The Guardian Media Group’s committed investment in new media of more than £34m in the year ending 1 April has seen its profits fall from £73.5m to £67.3m.
Increased spending on the new media initiative was reflected in a drop in the total operating profit from £47.4m to £29.4m.
But GMG’s net cash position has continued to strengthen to £194m from £176m, according to its annual report.
Chairman Paul Myners insisted the group was making good progress and the value of its forward-looking approach could be judged by the progress of its new media and radio ventures at a time when other media groups’ experiences with new ventures had been less successful.
Meanwhile, Independent News & Media, publisher of The Independent, has announced a fall in pre-tax profits of 17.2 per cent for the six months until the end of June. It blamed adverse currency movements, exceptional start-up costs and increased financing charges due to buying the Belfast Telegraph and the Citywest printing operation in Ireland.
In the UK, the group recorded overall profits of £6.7m on revenues of £79.3m, which were up 54 per cent due to the acquisition of the Belfast Telegraph.
Despite uncertainty in global markets, the group expects to report an improved result for the full year.