LONDON (ShareCast) - The downturn is hurting the UK consumer media businesses at Daily Mail and General Trust, although the newspaper group’s full year profits matched recent guidance.

Profit before tax, exceptional items and amortisation and impairment of intangible assets for the year ended 28 September fell 9% to £262m from £288m in 2007 on revenue up 3% to £2.3bn.

In September, the group warned that adjusted results would be at the lower end of market expectations of between £257m and £279m.

It said the new financial year has started with very challenging economic conditions, particularly in the UK, with consumer media businesses continuing to suffer, although business to business divisions are trading well thanks to significant subscription revenues.

Revenues in October were ahead of last year at its Euromoney business and forward revenues for the first quarter are more than a year ago, but sales for the past six weeks have shown signs of weakening.

“Although the worsening economic conditions had an adverse impact on the newspaper and property businesses, our B2B divisions continued to perform well,” said boss Martin Morgan.

“The short term outlook remains difficult and we are taking decisive action to defend profitability,” he added. “However, the group's strong cash flow will also allow continued selective investment to ensure our businesses achieve their full potential."

Almost £100m of revenue and cost initiatives have been put in place to offset anticipated advertising weakness and higher newsprint prices.

The final dividend is maintained at 9.9p a share.

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