2009 in context
During 2007, the Board decided to reduce the Group’s dependence on classified advertising revenues. Following this decision, the Group sold 49.9% of Trader Media Group in June 2007. The proceeds of this disposal were reinvested in long-term assets (joint venture company Emap and an investment fund) from which the Group will not take an immediate return. The result of this rebalancing and diversification of the portfolio is that the Group has significantly reduced its exposure to risk. As anticipated, a further result of this restructuring has been a fall in operating profit (also driven by the recession, which has led to a decline in revenue). In effect, the Group has exchanged short-term profit for long-term security. The strategy is explained in the statement from the chair. An analysis of the results is included in the financial review.