Guardian Media Group (GMG) has today announced its full-year financial results, showing a £75.6 million pre-tax loss for the year ending 1 April 2012.
GMG reported an operating loss of £54.5 million in 2011, up from £53.9 million the previous year.
Revenue was slightly down in 2012, falling from £255.1 million last year to £254.4 million.
"The principal factor in the pre-tax loss of £75.6 million" was GMG Radio, which has since been sold to Global Radio, chief executive of GMG Andrew Miller said in a statement.
GMG is the parent company to Guardian News & Media (GNM), which last month reported a £44.2 million loss and announced a redundancy programme as it looks to cut costs.
Today's report states that GNM is targeting savings of at least £25 million over the course of the five-year plan announced in 2011. "This will be tough and challenging, but it is only by achieving the necessary levels of cost savings that the headroom for the digital future can be provided," the report says.
GMG also owns 50.1 per cent of Trader Media Group and has 32.9 per cent equity in B2B publisher Top Right Group (formerly Emap).
In the annual report GMG said that digital revenue growth largely offset print declines for the first time, with digital revenues up by 16.3 per cent to £45.7 million.
"The increase in digital revenues largely offset the decline in print revenues, leaving total revenues broadly flat at £196.2 million (2011 £198.2 million). The targeted cost savings were achieved, but planned investment in the transformation programme led to an increased operating loss before exceptional items of £53.5 million (2011 £38.3 million)."
Amelia Fawcett, chair of GMG, said in a statement: "It is early days but GNM is meeting its targets. Digital revenue growth is as we forecast, and for the first time has largely offset declines in print revenue – a significant milestone.
"The increase in GNM's operating loss is in line with our projections and reflects planned investments. These critical investments have been made possible through the headroom provided by large-scale savings.
"This gives us great confidence that GNM will meet its target of reducing losses to a sustainable level across a five year period."
Andrew Miller, chief executive of GMG, added: "It is to be expected that as we invest in the future of the Guardian, we will see some increase in GNM's losses. Meanwhile, difficult economic and market conditions notwithstanding, our portfolio of investments continued to fulfil its intended purpose of providing financial support and long-term security for the Guardian and its journalism."
He continued: "If market conditions deteriorate, we will need to respond quickly and accelerate further our action on costs. However, at present the transformation programme is on track and the company is meeting its objectives both in terms of costs and revenues."
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