Guardian Media Group reports pre-tax loss of £89.8 million

Guardian Media Group has reported a pre-tax loss of £89.8 million for the year to the end of March, with turnover down by £96.7 million to £405.4 million.

However, once the contribution from Tender Media Group, a joint venture with Emap that was spun off last year, is discounted GMG’s revenue was down just 7.6%,

Group turnover was up slightly from £625.7 million in 2008 to £637.9 million, according to the company’s trading statement.

The group’s national newspaper arm Guardian News & Media posted an increase in operating loss to £36.8 million from £26.4 million last year, on a turnover of £253.6 million.

However, GMG regional media’s operating profit dropped to £0.5 million from £14.3 million in 2008, mainly due to a 30% fall in classified ad revenues – recruitment fell by 34%, while property was down 46% and motors by 16%.

GMG’s commercial radio division, meanwhile, suffered a 5% decline in advertising.

Amelia Fawcett, GMG’s chair, said: “2008/09 was a difficult year for most parts of the media industry, and our own group is not immune to the combined effects of recession and longer-term structural change. We will need to re-examine and reshape many of our existing business models if we are to continue to be successful.”

Carolyn McCall, chief executive, added: “The sharp decline in the advertising market had an impact on each of the wholly owned businesses. All are reducing costs to a more sustainable level in this harsh new environment.”