Guardian staff briefing reveals digital offsetting loss in print, but £7m to be cut from editorial budget
Guardian Media Group (GMG) is to make severe budget cuts it has revealed, having briefed staff about the progress of its digital first and open transformation to date, though they will not release a full annual report until August. These cuts will include a £7m slashing of the editorial budget.
A spokesperson at GMG confirmed that CEO Andrew Miller and editor-in-chief Alan Rushbridger told staff that Guardian News and Media’s (GNM’s) strategy 'was delivering' with digital revenue rising 16.3 per cent to £45.7 million in the financial year ending April 1 2012, largely offsetting the decline in print revenue for the first time.
Though a spokesperson confirmed that GNM is on course to make savings of £25 million by 2016/17 but as part of those savings GNM plans to reduce editorial costs by £7 million. Their spokesperson confirmed GNM had, this week, re-opened its voluntary redundancy package for editorial.
Their spokesperson added that, Guardian’s journalism and investment in the digital audience and revenue growth is at the heart of this strategy and following on from the 2011 announcement of a five-year transformation project GMG remains committed to cutting its cost base to a level that is sustainable in the long term.
Other key elements of GMG’s performance disclosed today included: online audience growth of 38 per cent to 67.8 million monthly unique visitors from March 2011 to March 2012, an 80 per cent increase in US audience following the opening of the digital-only US operation in September 2011.
The combined value of GMG’s cash balance and investment fund increased from £197.4 million to £225.8 million, these numbers exclude the sale of GMG Radio, and all of GMG’s major joint ventures and wholly owned portfolio companies grew in operating profit before exceptional items and amortisation. But, despite the high profile sale of GMG Radio earlier in the year the GMG Board took the decision to write down the carrying value of GMG Radio, prior to its disposal, by £54.2 million leading GMG to post a pre-tax loss of £75.6 million.