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| Guardian publisher cuts annual losses as digital revenues grow by nearly 30% | Guardian publisher cuts annual losses as digital revenues grow by nearly 30% |
| (about 1 hour later) | |
| Guardian News & Media cut its annual loss by 30% to £30.9m in the year to the end of March 2013, as growing digital revenues helped offset the continuing decline in income from print operations. | |
| The publisher of the Guardian, Observer and guardian.co.uk website network – including MediaGuardian – increased digital revenues by 28.9% from £43.4m to £55.9m in the 12-month period, helping the publisher to slightly increase total revenues year on year to £196.3m. | The publisher of the Guardian, Observer and guardian.co.uk website network – including MediaGuardian – increased digital revenues by 28.9% from £43.4m to £55.9m in the 12-month period, helping the publisher to slightly increase total revenues year on year to £196.3m. |
| GNM, which reported a loss before exceptional items and amortisation of £44.2m for the year to the end of March 2012, now derives just over 28% of total revenues from online operations. | GNM, which reported a loss before exceptional items and amortisation of £44.2m for the year to the end of March 2012, now derives just over 28% of total revenues from online operations. |
| Parent company Guardian Media Group, which owns 50.1% of Trader Media Group and 32.9% of Emap-owner Top Right Group, reported profits before tax of £22.7m. | Parent company Guardian Media Group, which owns 50.1% of Trader Media Group and 32.9% of Emap-owner Top Right Group, reported profits before tax of £22.7m. |
| This is a dramatic improvement on the £75.6m loss reported in 2012, which was primarily due to a £54.2m write-off of the value of GMG Radio, which runs the Smooth and Real station brands. | This is a dramatic improvement on the £75.6m loss reported in 2012, which was primarily due to a £54.2m write-off of the value of GMG Radio, which runs the Smooth and Real station brands. |
| Stripping the financial performance of the radio operation – which was sold to Global Radio for £70m in mid 2012 – out of GMG's results to provide a like-for-like picture, total revenues remained flat at £206m, including GNM's contribution. | Stripping the financial performance of the radio operation – which was sold to Global Radio for £70m in mid 2012 – out of GMG's results to provide a like-for-like picture, total revenues remained flat at £206m, including GNM's contribution. |
| Overall, GMG – including the newspaper operation – made an operating loss £54.8m, down from the almost £76m the previous year. | Overall, GMG – including the newspaper operation – made an operating loss £54.8m, down from the almost £76m the previous year. |
| "A sharp increase in the contribution of our digital operations to revenue was a striking feature," said Andrew Miller, chief executive of GMG. "Having committed to digital earlier than our peers, we are now reaping the benefits." | "A sharp increase in the contribution of our digital operations to revenue was a striking feature," said Andrew Miller, chief executive of GMG. "Having committed to digital earlier than our peers, we are now reaping the benefits." |
| The reduction in GNM's operating loss was helped by cutting £9m from print costs, including a reduction in pagination following a redesign, as well as nearly £3m cut from editorial budgets, with almost 60 of 650 editorial staff leaving under a voluntary redundancy programme. | The reduction in GNM's operating loss was helped by cutting £9m from print costs, including a reduction in pagination following a redesign, as well as nearly £3m cut from editorial budgets, with almost 60 of 650 editorial staff leaving under a voluntary redundancy programme. |
| Revenues boost | Revenues boost |
| GNM's digital display and sponsorship revenues grew 39% year on year to £25m, online recruitment revenues rose a third to £16m and subscription/e-commerce revenues, including date site Soulmates, grew 15% to £15m. | GNM's digital display and sponsorship revenues grew 39% year on year to £25m, online recruitment revenues rose a third to £16m and subscription/e-commerce revenues, including date site Soulmates, grew 15% to £15m. |
| The growth in digital revenues, which remain above those of the world's largest newspaper website, Mail Online – predicted to be £45m this year – helped offset a 7% year-on-year decline in total print revenues to £140.4m. | The growth in digital revenues, which remain above those of the world's largest newspaper website, Mail Online – predicted to be £45m this year – helped offset a 7% year-on-year decline in total print revenues to £140.4m. |
| It is not known what the decline in GNM's print advertising revenues was in the last year, however the decline was ameliorated by a significant cover price increase in January. | It is not known what the decline in GNM's print advertising revenues was in the last year, however the decline was ameliorated by a significant cover price increase in January. |
