Newspaper publishers Guardian Media Group and Independent News & Media have both posted a fall in profits.

Unveiling results for its financial year, GMG – owner of The Guardian, The Observer and online offering Guardian Unlimited – revealed pre-tax profits down from last year’s record £73.5 million to £67.3m, on turnover of £440m (down from £444m).

GMG’s regional newspaper arm posted its most successful yearly commercial results ever. However, GMG’s profits were hit by the £34m spent on new media operations – five times the previous year’s investment.

Ireland-headquartered INM, meanwhile, posted first-half results showing a 17% drop in pre-tax profits to £35m, hurt by the £300m acquisition of the Belfast Telegraph and the building of a Dublin printing plant.

However, the group also recorded a 4% rise in turnover, with executive chairman Sir Anthony O’Reilly forecasting a better second half. “The group’s performance is testament to the inherent quality of our businesses and our leading brands in each of our markets,” he commented.

News source: Media Week (UK)