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
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
This article was first published on mediaweek.co.uk
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