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Profits plunge 25pc at The West Australian newspaper

Tuesday, 2 Aug 2016 10:08:18

Both weekend and weekday circulation has dropped at the newspaper. (ABC News)

The West Australian newspaper has recorded a significant fall in profit in the 12 months to the end of June.

The newspaper, part of Kerry Stokes' Seven West Media group, posted an operating profit of $39.2 million, down almost 25 per cent.

Revenue plunged 12.4 per cent to $228.5 million on the back of a 16.5 per cent drop in advertising and a 9 per cent drop in circulation.

The newspaper's average weekday circulation is now 145,000, down from 157,000, while the weekend edition of the paper averages 241,000, down from 258,000.

However, it has managed to slash costs by almost 10 per cent, from $209.2 million to $189.3 million.

Financial analyst Tim Treadgold said the poor performance was part of the reason the newspaper had moved to cut costs with staff redundancies.

"The figures are alarming and show a significant decline in the paper's revenues," he said.

Media, Entertainment and Arts Alliance state media section president Martin Turner said it was clear the newspaper's model was broken.

He said at least 12 staff had recently been made redundant but the paper was looking to sack more as it tried to reduce costs further.

It had wanted more than 20 editorial staff to leave the organisation, but even after an extension of time, there were not enough takers, Mr Turner said.

It is understood five employees were targeted for forced redundancies on Monday, including senior journalists, photographers and an illustrator. Two more staff members were told to go today.

A source at The West said the atmosphere in the newsroom today was "absolutely toxic" and "dire".

Seven West Media CEO in WA Chris Wharton did not receive a bonus this year, after receiving a $125,000 short-term incentive bonus last year.

In announcing the redundancies in June, Seven West Media said the newspaper was working towards a new organisational structure amid an unstable economic environment.

Seven West's overall earnings, posted today, were slightly below expectations with a net full-year profit of $184.3 million, after last year's loss of $1.89 billion.

The company is preparing to buy the Sunday Times newspaper and its perthnow website, with the deal being reviewed by the Australian Competition and Consumer Commission.

AustraliaPlus


 

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