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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.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, but 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 risen from 17,000 to 22,951; 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's 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.
• This article was amended on 16 July 2013 to show that the number of Guardian iPad subscribers has risen from 17,000 to 22,951 – not fallen to 14,419
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