Guardian Media Group expects to continue to make ‘significant operating losses’ at Guardian News and Media, says CEO as it reports pre-tax losses of £75.6m.
Having published its annual report this morning, which reported the company's financial year, ended 1 April, GMG CEO Andrew Miller was quoted as admitting to further losses ahead of GNM, with
the company having seen a slight fall in revenue from last year’s total of £255.1m to £254.4m.
Andrew Miller said: “We will continue to see significant operating losses and cash consumption at GNM in the current year as we invest in future growth and long-term sustainability. The portfolio will provide the necessary financial support and stability during this period. If market conditions deteriorate, we will need to respond quickly and accelerate further our action on costs. However, at present the transformation programme is on track and the Company is meeting its objectives both in terms of costs and revenues.
“Above all, the reach, influence and reputation of our journalism will continue to grow.”
The results were released following the new commercial and editorial strategy implemented by the publisher of both the Guardian and the Observer, announced on June 2011, where it would invest in open journalism and its digital audience, while growing its revenue. However, it has also been forced to introduce a cost cutting strategy with savings of £25m over the next five years, in order to ensure its long-term future.
The Guardian’s online audience has now grown to 67.8m monthly unique browsers it claims, a growth of 38 per cent on March 2011, while its digital revenue grew by 16.3 per cent to £45.7m.
However, despite the increase in digital revenue offsetting the decline in print, revenue was still down slightly to £196.2m, which was £2m less than in 2011.
This saw an operating loss before exception items of £53.5m.
Post-year, GMG Radio was been sold to Global Radio, growing its operating profit before exceptional items and amortisation to £2.5 million.