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The decline continues

IRE60

Via the Campaign site - report on the worsening state of print. (Cant find it on Neilsons' site). Some of the budget cuts are savage:

Newspaper revenues fall amid talk of joint ad sales

The national newspaper advertising slump has worsened since the Brexit vote, with revenues crashing 18% year on year in August, making it the worst-performing month of the year so far.

Print ad sales dived 14%, or £95m, in the first eight months of the year to £575m from £670m in the same period a year ago, according to Nielsen.

Newspapers got a brief respite around the Brexit referendum, when ad sales fell only 4.5% in June and 11% in July. Every other month this year has seen a fall of at least 14%.

The newspaper print ad market fell 13% in 2015 and 9% in 2014.

A number of high-profile brands abruptly slashed their print ad expenditure in favour of Facebook and other digital channels.

Tesco cut spend by 85% year on year in the first eight months of 2016 to £1.8m, O2 reduced its outlay on print ads by 45% to £4m and Marks & Spencer dropped its spend by 28% to £7m.

Worsening revenues will add to pressure on newspaper owners to consider pooling their ad sales in a single sales house in order to gain scale in their negotiations with media agencies, improve efficiency and cut costs.

News UK, Trinity Mirror, Telegraph Media Group, Guardian Media Group, DMGT and Northern & Shell have been in talks since at least May, when Campaign first reported that discussions had begun.

Steve Booth, chairman of MC&C and co-founder of BLM, has been leading the initiative, dubbed Project Juno.

Newspapers are understood to have commissioned Enders Analysis and lawyers to report on how a joint ad sales house might work and the likely obstacles emerging from a Competition

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Loafing Oaf

JTMan wrote: »

Back to the main problem ... the competition authorities will have a canary if INM want editorial control over the Examiner. Daily or weekly. I think it is highly unlikely to be approved.

I wonder what attitude the competition authorities take if it comes down to a stark choice between a given publication/radio station being taken over by Denis O'Brien/INM and closing down...You occasionally hear talk of the Broadcasting Authority forcing Communicorp to sell Newstalk, which would surely in practice mean forcing its closure.

JTMan

In the case of the Irish Examiner I cannot see it coming down to closure or INM acquisition. Whilst there may be no suitors for the small regional LM publications, LM is likely to get a few suitors for the Irish Examiner. Management buyout of the Irish Examiner is another option.

JTMan

INM to merge ‘Herald’ and ‘Sunday World’ newsrooms. Story here.

I thought that INM merged newsrooms years ago?

Not a single mention of The Irish Daily Star in the article which is probably not a good sign for the publication.

JTMan

INM have published their results:

http://www.inmplc.com/~/media/Files/I/INM/investor-docs/reports-and-presentations/2016-preliminary-results.pdf

- Newspaper advertising revenue down to 63.9 million from 70.4 million.
- Digital advertising revenue up from 12.5 to 15.1 million.
- Revenue from sale of newspapers and magazines down to 95.8 from 101.1 million.
- Revenue from distribution/commercial printing activities up to 148.6 from 135.4.

Newspaper sales revenue and advertising revenue continue to suffer. Online digital revenue continues to increase but not enough to cover lost newspaper revenue. Distribution revenue continues to go up as INM diversify their distribution income.

IRE60

I had to do a bit of 'bird' and then 'went on the lamb' - but ar ais aris!

C

manageit

IRE60 wrote: »

I had to do a bit of 'bird' and then 'went on the lamb' - but ar ais aris!

C

Fully rehabilitated, I hope.

IRE60

manageit wrote: »

Fully rehabilitated, I hope.

100% yer Honor

IRE60

JTMan wrote: »

INM have published their results:

http://www.inmplc.com/~/media/Files/I/INM/investor-docs/reports-and-presentations/2016-preliminary-results.pdf

- Newspaper advertising revenue down to 63.9 million from 70.4 million.
- Digital advertising revenue up from 12.5 to 15.1 million.
- Revenue from sale of newspapers and magazines down to 95.8 from 101.1 million.
- Revenue from distribution/commercial printing activities up to 148.6 from 135.4.

