Losses up at GMG's papers as austerity measures bite

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.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Sales Assistant / Buyer

£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...

Recruitment Genius: Customer Service Advisor

£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....

Recruitment Genius: Compliance Manager

£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...

Day In a Page

Greece says 'No': A night of huge celebrations in Athens as voters decisively back Tsipras and his anti-austerity stance in historic referendum

Greece referendum

Greeks say 'No' to austerity and plunge Europe into crisis
Ten years after the 7/7 terror attacks, is Britain an altered state?

7/7 bombings anniversary

Ten years after the terror attacks, is Britain an altered state?
Beautiful evening dresses are some of the loveliest Donatella has created

Versace haute couture review

Beautiful evening dresses are some of the loveliest Donatella has ever created
No hope and no jobs, so Gaza's young risk their lives, climb the fence and run for it

No hope and no jobs in Gaza

So the young risk their lives and run for it
Fashion apps: Retailers roll together shopping and social networking for mobile customers

Fashion apps

Retailers roll together shopping and social networking for mobile customers
The Greek referendum exposes a gaping hole at the heart of the European Union – its distinct lack of any genuine popular legitimacy

Gaping hole at the heart of the European Union

Treatment of Greece has shown up a lack of genuine legitimacy
Number of young homeless in Britain 'more than three times the official figures'

'Everything changed when I went to the hostel'

Number of young homeless people in Britain is 'more than three times the official figures'
Compton Cricket Club

Compton Cricket Club

Portraits of LA cricketers from notorious suburb to be displayed in London
London now the global money-laundering centre for the drug trade, says crime expert

Wlecome to London, drug money-laundering centre for the world

'Mexico is its heart and London is its head'
The Buddhist temple minutes from Centre Court that helps a winner keep on winning

The Buddhist temple minutes from Centre Court

It helps a winner keep on winning
Is this the future of flying: battery-powered planes made of plastic, and without flight decks?

Is this the future of flying?

Battery-powered planes made of plastic, and without flight decks
Isis are barbarians – but the Caliphate is a dream at the heart of all Muslim traditions

Isis are barbarians

but the Caliphate is an ancient Muslim ideal
The Brink's-Mat curse strikes again: three tons of stolen gold that brought only grief

Curse of Brink's Mat strikes again

Death of John 'Goldfinger' Palmer the latest killing related to 1983 heist
Greece debt crisis: 'The ministers talk to us about miracles' – why Greeks are cynical ahead of the bailout referendum

'The ministers talk to us about miracles'

Why Greeks are cynical ahead of the bailout referendum
Call of the wild: How science is learning to decode the way animals communicate

Call of the wild

How science is learning to decode the way animals communicate