GMG, owned by the Scott Trust, said its results were boosted by a profit of £334.8m on the disposal of a 49.9% stake in Trader Media Group, which owns Auto Trader, to private Apax last year.
However, Paul Myners, chairman of Guardian Media Group, said: "We expect the uncertainty within the UK economy to have an impact on a number of the group's revenue streams in the coming year. Nonetheless, we end this financial year and look ahead to the next with confidence."
GMG conceded that of all of its divisions, its regional media arm, which among others publishes the Manchester Evening News, "was the most seriously affected by the difficult advertising market conditions and the migration of revenues - particularly in classified advertising - from print to online".
Despite this, the regional business delivered operating profit of £14.3m (2007 £19.4m) on broadly flat turnover of £120.5m (2007 £122.2m). Regional display advertising revenue rose 1% year on year, but classified advertising fell by 8.1%.
GMG's Guardian News & Media arm, which publishes The Guardian, increased turnover to £261.9m from £245.7m. Its underlying profit performance improved, with operating losses (excluding certain costs) falling from £15.9m to £13.9m. GNM's newspaper display advertising revenues grew by 6.6% and both digital display and recruitment by 49%.
Blaming what it conceded was a "soft national advertising market", GMG Radio posted a decline in operating profit to £0.1m (2007 £3.5m). Turnover was up 36.7% at £48.8m.
Auto Trader
GMG pre-tax profits surge to £300m
LONDON - Guardian Media Group's pre-tax profits surged to £306.4m during the 2007/08 financial year, up from £97.7m the previous year, thanks largely to the sale of nearly half of its stake in publisher Auto Trader. However, the media owner warned that the economic downturn "will have a significant impact" on its revenues this year.
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