Post by dreamr on Nov 22, 2008 11:09:03 GMT
'Daily Mail' cuts jobs and costs
Daily Mail & General Trust revealed yesterday that profits have dropped 9pc this year. Bryn Colton/Bloomberg
(from: www.independent.ie/business/media/daily-mail-cuts-jobs-and-costs-1548305.html)
By Nick Clark
Friday November 21 2008
The owner of the 'Daily Mail' newspaper has axed hundreds of jobs and launched a £100m drive to boost revenues, as it becomes the latest publishing group to feel the grip of the financial crisis.
Daily Mail & General Trust revealed yesterday that profits have dropped 9pc this year, dragged down by its property and newspaper businesses, especially regional publisher Northcliffe Media.
DMGT's chief executive Martin Morgan admitted that "the worsening economic conditions had an adverse impact on the newspaper and property business" but backed the group to remain resilient during the downturn.
The firm's short term outlook is bleak as advertising falls and the cost of newsprint rises and the firm is taking "decisive action to defend profitability". This action includes a £100m cost-cutting and revenue-lifting drive, and yesterday the group outlined the cuts to staff.
Slashed
The company said staff had been slashed by 400 across the Associated Newspaper division -- which publishes the 'Daily Mail', the 'Evening Standard', and 'Metro' -- and Northcliffe.
The media sector is under severe pressure following the onset of the credit crunch. This has been driven by an industry-wide collapse in advertising revenue, with the group admitting 10pc falls in October alone. The rising cost of newsprint has also affected profits.
Already this month, Trinity Mirror admitted it is to increase its cost-cutting this year, with job cuts likely and potential closures of local titles. Johnston Press also revealed its advertising revenues were down 15pc
Profits at Associated's national newspaper business fell 13pc, despite a slight lift in circulation. This came from the fall in advertising and investment in the titles, including going full colour at the 'Mail'.
Worst hit was Northcliffe Media, which was "badly affected" by the downturn in local advertising and the credit crunch. Advertising plunged 28pc last month, with profits down from £93m to £68m.
- Nick Clark
Daily Mail & General Trust revealed yesterday that profits have dropped 9pc this year. Bryn Colton/Bloomberg
(from: www.independent.ie/business/media/daily-mail-cuts-jobs-and-costs-1548305.html)
By Nick Clark
Friday November 21 2008
The owner of the 'Daily Mail' newspaper has axed hundreds of jobs and launched a £100m drive to boost revenues, as it becomes the latest publishing group to feel the grip of the financial crisis.
Daily Mail & General Trust revealed yesterday that profits have dropped 9pc this year, dragged down by its property and newspaper businesses, especially regional publisher Northcliffe Media.
DMGT's chief executive Martin Morgan admitted that "the worsening economic conditions had an adverse impact on the newspaper and property business" but backed the group to remain resilient during the downturn.
The firm's short term outlook is bleak as advertising falls and the cost of newsprint rises and the firm is taking "decisive action to defend profitability". This action includes a £100m cost-cutting and revenue-lifting drive, and yesterday the group outlined the cuts to staff.
Slashed
The company said staff had been slashed by 400 across the Associated Newspaper division -- which publishes the 'Daily Mail', the 'Evening Standard', and 'Metro' -- and Northcliffe.
The media sector is under severe pressure following the onset of the credit crunch. This has been driven by an industry-wide collapse in advertising revenue, with the group admitting 10pc falls in October alone. The rising cost of newsprint has also affected profits.
Already this month, Trinity Mirror admitted it is to increase its cost-cutting this year, with job cuts likely and potential closures of local titles. Johnston Press also revealed its advertising revenues were down 15pc
Profits at Associated's national newspaper business fell 13pc, despite a slight lift in circulation. This came from the fall in advertising and investment in the titles, including going full colour at the 'Mail'.
Worst hit was Northcliffe Media, which was "badly affected" by the downturn in local advertising and the credit crunch. Advertising plunged 28pc last month, with profits down from £93m to £68m.
- Nick Clark
