and General Trust plc

Thursday 28th January 2016, 08:00 GMT

Q1 Trading Update

Stephen Daintith, Finance Director

Morning ladies and gentlemen and welcome to the conference call covering our first quarter trading update. I am Stephen Daintith, DMGT’s Finance Director, and I am joined by Adam Webster, Head of Management Information and Investor Relations.

So today’s conference call is a chance to pull together the key dynamics behind our trading over the first quarter of our financial year, to the end of December 2015. As usual, there will be an opportunity at the end of the call for you to ask any questions.

So, overall trading over the first three months of our financial year has been in line with our expectations. The revenue and profit outlook for the full year, provided as guidance at our Full Year Results in November, remains unchanged.

Group revenues for the period were up by 1% on an underlying basis. Reported revenues were up 5%, mainly due to factors influencing our B2B businesses.

Overall, our B2B companies generated 2% underlying revenue growth in the quarter. Our reported B2B revenues, which were up 9%, have benefited from the strengthening US dollar, acquisitions and timing of events over the period. More detail on B2B dynamics to follow.

In summary for DMG media, underlying revenues were 2% lower in the first quarter, with declines in circulation and print advertising being partly offset by digital advertising growth.

Portfolio management activity has continued in the new financial year, with bolt-on acquisitions, primarily for DMGI, totalling around £20m, and further refinements to the consumer media portfolio.

In October, ETSOS was acquired; this is a UK provider of conveyancing services and will complement our Landmark and SearchFlow business. In December, Hobsons, our DMGI education business, acquired PAR Framework, which provides models to improve student retention and graduation rates in US higher education institutions.

Within the consumer media portfolio, DMG media disposed of its online business, Wowcher, to a newly formed company and DMGT will retain around a 30% stake in the new operation. As highlighted in today’s statement, net proceeds from the disposal of Wowcher and the investment in the new company totalled £29m.

In November, DMGT sold its stake in Local World to Trinity Mirror for £73m, and next week Daily Mail Australia will become a wholly owned subsidiary of MailOnline, as a result of acquiring a 50% stake from Nine Entertainment Company.

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As is usual at this time of the financial year, net debt rose and stood at £723m, £21m higher than at the start of the quarter. As well as the seasonal cash outflows, which you are all familiar with, there were outflows of £31m relating to payments into the Group’s main Pension Scheme. In addition, with our continued balanced approach to capital allocation, we bought back £6m in shares as part of a new rolling share buy-back programme, announced in November 2015, at an average cost of £7.02 per share.

Now to give you some more detail on each of our businesses:

Within B2B:

RMS’s underlying revenues were up 2%, whilst reported revenues increased by 6% due to the strengthening US dollar. The underlying revenue growth is in line with our expectations and has been achieved against a consolidating client environment.

In terms of model development, all three of the prioritised HD models for 2016 - European Flood, Japan Typhoon and New Zealand Earthquake – have now been developed and RMS is working closely with a select group of clients that are testing and evaluating the results of these models.

RMS remains on track to release 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.

DMG information delivered a good level of 6% underlying revenue growth in the first quarter. Reported revenues were up 13%, reflecting both acquisitions and the benefit of the stronger US dollar.

In terms of the individual sectors within DMGI, Genscape – our energy business – delivered double digit underlying growth. The property portfolio covering our US, UK and EMEA businesses, delivered underlying mid-single digit revenue growth and revenues were stable, on an underlying basis at Hobsons, our education business.

We are anticipating that the growth rates for both our property and education businesses will pick up over the remainder of the year, and hence our reconfirmation of the full year underlying revenue growth guidance which we anticipate to be in the region of 10%.

DMG events delivered strong underlying growth of 8%. Three of our four large events occurred in the first quarter, which strongly influenced the reported revenue growth of 34%. In terms of how each of these large events performed, Gastech’s revenues were in line with the previous events, while Big 5 Dubai and ADIPEC increased both attendances and revenues.

Euromoney released their Q1 statement earlier today, stating that underlying revenues declined by 6%, with reported revenues down 5%. In November, indicated that the challenging market conditions and revenue trends experienced in the second half of the financial year 2015, when revenues declined by an underlying 5%, were expected to continue, and that has indeed been the case. The challenging financial markets, the weakness in the oil price and uncertainty over China, in particular, are expected to continue to have an adverse impact on Euromoney’s activities in the banking and commodities sectors.

