Record revenue generated by The Guardian after acquisition of The Observer results in significant reduction of financial losses.
The Guardian achieved a record-breaking financial year, as it slashed losses and saw a notable increase in revenue following the sale of The Observer, according to unaudited financial figures for the year ending March 2025.
The media group reported revenues of approximately £275 million, a 6.7% increase from the previous financial year, reaching £257.8 million. Meanwhile, its losses, or "operating cash outflow," decreased from £37 million to less than £25 million over the same period.
The Guardian's sales growth was primarily driven by digital reader revenues, which increased by over 20% to exceed the target of £100 million. These revenues now account for more than 70% of the group's total revenue.
Revenue from outside the UK also achieved significant growth, surpassing £100 million, while US sales expanded by more than 20% to exceed £50 million.
These results, expected to be published in greater detail later this year, come after the Scott Trust and Guardian Media Group finalized a deal to sell The Observer newspaper to Tortoise Media at the end of 2024. The Observer previously generated around £16 million in annual revenue.
In an internal note to staff, The Guardian's chief financial officer, Keith Underwood, highlighted the impressive revenue growth, stating it was a testament to the quality of their journalism, products, and hard work by the reader revenue team. The number of digital recurring supporters increased by over 150,000 to 1.3 million, generating a significantly higher average revenue per supporter.
The move comes after it was reported that The Daily Telegraph is poised to be sold to an investment consortium led by a US private equity firm, bringing an end to two years of uncertainty over its ownership. Meanwhile, The Guardian is considering expanding its US presence, with US revenue also increasing significantly during its latest financial year. CFO Keith Underwood added that the company's international focus had been strengthened with increased growth in advertising and the achievement of notable growth in the US.
- The Guardian's success in the financial year ending March 2025, marked by reduced losses and a surge in revenue, can be attributed in part to the growth in digital business revenue, which increased by over 20% and now constitutes more than 70% of the group's total revenue.
- The technology sector also played a significant role in The Guardian's improved financial position, as revenue from outside the UK surpassed £100 million and US sales expanded by more than 20%, indicating a strong focus on and success in the international business landscape.
