Daily Mail and General Trust has called its recent shakeup, which included the centralisation of two IT departments into one under a single CIO, “decisive action”, as the company reported difficulties in its preliminary results for 2008.
Announcing tough trading conditions in the year to 28 September, the newspaper group said it was time to focus on reducing debt and generating more cash, as it anticipated a fall in advertising revenue of £100 million.
Just a month ago DMGT announced that the IT departments of its Associated Newspapers national newspapers and Northcliffe Media regional papers were rationalising their IT into a single division dubbed A&N Media IT.
In the move Associated chief information officer Ian Cohen left the company at the end of October. DMGT has now described the move as “a structure to share services across both divisions and to improve operational efficiency”.
There are also talks going on between DMGT and newspaper The Independent, to share IT and back office functions to reduce costs, the Financial Times has reported.
“Although the worsening economic conditions had an adverse impact on the newspaper and property business,” said DMGT chief executive Martin Morgan, “we are taking decisive action to defend profitability”. Revenue for the group increased by three per cent to £2,312 million compared to £2,235 million for the same period in 2007. Operating profit dropped by two per cent however.
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