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Euromoney are hosting a Capital Markets Day on the 9th March, where a strategy update will be provided by Andrew Rashbass, the new Chief Executive.

Moving on to our Consumer business:

DMG media’s underlying revenues were down 2% in the period compared to last year, with declines in circulation and print advertising revenues being partly offset by the growth in digital advertising revenues.

The 4% decline in circulation revenues reflects declining sales volumes, a dynamic you are familiar with given the continued weak market conditions. Importantly, however, the Daily Mail and continued to increase their market shares.

Looking at advertising, total underlying advertising revenues at DMG Media were down 2% in the quarter, with a 12% decline in print advertising being largely offset by the 32% growth in digital advertising.

Reported revenues across DMG Media declined by 1%. The impact of the disposals of Wowcher in November 2015 and Jobsite in October 2014 were more than offset by the benefit of the increased reselling of newsprint.

In terms of measuring the progress of the DMG Media business, I would highlight several metrics:

Print advertising continues to be relatively variable. After a fairly weak October and a strong November, print advertising was quite weak in December.

Across the Mail businesses, advertising revenues were down 3%. MailOnline’s digital advertising revenue growth of 27% to £23m partly offset the 14% decline in print advertising revenues at the Daily Mail and the Mail on Sunday over the first quarter.

At MailOnline, the average number of global monthly unique browsers during the first quarter was 220 million, up 12% on last year, and the average number of global daily unique browsers were 13.7 million, up 11% on last year. In terms of revenue performances across MailOnline, the UK revenues were up 17% and US revenues were up 66%, reflecting their strong growth trajectory.

In terms of current trading, for the four weeks since 27th December, total underlying advertising revenues for DMG Media are down 12% on last year. In the relatively short time period, there has been volatility, especially within print advertising, which has been partly offset by the continued strength of MailOnline’s advertising revenue growth performance.

We have also announced this morning that there will be a rise in the cover price of the Monday to Friday issues of the Daily Mail from 60 pence to 65 pence with effect from next Monday, the 1st February.

Overall, for the full year, DMG Media still expects to deliver stable underlying revenues, in the -2% to +2% range.

So, in conclusion, trading in the first quarter has been in line with our expectations and Full Year revenue and profit guidance remains unchanged.

I would now like to hand over to you for any questions that you may have.

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Thank you.

Question and Answer session

Question 1

Nick Dempsey, Barclays

Good morning Stephen, I’ve got three questions.

So, first of all, in terms of the -12% for the four weeks, I wonder if you could give us the split between print and online?

And then also on advertising, was Wowcher’s organic growth included in your Q1 number, because obviously that was growing pretty well and now it’s not going to be part of your revenue growth?

And then in terms of cover price increase, how do you think about the drop through of that? Are you going to have to put a bunch of promotion through, put more content into the product? That’s never quite dropped through in the way that some people hoped in the past.

And my last question just on the Hobsons. Why is that flat at the start of the year? We’ve seen this pattern before. Is it that some parts of the business turn up mostly in the second half and they are growing more, or is there an overall slowdown that’s different?

Stephen Daintith

Okay, fine. So the print digital split in the first four weeks print was down 20%, which is, one might argue, the most scary number, but on the other hand, I’ll just reinforce it’s a very short period of four weeks, and also there are one or two weeks, particularly the first week of January, which is a very light week. So I said this, when it’s good news, and also when it’s bad news, don’t read too much into those too short periods of time. But anyway, four weeks’ print was down 20%, and digital was up 11%, and that’s against the first quarter print down 12% and digital up 32%.

Wowcher is not in those growth numbers, so those underlying numbers are excluding Wowcher that we’ve just quoted.

The cover price, the way I think about the cover price, what have we got? We’ve got about eight months or so benefit in the year of the cover price right. I think by the time you take off retail margin, wholesale margin and then a bit of marketing spend, you should look to about a £5m or so benefit for fiscal ’16, versus fiscal ’15, and that’s probably the right number to use, which as, I think I pointed out today, sort of mitigates, or helps mitigate, certainly, the current print advertising trends.

And then finally, Hobsons, yeah, we saw this, if you recall, last year as well. This is a timing issue with Hobsons and we’re still very confident around the growth rates that we’re looking for for that business, double digit growth rate for Hobsons, and we expect to pick up in the second quarter and then the second half of the year, so we’re still confident around the outlook for that. And it tends to be around just perhaps one or two contracts appearing in the first quarter of last year and not in this year, so I wouldn’t read too much into that. A somewhat depressed number for the first quarter and I’m still confident on the outlook for the year.

