Guardian Media Group slashes financial losses by over a third as subscriptions and one off contributions grow

A growing number of paying subscribers and one-off payments boosts the financial results for the parent company of the Guardian and Observer newspapers

The Guardian newspaper, owned by the GMG, is steadily clawing back costs despite operating at a loss (Reuters)

The publisher of the Guardian and Observer newspapers announced on Tuesday that it had slashed losses by over a third over the last financial year, thanks in part to a growing number of membership subscriptions and one off contributions form readers.

The Guardian Media Group (GMG) said it had reduced losses before tax to £200,000 in the year to 2 April from £173m in the same period a year earlier. Total revenue hit £214m, up 2.4 per cent from the previous year. Digital revenues rose by 15 per cent to £94.1m from £81.9m.

Despite operating at a loss, the group managed to increase its endowment fund to over £1bn, helped by selling off its stake in publishing company Ascential, formerly known as Emap.

Last year the group introduced a three-year plan to cut costs by 20 per cent, in its bid to break even by 2018/19.

Since 2016, the Guardian has added 230,000 new paying members, it said on Tuesday.

In 2014, the paper launched a three-tier membership scheme, offering subscriptions ranging in price from zero to £60 per month.

“Despite the challenging market conditions faced by all news organisations around the world, our three-year strategy is well on track to achieve its financial goals and to secure the future of the Guardian,” the group’s chief executive, David Pemsel, said.

“We are reducing our costs, growing new reader revenue streams, and developing our businesses in the US and Australia”, he added.