Digital media startup Tortoise Media disclosed a substantial £2.9 million loss in 2023, casting shadows over its recent acquisition of The Observer newspaper. The financial results, revealed in the company’s latest accounts, have intensified concerns among senior journalists at both The Observer and The Guardian regarding the company’s financial stability.
The “slow news” venture, which combines editorial content with events and podcast production, saw its revenue decline to £6 million from £6.2 million in the previous year. Net assets experienced a significant drop, falling to £1.7 million from £4.1 million, while cumulative losses since its 2019 launch have reached £20.3 million.
Despite these challenging figures, Tortoise reported achieving break-even status in the final quarter of 2023. This improvement resulted from strategic investment decisions and cost-cutting measures, including reduced expenditure on live events, editorial consolidation, and voluntary redundancy programmes. The company’s workforce decreased from 72 to 64 employees during the year.
The organisation’s audio division demonstrated growth through sponsorship, advertising, and intellectual property agreements. Tortoise also launched an exclusive membership network targeting business executives, signalling efforts to diversify revenue streams.
The acquisition of The Observer, finalised this month, proceeded despite significant staff opposition. Tortoise has made commitments to maintain editorial independence, preserve staff terms, and substantially increase the commissioning budget of the 233-year-old publication. The company envisions transforming the Sunday newspaper into a comprehensive daily digital platform, incorporating podcasts, videos, and newsletters.
Recent financial documents reveal Tortoise required additional funding of £1 million in December 2023, attributed to extended corporate sales cycles affecting cash flow. The company secured a further £2.7 million through share issuance and convertible loan notes in 2024, highlighting ongoing capital requirements as it pursues its ambitious expansion plans.
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