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Telegraph Media Group profits fall 7.5% | Telegraph Media Group profits fall 7.5% |
(about 6 hours later) | |
Profits at Telegraph Media Group fell 7.5% year on year to £54.5m in 2011, as investment in digital development and the soaring price of newsprint hit the bottom line. | Profits at Telegraph Media Group fell 7.5% year on year to £54.5m in 2011, as investment in digital development and the soaring price of newsprint hit the bottom line. |
The publisher of the Daily Telegraph, Sunday Telegraph and Telegraph.co.uk said pre-tax profits fell by £4.4m compared to 2010, when it made £58.9m. | The publisher of the Daily Telegraph, Sunday Telegraph and Telegraph.co.uk said pre-tax profits fell by £4.4m compared to 2010, when it made £58.9m. |
The results were revealed in a statement published ahead of full financial details of the group's 2011 performance, which will be made public on the Companies House website this week. | The results were revealed in a statement published ahead of full financial details of the group's 2011 performance, which will be made public on the Companies House website this week. |
TMG said operating profit declined by £4.4m, or 7.3% year on year from £60.1m to £55.7m. | TMG said operating profit declined by £4.4m, or 7.3% year on year from £60.1m to £55.7m. |
However, total revenue rose 2% to £331m as advertising, digital and other consumer revenue all achieved year-on-year growth, although the publisher did not break out more specific category figures. | However, total revenue rose 2% to £331m as advertising, digital and other consumer revenue all achieved year-on-year growth, although the publisher did not break out more specific category figures. |
Circulation revenues remained "on par" with 2010, thanks to cover price increases. | Circulation revenues remained "on par" with 2010, thanks to cover price increases. |
In November the price of the weekday Daily Telegraph was increased by 20%, or 20p, to £1.20. The Saturday edition of the paper was increased by 10p to £2. | In November the price of the weekday Daily Telegraph was increased by 20%, or 20p, to £1.20. The Saturday edition of the paper was increased by 10p to £2. |
"The group delivered a solid performance despite the challenging economic climate, particularly in the second half of the year," the company said. "[The] improved revenue performance was offset by increased costs, especially substantially higher newsprint prices." | "The group delivered a solid performance despite the challenging economic climate, particularly in the second half of the year," the company said. "[The] improved revenue performance was offset by increased costs, especially substantially higher newsprint prices." |
Earlier this month Trinity Mirror, owner of the Daily Mirror, Sunday Mirror and the People, revealed a 40% fall in pre-tax profits to £74m for 2011. | Earlier this month Trinity Mirror, owner of the Daily Mirror, Sunday Mirror and the People, revealed a 40% fall in pre-tax profits to £74m for 2011. |
The Trinity Mirror chief executive, Sly Bailey, said the publisher, which also owns more than 100 regional newspapers, had to cope with a £22m increase in newsprint prices in 2011. | The Trinity Mirror chief executive, Sly Bailey, said the publisher, which also owns more than 100 regional newspapers, had to cope with a £22m increase in newsprint prices in 2011. |
TMG said "continuing investment in digital development" also contributed to a decline in profits at an operating level. | TMG said "continuing investment in digital development" also contributed to a decline in profits at an operating level. |
Last year the company looked at launching a New York Times-style metered digital subscription paywall, although this plan has never developed into a firm strategy. Last week the US publisher halved the number of free articles web users can view per month before paying by 50% to 10. | Last year the company looked at launching a New York Times-style metered digital subscription paywall, although this plan has never developed into a firm strategy. Last week the US publisher halved the number of free articles web users can view per month before paying by 50% to 10. |
The most recent officially audited web traffic for February shows Telegraph.co.uk saw monthly unique browser numbers fell 4.43% compared to January to 46,151,900. | The most recent officially audited web traffic for February shows Telegraph.co.uk saw monthly unique browser numbers fell 4.43% compared to January to 46,151,900. |
The average number of daily online browsers climbed 2.14% month on month to 2,511,429. | The average number of daily online browsers climbed 2.14% month on month to 2,511,429. |
The average number of editorial and production staff employed by TMG rose year on year from 619 to 627. Selling, distribution and administration staff also rose from 385 to 428. | |
Wages and salaries crept up by £2.2m, to £65.2m, with total staff costs including pension and social security climbing to £77.8m. | |
The highest-paid director at Telegraph Media Group received £800,000, including a £100,000 pension contribution. | |
According to the Companies House filing for Press Acquisitions Limited, the parent company of TMG, total loans at the newspaper publisher crept up from £210m to £215m year on year. | |
Interest payments also climbed marginally to £7.9m in 2011. TMG paid off a £25m loan due to May Corporation, Press Corporation's parent company, which is incorporated in Jersey and is ultimately controlled by Sir David and Sir Frederick Barclay. | |
When the various loan and interest payments are taken into account TMG reported an 8.6% decline in pre tax profits from £52.4m to £47.9m. | |
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