor, Tulchan Communications, 020 7353 4200