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 What, let gays get married? We must be bonkers
- 2 'Something passed underneath us, quite close': Airbus A320 has close encounter with UFO
- 3 Rocky Horror star Tim Curry 'suffers major stroke'
- 4 Lord of the Sings: Sir Christopher Lee, 91, to release heavy metal album
- 5 Exclusive: Woolwich killings suspect Michael Adebolajo was inspired by cleric banned from UK after urging followers to behead enemies of Islam
BMF is the UK’s biggest and best loved outdoor fitness classes
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Nook is donating eReaders to volunteers at high-need schools and participating in exclusive events throughout the campaign.
Get the latest on The Evening Standard's campaign to get London's children reading.
Win anything from gadgets to five-star holidays on our competitions and offers page.