Guardian Australia rejects The Australian’s claims it has two years to prove commercial viability

guardian australia logoGuardian Australia has rejected suggestions by rival publication The Australian its losses “have blown out to $14m”, stating it has in fact had a “revenue increase of 64 per cent last year”.

On Monday The Australian’s media section reported financial accounts for the 12 months ended June 30 showed the losses for the local operation of The Guardian were up from $6m in the prior corresponding period.

The Australian’s report stated: “Journalists, overheads and traffic-acquisition costs are pushing up operating costs as digital ad rates fall through the floor.”

In a follow-up report, The Australian said the digital publication had two years “to prove itself commercially viable before a multi-million-dollar loan is called in”. That loan is held by businessman Graeme Wood.

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