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October 4, 2010

Stephen Glover questions GMG finances following £463m Auto Trader write-down

By Dominic wireposts

Stephen Glover today questions the long-term financial situation of Guardian Media Group following news last week that Trader Media Group has written £463m off the value of Auto Trader Magazine. GMG owns a 50.1 per cent stake in TMG.

The write-down gave TMG a £503.3m pre-tax loss for the year. But it should be noted, as the Telegraph reports, that TMG has been massively successful in migrating print revenues to digital. The TMG annual report states: “The large majority of TMG’s value now lies with Trader Digital. The impairment does not, therefore, reflect a fall in the actual or inherent value of TMG, but rather the transfer of value from publishing to digital.”

According to a GMG spokesman the write-down “has zero impact on the overall value of Trader Media Group”.

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