GMG reveals £43.6m profit as Trader Media deal pays off

by Sam Matthews,, Brand Republic 21-Jul-04, 16:00

LONDON - Guardian Media Group, owner of The Guardian and The Observer, has reported pre-tax profit of £43.6m, following the successful integration of Auto Trader publisher, Trader Media, last year.

The £590m deal sealed in October 2003, the second-biggest media merger of the year behind the ITV merger, helped GMG increase profits by 20.7%, according to its annual report.

The report cites £73.8m of the group's profit was contributed through the acquisition of Trader Media. "Trader Media continues to exceed all expectations," GMG chairman Paul Myners said.

Myners went on to say the group had resisted "quick fixes" employed by other media companies in a rapidly changing market and The Guardian and The Observer had performed well in the volatile advertising climate, with both titles beating rivals with the highest figures for full-price sales.

However, The Guardian's circulation suffered losses following the launch of the tabloid editions of The Independent and The Times. Overall, the national newspapers division made a £6.2m loss last year, reduced from a loss of £7.5m the year before.

GMG regional newspapers achieved a record £30m profit level for the first time and GMG Radio, home to Jazz FM and Real, outperformed the radio industry as a whole, according to the report.

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