Newspaper sales revenue and advertising revenue continue to suffer. Online digital revenue continues to increase but not enough to cover lost newspaper revenue. Distribution revenue continues to go up as INM diversify their distribution income.

Yes, Newspread bringing in the cash! Nothing out of the blue bar the addendum to the notice which lead to this gem:
https//www.irishtimes.com/business/media-and-marketing/inm-chief-made-protected-disclosure-under-whistleblower-rules-1.3019233

Jesus that makes things difficult for all - the pricetag for Newstalk was 'given' to the Indo i believe - they took a different and much lower valuation an an asset never having made a serious crust and with limited scope to do so in the future

JTMan

Welcome back IE60.

It certainly appears that there are some serious corporate governance concerns over the botched CommuniCorp acquisition. Why on earth anyone would want to own a declining radio station these days, let alone pay a premium price, is beyond me.

IRE60

Cheers JT

Maybe they didn't want to own it, maybe someone just wanted to sell it!

If you look at it strategically it's back in the 80's/90's when IN&M last had a radio station. They divested of all that. Then out of the blue, and they don't have enough trouble with their core business, they 'decide' to buy an ailing radio station. I wouldn't think so.

It has to be said, it was an 'all in' move by Robert Pitt. He's legally protected from dismissal at this point (I believe) but it means that his days are numbered.

JTMan

The Sunday Business Post reports that the Irish Times may bid for the Irish Examiner.

IRE60

JTMan wrote: »

The Sunday Business Post reports that the Irish Times may bid for the Irish Examiner.

Do they have the money? Lost 1.1m last year - i don't think they are in the acquisitions business at the moment.
Sunday Times say that the Indo looking at buying trade publications.
All very confusing!

JTMan

The Irish Times have around 10 million in cash despite the losses. They have the liquidity. Also, the Irish Times are earning a lot of distribution and printing revenue from the Examiner. If someone else purchasers it then that revenue stream may disappear. That said, acquiring another legacy newspaper does not seem a good long term strategic decision.

Loafing Oaf

JTMan wrote: »

The Irish Times have around 10 million in cash despite the losses. They have the liquidity. Also, the Irish Times are earning a lot of distribution and printing revenue from the Examiner. If someone else purchasers it then that revenue stream may disappear. That said, acquiring another legacy newspaper does not seem a good long term strategic decision.

Well the myhome deal was ten years ago, maybe they're itching to do another big one.:P Perhaps looking at a 2 for 1 online subscription? Still hard to see the business rationale whatever...

Harry Palmr

Sure the IT owning de papure is inimical for a competitive market.

JTMan

11 Northern Irish regional newspapers are to close. More here.

An Ciarraioch

JTMan wrote: »

11 Northern Irish regional newspapers are to close. More here.

The Indo already owns many Southern regional papers and the Bel Tel, so would have made sense for them to take the titles on?

IRE60

compare and contrast: (fromhttp://www.pressgazette.co.uk)

The Financial Times has revealed that it now has a record 650,000 digital subscribers with gains fuelled by Brexit and the US presidential election.

In â€œannual resultsâ€ it also confirmed that digital revenues have now overtaken print.

Privately-owned Japanese company Nikkei bought the Financial Times in November 2015 for Â£844m.

The FT said it will not be releasing profit and loss figures.

The title said digital subscribers grew 14 per cent year on year to 650,000 in 2016.

Print circulation fell 6 per cent year on to 184,279 in February. The FTâ€™s average daily UK print circulation is 61,158, of which 20,428 are bulk copies distributed at places like hotels and airports. The rest of its print circulation is in Europe (59,771), Asia (27,572) and the US (35,778).

In the weeks surrounding the UK referendum on leaving the European Union and the US presidential election, the FT says it says new subscriber numbers were up 75 per cent and 33 per cent respectively.

