Economist Group profits up 9%

Publisher of The Economist reports high profits

Publisher reports profit increase of 9 per cent. Photo: Getty Images

The profits of the Economist Group, the publisher of the Economist, have increased by 8.7 per cent year on year to 31 March 2012, placing pre-tax profits at £64m.

This rise has come despite a fall of 17 per cent in the UK edition’s print advertising this year and a steady circulation throughout the year of 210,384.

Profits from the UK print edition have increased by 8 per cent, whilst there has been a threefold increase in the revenue collected from online-only users, who now number over 10,000. The increase in online use contributed to the total increase in the firm’s revenue by 4 per cent to £361.8m. 

The increased profits for the Economist Group, which is 50 per cent owned by Pearson, the Financial Times Publisher,  will be distributed amongst shareholders through an 8 per cent increase in the dividend to 156p per share. Chief executive of the Economist Group, Andrew Rashbass has also felt the impact of the increased profits, with his total remuneration package totalling over £1m for the first time. This package includes a bonus of £474,000, which has been paid since his appointment to the role in mid-2008, a basic salary of £393,000 and £171,000 in long-term plan payments. 

Despite the increase in profits, editor-in-chief John Micklethwait has seen his total renumberation fall from £644,000 to £631,000, including a salary of £294,000 and a bonus of £209,000.