The Guardian US has slashed its revenue forecast for 2016/17 amid “challenging trading conditions,” according to Politico.
The American arm of the Guardian Media Group was predicted to turnover $32.2 million (£24.8 million) in the 12 months to April 2017, Politico said, but this has been cut by more than $12 million (£9.2 million).
It follows Guardian US posting revenue of $15.5 million (£12 million) in the year to April 2016, but a loss of $15.85 million (£12.2 million) in the same period.
“Online traffic increased, but the rosy revenue projections never materialised,” Politico reported.
Guardian US is now cutting costs in a bid to help Guardian Media Group break even by April 2019. Some 270 staff have left voluntarily as part of the efficiency drive.
The Guardian Media Group is yet to respond to Business Insider’s request for comment.
A spokeswoman told Politico: “We are committed to Guardian US and to building on the remarkable success of our journalism. However, we said in January that we want Guardian Media Group to break even at an operating level within the next three years and that no part of the business can be immune from tough action to secure the Guardian in perpetuity.
“Given the challenging trading conditions, we are moving quickly in the US to rebalance the business model and focus on cost control, to ensure we can continue to serve our loyal and growing readership.”
Separately, The Guardian’s governing body, Scott Trust, has appointed former TV producer Alex Graham as chairman. The founder of production company Wall to Wall will take up the post once promised to former editor Alan Rusbridger. Graham has served on the Scott Trust board for four years.
Business Insider Emails & Alerts
Site highlights each day to your inbox.