FT chief executive John Ridding said: â€œOur first year in partnership with our new owners Nikkei saw the FT achieve record levels of paid-for readership and investment in new digital products and revenue streams.

â€œThese will help ensure the sustained success of the FTâ€™s business transformation and support for our unrivalled quality global journalism. We are developing substantial areas of cooperation with our partners at Nikkei, based on our shared values and vision.â€

Loafing Oaf

An Ciarraioch wrote: »

The Indo already owns many Southern regional papers and the Bel Tel, so would have made sense for them to take the titles on?

Those names don't ring many bells with me, wouldn't say they're among the most prestigious NI regionals...

IRE60

Have a look at the financials at the bottom of this page

https://companycheck.co.uk/company/NI004828/OBSERVER-NEWSPAPERS-NI-LIMITED/companies-house-data

You can see that the money was flooding out of the business - if they shut now they might squirrel away a few quid.

Harry Palmr

The FT is like Private Eye, a very specific but quite large niche publication. Very hard to compare any standard Mon-Sat paper with it.

JTMan

IRE60 wrote: »

You can see that the money was flooding out of the business - if they shut now they might squirrel away a few quid.

Interesting. A familiar story of a small legacy media group where circulation is collapsing, advertising is collapsing and there is no real digital revenues. Nobody would have purchased Observer Newspapers NI in their right mind.

This does not bode well for other small regional publishers such as Landmark Media Investments.

JTMan

Looks like The Irish Times may acquire the Irish Examiner ... http://www.independent.ie/business/media/inm-is-not-in-talks-to-buy-the-irish-examiner-despite-reports-35628197.html

IRE60

Can't see the indo ever being allowed buy the Examiner - I mean they are still trying to get their hands on Celtic and it's gone for a review by the BAI.

IRE60

There’s a really interesting set of results in DMGT (Daily/Sunday Mail etc)
The Press Gazette do a decent summary and at the bottom is a link to their release.

http://www.pressgazette.co.uk/mail-online-boosted-revenue-to-60m-in-first-six-months-but-not-yet-in-profit/

https://www.dmgt.com/~/media/Files/D/DMGT/RNS%20release.pdf

Really interesting, sometimes diverse, group of companies – e.g. they own a company called RMS:
"RMS is the World's Leading Catastrophe Risk Modeling Company
From earthquakes, hurricanes, and floods to terrorism and infectious diseases, RMS helps financial institutions and public agencies understand, quantify, and manage risk"

That’s a class bit of Modeling!

It’s interesting how they diversified over the years. I know their ‘information’ business was strong years ago, their Events business is fairly legendary in the UK as well – then there are the papers!

JTMan

I think you linked to a different article. The Press Gazette DMGT results article is here. Mail Online continues to perform.

It is interesting as to how diversified unrelated revenue streams are keeping some newspaper groups going. INM is being helped, in no small part, by revenue from distributing non-newspaper goods.

IRE60

can't beat the auld copy book!

Amended that link (dirty word that, link)

C

JTMan

Easons have exited the distribution business selling their stake in EM News Distribution to Menzies. http://www.irishtimes.com/business/retail-and-services/menzies-buys-eason-s-newspaper-distribution-arm-for-3-6m-1.3101394?mode=sample&auth-failed=1&pw-origin=http%3A%2F%2Fwww.irishtimes.com%2Fbusiness%2Fretail-and-services%2Fmenzies-buys-eason-s-newspaper-distribution-arm-for-3-6m-1.3101394

IRE60

I suppose it right for Easons to concentrate on it's (now) core business. It was big business at one point, when the newstrade was big business for Easons, but possibly now it’s more of a hindrance.

Menzies specialise in that sector and its probably a good move for both companies.

JTMan

Very surprising that INM and Celtic Media have walked away from the proposed INM acquisition of Celtic Media. Anyone hazard a guess as to why?