Media group says newspapers and TV business experienced a tough 2012, but are increasing profits this year
Richard Desmond's Northern & Shell has reported a loss for 2012, with Channel 5 posting a deficit of more than £16m as rivals aired events such as Euro 2012 and the London Olympics.
A snapshot of the financial accounts of N&S, owner of Express Newspapers, Channel 5 and OK! magazine, show that it made an operating loss of £5.6m last year.
The loss compares favourably with the £20.8m N&S reported in 2011, but 2012 appears to have been particularly tough for Channel 5, according to figures published on Wednesday.
Channel 5 reported a loss of £16.1m in the first half of 2012 – as advertisers flocked to ITV's coverage of Euro 2012 and viewers headed to the BBC and Channel 4 for the London Olympics – although a much better second half is thought to have left the broadcaster with an annual loss not too much bigger in total.
Total revenues fell 8.6% from £356m to £325m.
N&S said that despite the slump Channel 5 improved its total audience share as well grow commercial impacts – effectively the slots that are bought by advertisers – thanks to shows such as Big Brother.
The slump follows a sterling 2011, Desmond's first full year in control of Channel 5, which saw a 2010 loss of £48m transformed into a profit of £26m.
The channel has experienced a dramatic bounce back so far this year, according to the top-line figures, with a £20.6m operating profit booked in the first six months.
Desmond told the Guardian in a recent interview: "This year should be a record and we estimate earnings before interest, tax, depreciation and amortisation of £50m [for Channel 5]. It would be nice if it was more ... but I am trying."
Express Newspapers, the subsidiary that is home to the Daily Express, Sunday Express, Daily Star and Daily Star Sunday, also experienced a tough 2012, reporting operating profits of £8m in the first six months.
No figure was provided for the full year, but N&S said that the newspaper operations have more than doubled profits to £18m in the first half of this year, indicating the level of improvement in trading.
"Despite continued pressures on circulations and competitor activity [Express Newspapers] revenue remained robust and pre-exceptional operating profits increased," said N&S.
Express Newspapers was forced to make £5m in cuts last year.
The newspaper operation has been slow to embrace digital but N&S said that a £25m-plus investment in a "digital first" strategy is already starting to pay dividends.
Growth across the titles' mobile apps is up 25% year on year in the first half, with page impressions on the newspaper websites more than doubling since January.
This has led to digital advertising revenues rising by 156% year on year; no income figure has been cited but such a growth rate indicates a small base.
Overall N&S said that group revenues fell by 9.68% last year, from £688m to £622m.
The full financial picture for N&S will come when Companies House documents are filed in the coming weeks.
"We are greatly encouraged by the turnaround in our trading results in the first half of this year," said finance director Robert Sanderson. "We are confident that we will continue to build on this much-improved financial performance".
The Health Lottery, the challenger to Camelot's National Lottery launched in 2011, continues be a drain on the business.
The operation made an operating loss of £15.2m in the first half of this year – no figures were given for 2012 but in 2011 it made a pre-tax loss of £28.5m – with N&S maintaining the business "remains in investment phase".
"We remain fully committed," the company said.
N&S said that at the close of 2012 it had a healthy cash balance of £34.5m and no bank borrowings.
• To contact the MediaGuardian news desk email media@guardian.co.uk or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. If you are writing a comment for publication, please mark clearly "for publication".
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Richard Desmond's Northern & Shell has reported a loss for 2012, with Channel 5 posting a deficit of more than £16m as rivals aired events such as Euro 2012 and the London Olympics.
A snapshot of the financial accounts of N&S, owner of Express Newspapers, Channel 5 and OK! magazine, show that it made an operating loss of £5.6m last year.
The loss compares favourably with the £20.8m N&S reported in 2011, but 2012 appears to have been particularly tough for Channel 5, according to figures published on Wednesday.
Channel 5 reported a loss of £16.1m in the first half of 2012 – as advertisers flocked to ITV's coverage of Euro 2012 and viewers headed to the BBC and Channel 4 for the London Olympics – although a much better second half is thought to have left the broadcaster with an annual loss not too much bigger in total.
Total revenues fell 8.6% from £356m to £325m.
N&S said that despite the slump Channel 5 improved its total audience share as well grow commercial impacts – effectively the slots that are bought by advertisers – thanks to shows such as Big Brother.
The slump follows a sterling 2011, Desmond's first full year in control of Channel 5, which saw a 2010 loss of £48m transformed into a profit of £26m.
The channel has experienced a dramatic bounce back so far this year, according to the top-line figures, with a £20.6m operating profit booked in the first six months.
Desmond told the Guardian in a recent interview: "This year should be a record and we estimate earnings before interest, tax, depreciation and amortisation of £50m [for Channel 5]. It would be nice if it was more ... but I am trying."
Express Newspapers, the subsidiary that is home to the Daily Express, Sunday Express, Daily Star and Daily Star Sunday, also experienced a tough 2012, reporting operating profits of £8m in the first six months.
No figure was provided for the full year, but N&S said that the newspaper operations have more than doubled profits to £18m in the first half of this year, indicating the level of improvement in trading.
"Despite continued pressures on circulations and competitor activity [Express Newspapers] revenue remained robust and pre-exceptional operating profits increased," said N&S.
Express Newspapers was forced to make £5m in cuts last year.
The newspaper operation has been slow to embrace digital but N&S said that a £25m-plus investment in a "digital first" strategy is already starting to pay dividends.
Growth across the titles' mobile apps is up 25% year on year in the first half, with page impressions on the newspaper websites more than doubling since January.
This has led to digital advertising revenues rising by 156% year on year; no income figure has been cited but such a growth rate indicates a small base.
Overall N&S said that group revenues fell by 9.68% last year, from £688m to £622m.
The full financial picture for N&S will come when Companies House documents are filed in the coming weeks.
"We are greatly encouraged by the turnaround in our trading results in the first half of this year," said finance director Robert Sanderson. "We are confident that we will continue to build on this much-improved financial performance".
The Health Lottery, the challenger to Camelot's National Lottery launched in 2011, continues be a drain on the business.
The operation made an operating loss of £15.2m in the first half of this year – no figures were given for 2012 but in 2011 it made a pre-tax loss of £28.5m – with N&S maintaining the business "remains in investment phase".
"We remain fully committed," the company said.
N&S said that at the close of 2012 it had a healthy cash balance of £34.5m and no bank borrowings.
• To contact the MediaGuardian news desk email media@guardian.co.uk or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. If you are writing a comment for publication, please mark clearly "for publication".
• To get the latest media news to your desktop or mobile, follow MediaGuardian on Twitter and Facebook Reported by guardian.co.uk 2 hours ago.