Telegraph profits slide but outlook brighter
Wednesday 28 February 1996
Pre-tax profits declined to pounds 35.5m from pounds 45m a year earlier, on turnover marginally ahead at pounds 255m, as shares declined 16p to 463p. The drop would have been even greater but for a pounds 7.5m exceptional gain on the sale of a stake in Carlton Communications during the year.
But Stephen Grabiner, managing director, said the company "had turned the corner" and that the current year would see a marked improvement.
Conrad Black, the company's Canadian chairman, added: "1995 was a year of unrelenting challenge for the Telegraph but, at the end of it, the company emerged fitter and stronger."
Analysts supported the company's upbeat message on current trading, pointing to the improving profit trend quarter to quarter in 1995. From a low point of just pounds 500,000 in the third quarter, pre-tax profits hit more than pounds 9m in the final three months of the year, up from pounds 2.4m in the comparable period in 1994.
Mr Grabiner said he expected the newsprint price increases of the past 18 months had reached their height, and that further rises were unlikely. At the same time, the cover price war launch in 1993 by Rupert Murdoch's News International is all but over, he said.
He expected that newspapers would siphon some of the increased revenues from higher cover prices into bigger promotional budgets. "The price war is becoming a promotion and marketing war," he said.
Advertising at the start of the year showed a mixed picture with classified and financial recovering strongly but display well down year on year.
- 1 Alan Rickman admits editing 'terrible' script with friends in Pizza Hut behind backs of writers on Robin Hood: Prince of Thieves
- 2 Rarest Beanie Baby of them all could be sold for £62,500 on eBay
- 3 Professional big game hunter Ian Gibson crushed to death by elephant during hunt
- 4 Farmer told to tear down mock-Tudor castle after hiding construction behind hay bales
- 5 Rebecca Francis accuses Ricky Gervais of using 'influence' to target female hunters after receiving barrage of death threats
Migrants crossing the Mediterranean: Pope Francis joins calls for EU action on boat refugees
Yemen crisis: Meet the child soldiers who have forsaken books for Kalashnikovs
Alan Rickman admits editing 'terrible' script with friends in Pizza Hut behind backs of writers on Robin Hood: Prince of Thieves
Rarest Beanie Baby of them all could be sold for £62,500 on eBay
Isis in Afghanistan: Group claims responsibility for Jalalabad suicide bombing that killed 35
The only black face in the Ukip manifesto is on the page about overseas aid
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
iJobs Money & Business
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...
£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...