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The UK Guardian is losing 10's of millions a year and is being kept afloat by a car magazine. With Suzanne Goldenberg's recent confusion, I wondered if perhaps the stress and embarrassment was getting to her.
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6/18/11, "Riches to rags as Guardian bleeds £33m in a year," UK Telegraph, Gordon Rayner
"On Thursday, Guardian News and Media (GNM) announced that The Guardian and its sister paper, The Observer, had lost £33m in cash terms last year after failing to staunch losses that ran to £34.4m the year before. ...
Andrew Miller, the chief executive of GNM's parent company, Guardian Media Group (GMG), warned staff in a series of meetings this week that the group could run out of cash in three to five years if he does not make radical changes, which could include up to 175 redundancies....
In particular, recruitment advertising, long the cash cow for The Guardian because of its preferred status for public sector job adverts, has fallen by £41m in the last four years as Government departments have slashed spending on advertising. ...
In truth, the only reason The Guardian has been able to carry on as long as it has done without making savage cuts is because it has been subsidised by large profits from Auto Trader, which is owned by GMG.
Lorna Tilbian, a media analyst at Numis, said: "The Guardian is being artificially propped up by Auto Trader and they will have to change things because a good, vibrant business shouldn't need to reinvest every penny it generates.
"The problem they've got is that they're never going to get back the revenue they've lost from public sector advertising, circulation is on a long downward slope and they are giving away their digital content.
"I think they will have to start charging for their online content if they are to improve their finances.""...
via Tom Nelson
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