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Question 2

Steve Liechti, Investec

Morning guys. Just on RMS and RMS(one), so I’m absolutely right. In terms of the HD models, they’re developed and you’re working with clients, is that in line with your comments previously about they’ve launched and they’re out there? And then obviously I’m just trying to figure out, they’re not revenue-generating yet, and confirming they’re not revenue-generating yet, because if you’ve not got RMS(one) platform integrated into your business, you’re not actually going to be able to run those models, are you? Just give me some colour there.

Stephen Daintith

Yeah, and you probably may have some more questions, so I’ll come back to the other questions. Give me all your questions at once.

Steve Liechti

Okay. The other one is on Genscape, specifically, still growing well, and are you concerned about that given all the volatility in emerging markets, commodities and stuff like that, i.e. is that growth sustainable? Give me some comfort there.

And then I just wondered if I could push you slightly in terms of Big 5 and ADIPEC, in terms of a harder number for either revenue or attendance or both?

Stephen Daintith

Sure, I’ll do that. So RMS, yeah, this is in line. We’ve purposefully, in previous updates, chosen our words very carefully. So right now, there is a selection of clients, joint development partner clients of RMS that are working now with their data, with the models, in what we call testing and evaluation environments. So it’s not revenue- generating yet, but it’s proving the case for the models, and what we are working towards sometime this year is what we would categorise as a general release. And the general release is when, then, the models are available to a broader set of clients and will be on a revenue-generating basis.

So there are a series of milestones over the next, shall we say, six, eight, ten months that get us to that milestone, which we’re working towards. And I think we’ll all be delighted when we get there and you’ll hear more, I expect, in May at the half-year. And also, I would imagine, you’ll be picking up some news from the RMS Client Conference that they have in May, in the second week of May this year in Miami, and I’m sure there will be quite a bit of comment there about what Hemant will be announcing on the progress that’s been made on RMS One. But just to reaffirm, it is on track in line with our earlier comments and we are looking to that revenue- generating event sometime in 2016.

Genscape, no, actually, not too concerned about the growth. I mean we do find that when oil or energy prices, where there is volatility, that that actually plays well to a business like Genscape, where it’s even more important to be kept up to date on energy trends.

And Genscape is not just covering oil, it covers a variety of energy these days, it has a solar business, it looks at storage and transportation of various energy sources, so it

5 has a variety of information flows around energy generally, although oil of course being probably the most important but what we’re seeing is continued very good growth in Genscape, as reported today.

And then the Big 5 numbers, let me give you some numbers there, so Big 5, underlying revenue growth in Big 5 was 14% up, and I don’t have the delegates’ numbers here, but yes, 14% revenue growth year on year, pretty good performance. And was it just Big 5 you asked me about?

Steve Liechti

Well, while you’re there, ADIPEC obviously as well?

Stephen Daintith

Yes ADIPEC was up 7%, so notwithstanding the fact that… Oh, Big 5 sorry, attendance was up 5% and ADIPEC attendance was up 2%, so some pretty good performances from those big events actually. Gastech is the one you haven’t asked me about, underlying revenue growth was down slightly at 2%, pretty good really in light of things and Gastech yes, so Gastech was a pretty strong performance as well, a pretty resilient performance.

So we’re very pleased with the outcome of those, and I guess it sort of reinforces the importance of our strategy of having sort of leading trade shows, that if you are going to go to one event then to go to our events is the key event that you go to. So it’s incredibly helpful having those strong businesses.

Steve Liechti

Great. Stephen, did you have an attendance number for Gastech while you’re giving them?

Stephen Daintith

Yes I did actually, let me just find that.

Steve Liechti

Because you said underling revenue for Gastech is minus two didn’t you?

Stephen Daintith

Yes, it moved from South Korea to Singapore which is a more expensive location and had a bit of a dampening effect on attendance numbers but the cost per attendee was higher so that’s how we managed to maintain our revenue number, so it’s 28% smaller numbers than compared to the South Korea event, which is a less expensive event.

Adam Webster, Head of Information and Investor Relations

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And now we’re still significantly up on the London event which was the previous one, so the delegate numbers, attendance numbers, do vary quite a bit depending on location.

