According to chairman Paul Myners, the increases mark a year of “significant progress” for the company. GMG’s head also stated that the company had resisted “quick fixes” in approaching the challenges of a rapidly changing sector, instead following the group’s long-held policy of investing in “quality and innovation”, a strategy which Myners claims is producing benefits for the company’s future.
The annual results revealed that the acquisition of Trader Media Group in October 2003 has strengthened the long-term security of the group’s main titles, having a marked effect on the results as a whole.
Group turnover increased by 20.7% year on year to £634.8 million, while pre-tax profits rose to £43.6 million from £36.9 million. The group’s total operating profit was £84.5 million, compared with £38.4 million for the previous year.
Myners stated that both the Guardian and Observer had performed strongly in what had been a “volatile advertising climate and a fiercely competitive environment.” He also brought attention to record-breaking revenues produced by Guardian Unlimited, the Guardian’s online operation, which also increased its reach.
Elsewhere GMG Regional Newspapers achieved an unprecedented £30m profit level, while GMG Radio outperformed the radio industry as a whole. Myners stated that the group’s newest acquisition, Trader Media, continued to exceed expectations.
Earlier this month GMG confirmed the purchase of a 14% stake in Development Hell, publisher of the music and entertainment magazine, Word. The move has already paid dividends for Development Hell, as advertisements placed in the Guardian and Observer have helped increase sales of Word (see GMG Acquires 14% Stake In Development Hell).
