After years of operating at a loss, Guardian News & Media has managed to reverse its fortunes and break even at an EBITDA operating level for the 2018/19 financial year.
The publisher of the Guardian and the Observer posted profits of £800,000 – following losses of £19m in 2017/18 and £57m in 2015/16 – marking the successful completion of the company’s three-year turnaround strategy launched in January 2016.
GNM’s revenues grew 3% to £223 million, the highest level for a decade. Advertising revenues also grew 3% across the year, with “good” growth in digital advertising. Meanwhile, print ads now represent less than 8% of the publisher’s total revenues.
Digital continues to drive the majority of revenue growth for Guardian Media Group, GNM’s parent company. The group now makes 55% of its revenues though digital streams, including advertising, subscriptions and reader contributions. Digital revenues for 2018/19 amounted to £123m.
“Over the last three years we have made a huge amount of progress, and I’m exceptionally proud of how far we’ve come,” said David Pemsel, Guardian Media Group’s chief executive.
“Achieving these results is testament to the absolute commitment and ingenuity of everyone within the organisation. We are very grateful for the support of our readers, advertisers and partners who believe in the value of high quality media.
“GMG is now a more reader-funded, more digital, more international business. Although the significant turbulence in the global media sector shows no sign of abating any time soon, we have developed a set of core strengths which will help to ensure the Guardian’s ongoing independence and financial sustainability for the long term.”
Elsewhere, international revenues have doubled since 2015/16, with both Guardian US and Guardian Australia now financially sustainable.
According to GNM, its audience has grown “substantially” over the past three years and now includes 655,000 monthly paying supporters, plus an additional 300,000 one-off contributors in the last 12 months.