Stephen Daintith

On the location, yes exactly.

Question 3

Chris Collett, Deutsche Bank

Good morning. I’ve just got a couple of questions. One was just to come back to Hobsons and why you expect the growth rate to improve in the second half. Is that really down to the expected improved growth in Naviance and Starfish?

And secondly, just why do you expect the rate of growth in the property business to pick up later in the year? Is that similar to the reasons that you were providing last year?

And then lastly, some great growth in MailOnline, particularly in the US, does that mean that you’ve fixed what you’ve previously described as your Madison Avenue problem or is there some one-off there?

Stephen Daintith

Okay, let’s start with MailOnline and work backwards, so MailOnline in the US, so yes, some really nice numbers there actually, I mean just to be a bit more specific about it we reported the MailOnline that we grew our revenues by 66% in the quarter which was great, and last year on a full year basis just as a reminder with £18m MailOnline US, so growing 66%.

And we’ve always been saying that the US is our priority for growth for MailOnline, the UK is a very strong market and still growing nicely, core UK was £46m last year and we reported this morning 22% growth, but we’ve been working very hard during 2015 on both trade and brand awareness and that would seem to be reaping the rewards now with the sort of growth that we’re reporting and the sort of marquee names that we’re getting into advertise on MailOnline in the US.

We’re also pleased with how Elite Daily is performing, the Elite Daily has grown by 211% versus the same quarter last year on an underlying basis and okay, it was only £6m last year but it’s proving to be a very important asset for us and part of the reason why we bought Elite Daily was to strengthen the advertising pitch with the audience, the combined audience for Elite Daily and MailOnline in the US, and that seems to be working very well for us. So very pleased with progress in the US.

So I think when you’re looking at property there is exposure to volumes, residential volumes in the UK are a factor for Landmark and SearchFlow. UK commercial volumes are a factor for Landmark and US commercial volumes are a factor for EDR. We aren’t expecting any significant changes in current volumes, the most significant change to

7 the full year compared to the Q1 performance is that we’re expecting an improvement from SearchFlow.

So we’ve invested in new products, improving the user experience with SearchFlow and we’ve got a new management team in place as well, so we are expecting a turnaround there as these new products come into revenue generation mode and get launched and get used by customers. So that’s very much the plan for SearchFlow for the final three quarters of the year. So that’s where we’re expecting the pick up to take place.

And Hobsons, Hobsons is not a pure subscription business, there are elements of it that are one off revenue streams, unlike Genscape which is largely if not entirely subscription based. It is only the first quarter as well and a relatively small number, so you do have the power of small numbers here having quite a significant impact, it doesn’t take too much to shift the dial in terms of revenues. So put those together and then typically Hobsons tends to have a larger weighting in its revenues towards the second half than the first half and that will have an impact as well.

So putting all those things together we’re still confident around the double digit growth rates, so the 10% growth rate for DMGT and the nicely impressive growth rate for education that we’ve seen in recent years. And as you rightly pointed out, driven mainly by the continued growth of Naviance and Starfish.

Question 4

Matthew Walker, Nomura

Thanks very much, just two questions please. The first is on Genscape, you said it’s mostly or nearly all subscription. What risk do you see from smaller clients maybe coming under financial pressure or is there any consulting revenue in that business because I think we’ve seen some weakness in Woodmac on that basis?

The second question’s on Euromoney, I had a feeling that they did flag that things would be weak, particularly in the first half. I had a feeling that things were supposed to pick up in the second half for some reason but in the outlook statement they’ve given today there’s no hint of things improving in H2, so can you comment on that?

Stephen Daintith

Okay, so Genscape. Well, Genscape, actually client numbers, I mean it’s largely a US business as you know, its client numbers have grown by 25% over the year, so it now has 440 clients in the US, 25% growth and the yield for clients has actually grown by 7%, so it’s doing very well actually in the US. Europe’s coming under some pressure, the yields are much lower there, I mean the yields in Europe are a very small fraction of the yields in the US where it’s a less established business but 690 clients in Europe which is pretty much flat year on year, so very little growth there.

So US business doing nicely, and I think that’s a combination of the acquisitions and the increases in the product enhancement we’ve put in and also the new products through all the various acquisitions that Genscape has done as well, and it’s meant that we can sort of cross sell to the Genscape existing client base the new businesses

8 that we acquire and grow revenues and yields accordingly. So that’s worked very well for us in fact.

