Daily Mail & General Trust unveiled plans to float property website Zoopla as the newspaper publisher's half-year underlying operating profits rose 21 per cent to 160m pounds.
DMGT, which publishes the Daily Mail and Mail on Sunday, said it would sell part of its 52.6% stake in Zoopla while investors including founder Alex Chesterman and Countrywide would also off-load shares, resulting in a free-float of at least 25%.
Analysts said the float could value Zoopla, which launched in 2008, at about £1.2bn, while DMGT's 52.6% stake may be worth about £575m.
Chesterman said Zoopla plans to launch more products and services after the float and to expand elsewhere in the property market, such as commercial property or overseas.
Zoopla is the latest company to cash in on a buoyant market for flotations, following in the footsteps of the likes of online takeaway service Just Eat, retailers Pets at Home and Boohoo.com, estate agent Foxtons and house-builder Crest Nicholson.
DMGT also outlined plans to sell its recruitment website Jobsite to German publisher Axel Springer later this year, which it said would allow its DMG Media business to focus on its newspapers.
Price increases offset declining circulation volumes
The group outlined the plans as it reported a 16% rise in adjusted pre-tax profit to £151m on a 6% increase in underlying revenue to £931m.
Newspaper circulation volumes continued to decline but revenue benefited from the February 2013 increase in the cover price of the Monday to Friday editions of the Daily Mail, from 55p to 60p.
A 45% rise in revenue for MailOnline in the period offset a 4% decline in print advertising revenue and 3% decline in circulation revenue.
The group said its B2B, DMG Information and DMG Events divisions did well, increasing underlying revenue by 11%, 15% and 28% respectively.
DMGT forecast annual results in line with market hopes, but warned that the Daily Mail's February 2013 cover price increase, higher costs and the strong pound would hit the second half results.
Chief Executive Martin Morgan said: "Overall therefore, the outlook for the group remains in line with market expectations."
Royal Mail reported a two per cent rise in annual revenue to 9.45bn pounds in its first full-year results since its London flotation last October but warned of a challenging outlook and considerable future impact from direct letter delivery.
The company said parcel deliveries were the biggest contributor to growth in the year ended March 30th 2014, accounting for 50% and offsetting a fall in letter delivery revenue.
Revenue in UK Parcels, International and Letters (UKPIL) increased 2% to £7.7bn with letters down 2% and parcels up 7%.
General Logistics Systems (GLS) revenue was up 7% to £1.6bn and revenue from other businesses came to £18m.
Pre-tax profit climbed to £363m from £304m a year earlier, a 19% increase.
The costs of transformation rose to £241m from £195 as the Royal Mail worked to address the falling letter volumes and manage increasing parcel volumes in a competitive market.
Since 2003, more than 50,000 people have left the UK business, with 12,000 leaving in the last four years.
In March the company cut 1,300 jobs, mainly within the management team.
"We recognise that this change is tough on our people," the group said. "But, we must continuously improve our efficiency. This is a key way to sustain the universal service and secure good quality jobs for our people."
Looking ahead the firm warned of increasing challenges in the parcels and letters markets in the UK.
In letters it warned that, without regulatory intervention, the estimated impact of rival TNT Post UK's plans for direct delivery could reduce its revenue by over £200m in 2017-18.
However, the company said key value drivers of single digit revenue growth, margin expansion and underlying free cash flow growth remain the objectives for the 2014/15 financial year.
Broker Panmure Gordon said: "Longer term prospects remain attractive, as we expect an element of regulatory intervention to protect RMG's need to achieve a commercial return on its activities. Dividends are likely to rise, partly reflecting a likely rise in the payout ratio. Short term competition concerns, however, are likely to be a drag on the share price in the near term."