| The Guardian sold 187,000 copies a day in June, an 11% year-on-year fall, while the Observer shrunk 13% over the period, selling 212,376 last month. | The Guardian sold 187,000 copies a day in June, an 11% year-on-year fall, while the Observer shrunk 13% over the period, selling 212,376 last month. |
| However, GNM's digital operation, which expanded to the US in late 2011 and Australia earlier this year, has grown monthly browsers by almost 40% year on year to around 83 million. | However, GNM's digital operation, which expanded to the US in late 2011 and Australia earlier this year, has grown monthly browsers by almost 40% year on year to around 83 million. |
| While mobile traffic is at a record high, with almost 22.8 million unique browsers in May, paying subscriber numbers have slackened. | While mobile traffic is at a record high, with almost 22.8 million unique browsers in May, paying subscriber numbers have slackened. |
| iPad subscribers, who pay up to £11.99 a month, have fallen from 17,000 to 14,419; iPhone app users, who pay £3.99 for six months, stand at 57,259, down from 82,000 a year ago. | iPad subscribers, who pay up to £11.99 a month, have fallen from 17,000 to 14,419; iPhone app users, who pay £3.99 for six months, stand at 57,259, down from 82,000 a year ago. |
| "There was a significant reduction in losses at GNM … [which] would have been even greater had we not chosen to invest a significant proportion of the efficiency savings in new developments," Miller said. | "There was a significant reduction in losses at GNM … [which] would have been even greater had we not chosen to invest a significant proportion of the efficiency savings in new developments," Miller said. |
| The improvement in GMG's pre-tax profits is attributable in part to the sale of automotive information firm CAP, part of Top Right Group, for £170m, of which GMG's share of the profit was £29.5m. | The improvement in GMG's pre-tax profits is attributable in part to the sale of automotive information firm CAP, part of Top Right Group, for £170m, of which GMG's share of the profit was £29.5m. |
| Profits – earnings before interest, tax and amortisation – were £54.5m, which includes GMG's share of TMG and TRG profits. GMG's cash and investment fund grew from £225.8m to £253.7m. | Profits – earnings before interest, tax and amortisation – were £54.5m, which includes GMG's share of TMG and TRG profits. GMG's cash and investment fund grew from £225.8m to £253.7m. |
| Executive remuneration | Executive remuneration |
| GMG Radio' sale triggered a £1.33m payout for Stuart Taylor, the former managing director of the radio division. | GMG Radio' sale triggered a £1.33m payout for Stuart Taylor, the former managing director of the radio division. |
| Taylor received £710,000 as a "transaction bonus" on achieving the unexpectedly high sale price, another £509,000 for loss of office when he left GMG on 30 June following the sale, as well as more than £100,000 in salary and pension payments. | Taylor received £710,000 as a "transaction bonus" on achieving the unexpectedly high sale price, another £509,000 for loss of office when he left GMG on 30 June following the sale, as well as more than £100,000 in salary and pension payments. |
| The total paid to GMG's directors rose to £3.4m, up significantly on the £2.6m in 2012. | The total paid to GMG's directors rose to £3.4m, up significantly on the £2.6m in 2012. |
| Alan Rusbridger, the editor-in-chief of the Guardian and Observer, who opted to take a 10% pay cut last year, received a total remuneration package of £491,000. | Alan Rusbridger, the editor-in-chief of the Guardian and Observer, who opted to take a 10% pay cut last year, received a total remuneration package of £491,000. |
| Rusbridger's base salary was £395,000, and his decision to halve the company pension contribution to £75,000 meant that his total remuneration fell significantly from £607,000 the previous year. | Rusbridger's base salary was £395,000, and his decision to halve the company pension contribution to £75,000 meant that his total remuneration fell significantly from £607,000 the previous year. |
| Miller, who also took a 10% pay cut last year, took home £769,000. Last year he took home £739,000. | Miller, who also took a 10% pay cut last year, took home £769,000. Last year he took home £739,000. |
| Miller was paid a bonus of £202,000 – although he has only elected to take home half of it – after forgoing £284,000 in potential bonuses over the past two years. | Miller was paid a bonus of £202,000 – although he has only elected to take home half of it – after forgoing £284,000 in potential bonuses over the past two years. |
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