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Job cuts help regional publisher stay in black

A programme of cost-cutting that saw more than 240 job losses helped regional publisher Northcliffe Media return a £30m profit this year.

Results published by parent company DMGT today revealed that revenues at the group fell by 10pc from £328m in the year up to 1 October 2009 to £294m in the same period this year.

But with a reduction of costs totalling £26m coupled with a £17m growth in digital revenues, the group saw its profits rise by £6m.

The £26m cost cuts included a £14m reduction on staff costs, with headcount across the group falling by 242.

Today’s report says: “Northcliffe has continued to innovate and change processes to drive down operational costs which have been reduced by £26 million or 10pc.

“Staff costs fell by an underlying £14m as headcount was reduced by 242 or 7pc since September 2009. Greater efficiency has been delivered across all departments.”

The report also predicts that Northcliffe faces “another tough year,” with advertising revenue since 1 October down 7pc on last year.

It says the group will also be affected by higher newsprint costs and that the focus will remain on reducing costs and new revenue opportunities.

The report revealed that newspaper circulation revenues fell by around 6pc or £4m, but the fall was sharper for the group’s daily titles.

Recent ABC figures showed that circulation of the group’s daily titles was down 7.7pc compared with an industry average of 6.7pc, while the weekly titles recorded a fall of 4.4pc.

“Despite the fall in revenues, Northcliffe has continued to innovate to improve the quality and quantity of its newspaper content,” the report says, highlighting the recent transfer of the hyperlocal initiative LocalPeople into the Northcliffe portfolio.

Elsewhere in DMGT, the group’s digital only business include Jobsite, FindaProperty and motors.co.uk saw profits increase from £1m to £6m.

6 comments

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  • November 25, 2010 at 11:20 am
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    Greater efficiency? Never mind the quality, feel the width…

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  • November 25, 2010 at 12:15 pm
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    Can’t ignore that the business world has to make a profit. But I hope somewhere down the line someone acknowledges the hideous way people have been treated and how many lives have been wrecked due to the cost cutting. I suspect the people making the cost cuts have not seen their wage packets getting smaller through this nasty experience. And when the bigwigs see their kids on Christmas morning opening their presents – think about the guys you laid off/sacked/pushed who won’t have such a great experience. This might sound corny and ghost of Christmas past, but just consider how many people were forced to move in last year’s reshaping of sub desks and how many are out of work now. Merry Christmas Northcliffe managing editors and a slashed new yeear to you all….

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  • November 25, 2010 at 12:55 pm
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    Northcliffe has continued to innovate to improve the quality and quantity of its newspaper content, (falls off chair)

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  • November 25, 2010 at 1:21 pm
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    So what they are saying is, we’ve cut staff to boost profits. It would have made an operating profit without slashing jobs in difficult economic times for all. When things improve, will they re-engage the sacked staff? I think not. It will be double’s all round for the suits while the galley slaves work even harder for less reward.

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  • November 25, 2010 at 4:43 pm
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    Wonderful news, Northcliffe have made their city shareholders a £30m profit, and they only had to put 240 local people out of work and knock out the last bit of editorial integrity that existed in any of their local newspapers….. their mums must be so proud.

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  • November 25, 2010 at 5:23 pm
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    So ‘the focus will remain on reducing costs’ with a near 10 per cent profit of £30m not enough to stop more devastating attacks on editorial quality. The statement is a tragic indictment of Northcliffe’s utter indifference to the future of genuine, quality local media. And what a nice message that sends out to the few remaining newsroom staff, just before Christmas.

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