Guardian losses remain unchanged at £20m in the year to 29 March
A 20 per cent rise in digital sales at Guardian media Group has failed to offset continued declines in print circulation and ad revenue at both the Guardian and Observer newspapers, resulting in a £20m loss for the year to 29 March – the same as the year previous.
Describing the loss as an ‘investment in the future’ the publisher asserted that its strategy of investing in editorial, commercial activities and international expansion would likely incur greater losses in future – but would ultimately bear fruit.
GMG editor-in-chief Alan Rusbridger, said: “Thanks to our balance sheet transformation, we can look forward to a period of targeted investment in the world-class journalism, digital excellence and increasingly international readership that is now the hallmark of the Guardian.”
Chief executive Andrew Miller added: “You’ll see the losses increase over the next four or five years as the revenue lags behind. We’re investing in more mobile-facing products, more video-formatted content which is expensive, and more international growth, particularly in America.”
The Guardian has ample room to stomach such losses courtesy of an £800m cash pile amassed largely through the sale of a £600m stake in Trader Media Group last year. It also now has a successful New York office which has pushed its US audience above that of UK based readers amongst its 120m monthly uniques.