Guardian News & Media, publisher of The Guardian and Observer newspapers and the Guardian Unlimited website, reduced its operating loss from £49.9m to £12.4m in 2007. The larger operating loss in the previous financial year was mainly because of the group's purchase of new printing presses for the Berliner format.
But GNM's revenues were also increased this year because of the 49% growth in digital revenues from display and recruitment advertisers. Print display revenues also increased and circulation revenue grew by more than 10%.
GNM intends to restructure the company, reducing staff in some areas but recruiting more personnel for its digital businesses.
GMG Radio reported a pre-tax profit of £0.8m in 2007 compared with a pre-tax profit of £2.7m the year before. During the year, it acquired the Century and Saga radio networks and QFM in Scotland.
Trader Media Group, publisher of Auto Trader magazine and website, continued its strong performance for GMG, posting a pre-tax profit of £82.4m. But this was down by £15.4m from 2006, which the company said was because of costs related to new acquisitions, start-ups and business restructuring.
For the first time, Auto Trader's digital business contributed more profit than the magazine. While profit from print titles continued to fall, profit from Autotrader.co.uk increased by 30% year on year.
In June, 49.9% of Trader Media Group was sold to private equity firm Apax Partners and GMG intends to use the proceeds to develop existing businesses and to pursue acquisitions where it will become the majority owners of operating companies.
The group predicts this will result in a reduction in underlying overall GMG profit in the coming year. Had this year's results reflected the change in ownership, the group's pre-tax profit would have been reduced from £97.7m to £75.2m.
Paul Myners, chairman of Guardian Media Group, said: "In a difficult operating environment characterised by increasing evidence of structural change in UK media markets, GMG has been at the forefront in recognising and responding to those changes.
"The group has delivered a solid financial performance in line with our expectations for the year."
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