GMG posts £171 million pre-tax loss
Guardian Media Group has reported an increased pre-tax loss of £171 million for the 12 months to the end of March.
GMG attributed the loss to the write-down of the company's Emap investment and GMG Radio, down £96.5 million and £63.9 million respectively, according to reports.
Turnover at GMG fell from £310.9 million in 2008/2009 to £280million in 2009/10, while operating losses fell from £65.2 million to £53.9 million.
The Guardian-owner reduced its costs by £26.2 million following a restructuring plan, which included 203 job cuts, voluntary redundancies and outsourcing the group's commercial operations.
GMG's revenues fell by £32.6 million during the period, while its cash and investment fund dipped from £267.7 million to £260.8 million.
The publishing company's part-owned operations, Emap and Trader Media Group, saw their operating profits fall to £90.1 million and £104.8 million respectively. Both businesses are jointly owned by GMG and Apax Partners.
GMG Radio recorded a £600,000 operating profit before exceptional items and amortisation, compared with a £6.6 million loss in the previous financial year.
Amelia Fawcett, GMG chair, said: "Guardian Media Group remains well positioned in terms of overall resources and general financial health, and has delivered a satisfactory performance in the most challenging of years.
"The pre-tax loss was driven primarily by non-cash adjustments relating to asset impairments, not cash outflow. During 2009/10, despite economic turmoil and continued upheaval in the creative industries, GMG's combined cash balance and investment fund declined by less than 3%."
GMG's outgoing chief executive Carolyn McCall added: "Significant cost savings during the year led to a fall in operating loss before exceptionals. The media industry faces continued uncertainty. Nonetheless, GMG can look ahead with cautious optimism, and with confidence in the future of the Guardian."
In a statement, GMG said: "We anticipate that the ongoing cost reduction programme will reduce GNM's operating loss in the current financial year (2010/11), provided that revenues are stabilised.
"As GMG's pre-tax loss in 2009/10 was driven by large, one-off charges, we anticipate a substantial reduction in the pre-tax loss in the current financial year. We also expect an improvement in GNM's performance due to the changes made during 2009/10, which will impact positively on GMG's results."
