Telegraph Hit By Price War And Newsprint Prices

The effects of the price war and newsprint prices have had their toll on the Telegraph’s results; the group’s pre-tax profit was £35.5 million, compared with £45 million in 1994.

Newsprint prices rose 15% at the beginning of 1995, followed by a further 30% increase in the middle of the year. In the last quarter of 1995 newsprint and magazine paper costs were almost 50% higher than in the last quarter of 1994, equivalent to an increase of approximately 7p on each copy of the Telegraph sold, although some of this was mitigated by a reduction in consumption.

The end of the price war in 1995, with two cover price increases, each of 5p, boosted second half profits and “gave rise to greater confidence going into 1996”. Advertising revenues maintained a steady increase, up 7.6% year on year; classified advertising fared best, up 22%, display advertising excluding financial was up just 3.8%, but financial advertising fell 19% year on year.

Telegraph: 0171 538 6257