Euromoney, yes I think, look, if I were in Euromoney’s shoes I think I’d be pretty cautious around the outlook for the full year. I mean last year second half revenues were down what, 5%, first quarter down 6%, I think you’d be pretty bold to be too optimistic about the balance of the year given the tough market conditions. I think Euromoney are expecting with those sorts of numbers that the comparatives are going to be getting easier, but right now that business is being dragged down, it’s almost a sort of a game of two halves, the subscriptions business is growing at a couple of percent and proving pretty resilient, and that represents just over half the revenues, but then you’ve got advertising revenues down 6%; sponsorship revenues from events down 7%; and then delegate revenues, and this is largely the training businesses that Euromoney has down 19% for the quarter year on year.

And those segments are hurting Euromoney hard, they’re much more sort of discretionary elements of spend for Euromoney’s customers and they’re choosing to send smaller numbers of delegates to events, if at all, and sponsorship revenues are coming under pressure as investment banks continue to come under pressure.

So yes, challenging market conditions for Euromoney, it remains a very strong business, highly cash generative, great management team and we’ve been working with Andrew on his new strategy which he’ll be talking all about on 9th March and I hope you’ve received your invitation because we’re encouraging those analysts that cover DMGT to attend that one as well where I think Andrew will have some very exciting ideas to present.

Chris Collett

Right, well I look forward to that, thank you very much.

Question 5

Alex DeGroote, Peel Hunt

Thank you very much and morning chaps, Happy New Year, a bit belatedly but there we go. Two questions from me guys. Rather than getting bogged down in too much divisional micro detail, just basically on EPS momentum. About June, July last year I think most of us were probably looking for let’s say 67p to 70p of earnings for FY16, September yearend?

Stephen Daintith

Yes.

Alex DeGroote

And then through the second half of last year I think it’s fair to say most of us have probably ended up in the mid-50s, there or thereabouts?

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It’s a pretty hefty downgrade. Are we saying today in the statement that we are basically happy that that negative momentum has ceased, at least as far as we can tell? Is that the message we’re trying to get across?

Stephen Daintith

Yes, I mean clearly we’re not at all pleased with that momentum either and I think as you point out, back in April/May of last year we were thinking very much the same, that Euromoney was a growing business back then, print advertising was in a manageable decline at about 5% or so and digital advertising growth was exceeding it and there were lots of good reasons to feel more cheerful. I think what’s happened since is that print advertising has accelerated its decline down to a run rate now of what, 12% or so for about nine, ten months in a row now and then at the same time Euromoney, its revenues are declining at 6%.

And print advertising and revenue and the Euromoney revenue, you put those two revenue streams together, that represents close to 30% or so of Group revenues, so you’re finding quite a strong tide in respect of those two revenue streams. We don’t expect print advertising to continue to decline at these rates and we are expecting with the comparisons that we’re looking at a stronger second half and we are confident that Euromoney remains a strong business with great products in great markets and will recover when the market starts to turn, but these are choppy waters and therefore I think the mid-50s earnings per share is a better guide than the mid-60s that certainly we were working towards as well.

So I think it’s wise to be cautious at this stage, we’re happy with where it is and let’s see what the future holds, and we are expecting an improvement but right now we are where we are with the numbers and in the markets that we’re in and hence the numbers that we’re reporting today.

Alex DeGroote

Great, and do you get a little bit of a helpful tailwind from the dollar and forex?

Stephen Daintith

We do, for about every one cent movement or so versus the average at the previous year we get about a million pounds or so benefit, so last year’s average was 1.54 I think, yes 1.54, and well you know where we are today so that’s the sort of benefit that we can see if the average rate is let’s say it’s about a million pounds for every one cent movement.

Alex DeGroote

Is that a million to EBIT, Stephen or to PBT or a million what?

Stephen Daintith

That’s a million to PBT which pretty much translates to EBIT as well.

Alex DeGroote

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Got it. Great, thank you chaps.

Question 6

Nick Dempsey, Barclays

Yes sorry Stephen, just when you talked about Elite Daily, MailOnline, I got my calculator out. So was the Elite Daily organic growth included in your organic in the first quarter, because I think you bought it in January last year? First question.

Stephen Daintith

Yes the answer is yes, it was, yes.

