Profits have increased year-on-year at regional publisher Northcliffe Media despite the recession, according to a statement issued by its parent company today.
The interim mangament statement issued by DMGT revealed that total revenues at Northcliffe for the last quarter of 2009 were down 15pc on the previous year.
However with costs falling by 18pc, it meant that the group turned in a higher operating profit than in the final three months of 2008.
“The continuing transformation of Northcliffe’s cost base resulted in UK publishing costs being 18pc lower than last year. As a consequence, profits were up on the previous year,” said the statement.
Advertising revenues across the group were 13pc lower than in the same period in 2008, compared with a year-on-year decline of 18pc in the previous quarter.
However digital revenues were 11pc higher year-on-year, with property, motors and retail performing strongly.
DMGT as a whole also saw a year-on-year revenue decline of 15pc during the three months to 31 December.
Chief executive Martin Morgan said: “Trading has been ahead of our expectations and the new calendar year has started well, but we remain cautious about the outlook for the rest of the year.”
“We continue to manage the business actively to defend profitability with the focus on driving organic growth remaining our priority.”
All Subbed Out (10/02/2010 14:27:26)
Subtitles are as follows:
“The continuing transformation of Northcliffe’s cost base” = hundreds of redundancies and teh decimation of once-proud titles.
“As a consequence, profits were up on the previous year” = Directors and shareholders with bulging pockets say thanks, suckers.
“Trading has been ahead of our expectations … but we remain cautious” = Don’t expect the plebs to see any comeback from the slashed staffing levels and budgets, as we’re trousering all the benefit.
Regina McDoogal (10/02/2010 14:50:38)
We continue to manage the business actively to defend profitability with the focus on driving organic growth remaining our priority.”
Or in other words: “we continue to make money by making more staff redundant – like the staff on the press in Plymouth”?
Worker (10/02/2010 15:00:30)
Translated maybe as: “We’ve saved a few bob for the bubbly this year…but our decision to slash vast swathes of our workforce in the short-term should help finally destroy regional newspapers in the long-term. Mission accomplished.”
Ex-Ex (11/02/2010 11:14:35)
Lots of redundancies at the chalkface, but somehow when Northcliffe merged its Wales and Southwest divisions, none of the managing directors and their deputies were axed. How many journos is a surplus MD worth, taking into account the total package (company car etc)?
Sub Zero (11/02/2010 17:07:06)
Shameless! A proud newspaper tradition decimated by the money men for the benefit of senior management and shareholders. Readers will realise they are being short-changed and will look elsewhere for news, sport and information and who can blame them?
Little Johnny Jewell (16/02/2010 17:10:23)