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News Group Newspapers, which publishes The Sun, has disclosed the amount it sets aside in rebates for its advertisers and their agencies for the first time in its company accounts, Campaign first reported.
The Sun made provisions for £8.1 million ($9.9 million) in rebates and discounts to pass on to advertisers and agencies at the end of the financial year, according to documents filed to Companies House last week.
Accounts - Company - £5 - Rebates - Underestimate
The accounts also reveal that the company had initially set aside £5.8 million ($7.1 million) for rebates in 2015 — an underestimate, according to Campaign.
A source told Campaign the unexpected larger rebate payout led to the company needing to reduce its turnover and profit by £2.3 million ($2.8 million) in its restated 2015 accounts.
News - Group - Newspapers - Rebate - Provision
Here's how News Group Newspapers describes its rebate provision:
Sister company Times Newspapers disclosed in its filings that it too pays rebates to advertisers, but the company did not provide details on how much it had set aside for 2016. The Times owner also had to reduce its profit and revenue — by £2.4 million ($2.9 million) — in its restated accounts.
Murdoch - Newspapers - Guardian - Daily - Mail
The two Murdoch newspapers follow The Guardian and The Daily Mail in disclosing their rebate payouts. The Daily Mail and General Trust said it had set aside £26.5 million ($34.9 million) in cash and discounts for advertising agencies and advertising clients in the year to September 2015. The Guardian Media Group did not disclose its figure.
Despite being commonplace in the UK, media...
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