Losses up at GMG's papers as austerity measures bite
Tuesday 02 August 2011
Guardian Media Group yesterday warned that it would continue to face "challenging" trading conditions as the group's operating losses widened further. GMG's newspaper business suffered badly, with operating losses, before one-offs, at Guardian News & Media, the publisher of The Guardian and The Observer, coming in at £38.3m for the year to the end of March against £37.8m the previous year.
The losses would have been even higher if not for cost cuts of more than £26m last year at the newspapers – revenues declined from £221m to £198.2m.
The group said it had suffered a "sharp decline in recruitment advertising" as a result of economic difficulties and particularly cuts in government spending, which have seen tens of thousands of public sector jobs axed and, as a result, the bottom falling out of the market for recruitment ads.
While digital revenues weredescribed as "robust" they failed to offset the decline in revenues from the newspapers.
The Guardian's editor, Alan Rusbridger, has committed to a "digital first" strategy but has not followed other titles in introducing an online paywall for the group's papers.
Overall group revenues, including shares in joint ventures and GMG's other business, declined to £255m from £280m. At the pre-tax level, the group made a small profit of £9m against a loss of £171m last time.
Andrew Miller, who replaced Carolyn McCall as GMG's chief executive after the latter's departure for EasyJet, warned that "reshaping our cost base" would be a "critical element" of the company's new strategy.
GMG's annual report revealed that Mr Miller, who assumed the role of chief executive on 1 July, was paid £572,000. He waived his entitlement to an annual bonus. Mr Rusbridger was paid £455,000 against £411,000 the previous year, when he voluntarily gave up 10 per cent of his salary.
- 1 Finland schools: Subjects scrapped and replaced with 'topics' as country reforms its education system
- 2 The West has it totally wrong on Lee Kuan Yew
- 3 #FreeTheNipple: Women in Iceland bare breasts in solidarity with trolled student
- 4 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
- 5 Zayn Malik quits One Direction: Hundreds of workers request compassionate leave following band member's exit
Germanwings captain Patrick Sondenheimer tried to break into locked cockpit door 'with an axe' as plane was descending
Amanda Knox murder conviction: Italian court overturns verdict for US student and Raffaele Sollecito in the killing of Meredith Kercher
Saudi Arabia says it won't rule out building nuclear weapons
The battle for the Middle East's future begins in Yemen as Saudi Arabia jumps into the abyss
#FreeTheNipple: Women in Iceland bare breasts in solidarity with trolled student
Nigel Farage brands LGBT activists 'filth' and 'scum' and accuses them of scaring away his children after they invade his local pub
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Russia threatens Denmark with nuclear weapons if it tries to join Nato defence shield
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Germanwings plane crash: Co-pilot Andreas Lubitz wanted to 'do something people would remember him for'
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...