Telegraph Media Group Circulation and Revenue Figures Under Auditor Review

Telegraph Media Group has initiated an independent review into its reported circulation figures and certain revenue recordings between 2020 and 2023. The move follows concerns raised by the acting Chief Financial Officer, Cathy Southgate. She took over the role after her predecessor, Cormac O’Shea, departed early last year amidst an ongoing government investigation into the proposed sale of the business to an Abu Dhabi investment vehicle.

The review, being carried out by consultancy firm Protiviti, will delve into the company’s governance framework and its corporate risk management systems. While some concerns about revenue reporting have emerged, Telegraph Media Group maintains that a £1.8 million adjustment anticipated in its draft 2024 accounts remains non-material, representing less than 0.02 per cent of the company’s revenue over the last four years.

A spokesperson described the auditor engagement as a “routine governance review,” stating that such evaluations are common for an organisation of this size. The review will also examine broader risk management processes, categorised by the group as standard procedural audits.

Protiviti was appointed for the review after Cathy Southgate raised these accounting issues with Chief Executive Anna Jones. PwC, which audits the Telegraph Media Group annually, declined to comment on the ongoing investigation.

These developments coincide with uncertainties surrounding the future ownership of Telegraph Media Group. RedBird IMI, a joint venture backed partly by an Emirati royal, has overseen its operations for the past ten months but has yet to secure a buyer. A £500 million valuation has reportedly been attached to the titles, including the Telegraph and its sister publication, The Spectator.

RedBird IMI had been in contention to convert its debt holdings into equity ownership. However, concerns from UK ministers about the potential influence of foreign ownership on British media assets blocked the move. As a result, the fund has struggled to recoup its investment or close sales to alternative buyers willing to meet the valuation target.

This situation comes after the Telegraph titles were wrested from the Barclay family nearly two years ago in a £1.2 billion dispute with Lloyds Bank over unpaid debts. Despite the adjustments and review, the Telegraph Media Group works to reassure stakeholders that these developments will not significantly impact its financial health.