TMG's financials hit by newsprint costs

Telegraph Media Group (TMG), the publisher of The Daily Telegraph and The Sunday Telegraph, has reported a 7% fall in pre-tax profits to £54.5m in the year ending January 2012, after it was hit by higher newsprint costs.

The Daily Telegraph: owner TMG predicts a tough year ahead
The Daily Telegraph: owner TMG predicts a tough year ahead

TMG is the second national newspaper publisher to attribute a hit to its bottom line by rising newsprint costs in recent weeks, following that of Trinity Mirror.

TMG reported revenues of £331m in 2011, compared to £323.8 last year. The group said revenues had benefited from a boost in advertising and digital revenues.

In its financial figures, obtained from Companies House, TMG said: "The improved revenues performance was impacted by a significant increase in newsprint costs, however along with a continued focus on other costs and operational efficiencies during the year the company has still delivered an acceptable operating performance in 2011."

TMG said 2012 is set to be a difficult trading year for the group, though the Olympics and Diamond Jubilee would stimulate demand.

TMG also outlined its digital philosophy, which includes expanding the range of digital publications and services available to its customers in the year ahead.

TMG's news content on telegraph.co.uk is currently free-of-charge to consumers, despite  long-standing speculation that it is to introduce a pay-model of some description.

In 2011, staff numbers at TMG reduced from 1,055 to 1,004. Wages and salaries were up from £63m to £65.2m.

Follow John Reynolds on Twitter @johnreynolds10

Have your say...

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Media Week Jobs
Search for more media jobs

Latest

Pinnington departs Havas after 30 years

Pinnington departs Havas after 30 years

Chris Pinnington, the global chief operating officer at Havas Worldwide, is stepping down after 30 years at the company.

Share
Arena wins £4m Seven Seas owner Merck Consumer Health account

Arena wins £4m Seven Seas owner Merck Consumer Health account

Arena has won the £4 million media business for Merck Consumer Health, owner of Seven Seas and Hailborange, currently handled by MEC Manchester.

Share
New Look prepares for media review

New Look prepares for media review

New Look, the fashion retailer, is known to be speaking to agencies about its media planning and buying arrangements with a strong possibility of calling a review of the business handled by ZenithOptimedia.

Share

Get news by email