Heavy Losses At The Guardian
By Paul Homewood
It just goes to show that fake news does not pay.
From the Telegraph:
The Guardian has warned staff to expect further heavy losses, as the newspaper said it expects to burn through another £90m in cash this year.
It has recorded negative cash flow of £60m so far in the current financial year and is on track for another £30m by April, executives told a meeting at its King’s Cross headquarters.
The outflow so far is roughly equivalent to last year, when Guardian Media Group, the publisher of the Guardian and the Observer, went on to report a loss before tax and exceptional items of £68.7m. After tax and one-off charges, the company’s losses topped £200m.
The Guardian is seeking to sharply cut its costs by laying off staff, reducing the size of its office and scaling back its overseas ambitions. The cuts have not yet staunched the flow of red ink, however.
Its losses are funded by the Scott Trust, a charitable trust set up to secure the future of the Guardian. The cash reserve was depleted by £95m last year to leave a reserve of £743m. The further negative cash flow this year is likely to erode the endowment again.
Times are so hard that management is even considering closing the lentil bar!