Guardian and Observer pile on the losses

Dominic Ponsford
 
The Guardian and Observer newspapers have announced ballooning combined pre-tax losses
of £48.3 million for the last financial year, compared with £6.2 million the year before.
 
News of the losses came as parent company Guardian Media Group revealed
turnover up 18 per cent to £751.9 million and overall pre-tax profits
nearly half that of last year at £22.9 million (compared with £43.6
million).
The figures were hit by spending of £100 million on capital projects in
the year.
 
According to chairman Paul Myners some £80 million has been spent on
installing three new full-colour Berliner-size presses for the Guardian
and Observer, up from the initial £50 million estimated cost of the
project.
Another £24 million is being spent on new colour presses for GMG’s
local papers in the north of England.
 
The loss-making national titles
have been subsidised by the company’s regional newspapers, which made record profits of £32.6 million.
Trader Media Group, which includes Autotrader magazine, provided the
major income for the group with operating profits of £116.6 million.
 
Myners highlighted the success of The Guardian’s website which now
claims 10 million unique users per month.
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