The New Daily struggling with debt

A COMPANY owned by 29 superannuation funds is now on the hook for struggling news site The New Daily as it churns through its initial shareholder investment.

The New Daily managing director Bruce Guthrie.

A COMPANY owned by 29 superannuation funds is now on the hook for struggling news site The New Daily as it churns through its initial shareholder investment.

The website, started by six super funds three years ago, eked out a profit of less than $14,000 in the past financial year on revenue of $280,125, accounts reveal.

At the end of June, The New Daily had just $2.95 million in cash left, and a debt of $3 million to a business tied to its new parent.

It was set up three years ago by Cbus, AustralianSuper, HESTA, LUCFR, United Super and First Super, who splashed $12 million on the venture.

But papers lodged with the Australian Securities and Investments Commission show the publisher was handed over to the Industry Super Holdings group, which is owned by 29 super funds with about six million members.

The Industry Super Holdings annual report shows the shares were acquired for “nil consideration”, meaning at no cost.

Industry Super Holdings was founded in 2006 and primarily operates in the financial services sector through investment house IFM Investors and lender ME Bank.

The New Daily, which owes IFM Investors $3 million, was contacted for comment but did not respond by deadline.

Its managing editor, former Herald Sun editor Bruce Guthrie, is a director of Motion Publishing, which The New Daily contracts to produce content.

While details of the deal between Motion and The New Daily are not available, Motion’s parent company, Solstice Media, made an operating loss for the year to June of $376,398, well above the previous year’s loss of $96,700.

While The New Daily was started as a way to help “financial literacy”, it has been widely criticised for regurgitating news content for free.

AustralianSuper said the move to Industry Super Holdings was simply about expanding the initial investor base.

“The increased shareholding by ISH provides many more industry funds the opportunity to utilise The New Daily over and above the six foundation funds,” it said in a statement.

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