Nick Dempsey

And then did it drive all of that 66% growth if it was up 220%, as in was MailOnline US flattish within that 66%, because as far as I’m working out six out of 18 times 220 is about…

Stephen Daintith

Yes, let me give you the splits all together. So MailOnline US grew 66%, Elite Daily grew 211% and MailOnline plus Elite Daily grew 94% combined.

Nick Dempsey

Perfect, thank you that’s what I was after.

Stephen Daintith

It’s a good number, it’s great growth, I mean we’re very pleased with that.

Question 7

Alex DeGroote, Peel Hunt

It’s just a management question actually, probably one for Stephen. To cut to the chase, would you be interested in succeeding Martin Morgan as CEO? You’ve been at the company a long time, I think you have a lot of sponsorship from the investment community; is this something that you would see yourself putting yourself forward to?

Stephen Daintith

Look, I’m delighted to be mentioned as a possible candidate, and of course I’d love to do the job. But at the same time we have several really strong candidates within the Group; we’ve got some terrific people around DMGT. And we are carrying out an external search as well, which I think is very sensible and good governance. So, let’s see how it unfolds.

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But I think also Martin’s achieved an awful lot over the last seven years. When you look at where we’ve come from: the quality of our earnings, the growth of our earnings per share, the very clever portfolio management that we’ve done, so he’s going to be a tough act to follow. But look, we’ve got very good people around. I’m sure DMGT will make the absolute wisest of choices, and I look forward to working with whatever the new colleagues there are in DMGT in the future.

Alex DeGroote

That’s very clear, thank you.

Question 8

William Packer, Exane

A couple from me. Firstly, it may have been said already, but could you confirm of the -12% for the last five weeks in ad trends, I understand printed -20%, can you just confirm what digital was, and then within digital how the US and UK did?

And then secondly, your Q1 trends would suggest a sharp improvement in the monetisation of your traffic on the MailOnline, with traffic up 15% but revenue up significantly more than that. Could you just confirm why has that monetisation improved when perhaps historically the opposite trend is true?

Stephen Daintith

In the first four weeks of the year print was down 20%, digital up 11%, 12% overall, 12% down. First quarter print down 12%, digital up 32% and therefore the total down 2% on underlying advertising.

First four weeks in that split, I’ve quoted the print numbers already, so MailOnline in total was up 10% for the first four weeks, so still good growth there although slightly down on the 27%. MailOnline in the UK grew 7%. MailOnline US and Elite Daily combined grew 25%. MailOnline US grew 24%. Elite Daily grew 26%.

So, those are the splits for the first four weeks of the year. So, still good growth momentum in MailOnline in the first four weeks, notwithstanding what’s clearly been a tricky start generally for advertising.

MailOnline US yes, that is exactly right: that is the trend. It goes back to my earlier comments around the work we’ve been doing with trade, particularly the advertising agencies; the consumer work that we’ve been doing with the brand, adverts around MailOnline, but also the TV coverage that we’re getting of MailOnline.

And if we do have an Investor Day later on this year for DMGT I would expect to get or use an opportunity to talk about the amount of TV coverage. We get much more coverage in the US than we get in the UK, with MailOnline regularly referenced on chat shows, news stations and so on.

And of course we have got the potentially exciting development of the MailOnline TV show this autumn as well, which will only enhance the brand in the US. So, we’re very

12 pleased with the progress in the US. We always thought that it was going to be the growth engine for MailOnline generally, and it’s proving to be the case at the moment. But we shouldn’t forget that the MailOnline UK is still reporting very strong numbers, and indeed even in the UK matching if not exceeding audience growth. So, very encouraging there.

Question 9

Ciaran Donnelly, Liberum Capital

Stephen, just a very quick one from me. On the share buy-back programme should we take the £6m going forward as a run rate or is it likely to accelerate further into the year?

Stephen Daintith

No, it’s certainly not a run rate. I think, as mentioned previously, M&A remains our priority over buy-backs, and there are one or two quite exciting things that we are looking at right now, and in the light of that we are just holding back on the share buy- back whilst we explore those opportunities. So, it will be a rolling programme. I wouldn’t expect there to be a routine or regular pattern to it; it will very much depend on what our M&A requirements look like. And, as I’ve just mentioned, there are a couple of things we’re looking at that are just causing us to pause on the share buy- back for a while.

Thanks everybody and I look forward to seeing many of you, if not all of you, on 9th March. In the meantime have a very good day. Thank you very much.

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