The Daily Mail owner and General Trust (DMGT) are looking into possible job cuts due to exceptionally high costs in energy and distribution.
As a result, it said, “DMGT is currently exploring a number of options to mitigate the impact of these cost increases, including a review of employee numbers.”
The company explained, “There have been recent substantial increases in distribution and energy costs, as well as increases in the cost of newsprint at levels not seen since 1996, and these have started to impact the profitability of the newspaper businesses.”
The Daily Mail owner, also owns the Mail on Sunday and the free Metro newspapers.
In the 12 months to the end of September, the Metro newspaper saw revenues plummet by 46% year-on-year and suffered the largest impact during the pandemic which led a slump in commuters.
The company said: “The performance reflects the combination of fewer copies being distributed, as the business has been severely affected by lower commuter volumes, and the weak print advertising market. This resulted in Metro making a substantial loss in the year.”
The MailOnline generated £164m in revenue and the Mail newspapers and websites saw revenues rise by 3% to £518m.
Print saw a decline of 1% in advertising revenues whist the MailOnline was up by 16%, whilst circulation at the Mail titles were down by 3% in the year to £288m.
DMGT said, “The strength of the advertising market, which inherently lacks visibility and is volatile, will reflect the status of the post-Covid-19 economy.
“Circulation volumes of the Mail and i are expected to decline from current levels, whilst Metro’s will depend on commuter traffic.”
The i newspaper, the New Scientist who are also part of the group remains stable bosses said.