Guardian on track to break even as company halves its losses | Media | The Guardian: Guardian News & Media (GNM) reported a �19m loss in the year to the end of March, half the �38m loss recorded in the previous financial year.
The publisher, which is now in the final year of a three-year plan to break even, has cut losses to a third of the �57m reported when the drive to reshape the business began.
GNM’s �19m loss is 25% better than its internal target of �25m, due to a combination of better-than-expected revenue growth and almost �20m removed from the group’s cost base.
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The publisher cut costs by 7% year-on-year, from �252m to �235m. The reduction includes the first savings from the shift to a tabloid format in January.
“We are well on track with our three-year strategy to make the Guardian sustainable and break even at operating level by 2018-2019,” said editor-in-chief Katharine Viner and David Pemsel, the chief executive of GNM parent Guardian Media Group in a joint statement. “Thanks to outstanding collaborative work in the UK, US and Australia, we have finished the second year well ahead of our forecast.”
Total revenues increased marginally by 1% to �216m, a second consecutive year of growth in the face of tough market conditions for publishers.
The steep declines in print ad revenue affecting all publishers was more than offset by strong growth in digital income and the rapid growth of reader revenues.
Reader revenues – from contributions, a three-tier membership programme, and print and digital subscribers – are a core part of the Guardian’s plans to diversify revenue streams and reduce reliance on traditional income from advertising and newsstand sales.
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More than 800,000 people now financially support the Guardian, up 200,000 from a year ago. Of these about 200,000 are print or digital subscribers, more than 300,000 are members or regular contributors, and more than 300,000 gave one-off contributions.
The publisher, which is now in the final year of a three-year plan to break even, has cut losses to a third of the �57m reported when the drive to reshape the business began.
GNM’s �19m loss is 25% better than its internal target of �25m, due to a combination of better-than-expected revenue growth and almost �20m removed from the group’s cost base.
Sign up to the Media Briefing: news for the news-makers
Read more
The publisher cut costs by 7% year-on-year, from �252m to �235m. The reduction includes the first savings from the shift to a tabloid format in January.
“We are well on track with our three-year strategy to make the Guardian sustainable and break even at operating level by 2018-2019,” said editor-in-chief Katharine Viner and David Pemsel, the chief executive of GNM parent Guardian Media Group in a joint statement. “Thanks to outstanding collaborative work in the UK, US and Australia, we have finished the second year well ahead of our forecast.”
Total revenues increased marginally by 1% to �216m, a second consecutive year of growth in the face of tough market conditions for publishers.
The steep declines in print ad revenue affecting all publishers was more than offset by strong growth in digital income and the rapid growth of reader revenues.
Reader revenues – from contributions, a three-tier membership programme, and print and digital subscribers – are a core part of the Guardian’s plans to diversify revenue streams and reduce reliance on traditional income from advertising and newsstand sales.
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More than 800,000 people now financially support the Guardian, up 200,000 from a year ago. Of these about 200,000 are print or digital subscribers, more than 300,000 are members or regular contributors, and more than 300,000 gave one-off contributions.