Scorecard ‘09: UK’s Top Regional Papers Have Lost Half A Billion In Sales
We said 2009 would be an annus horribilis for newspapers - and that’s exactly what happened.
Total annual revenue at just five of the UK’s leading regional newspaper groups fell from £2.05 billion to £1.54 billion through 2009, according to our calculations now that the results are in. That’s £509.7 million wiped off our local publishers during the downturn year.
How did they respond? By removing an average 15 percent of their costs to protect profitability. The year saw £196.3 million in cuts, from the four out of five publishers which gave details (Newsquest parent Gannett didn’t give a specific number).
Outsourcing and partnership were the trends du jour. But staff bore the brunt - most groups put a fifth of their workers on the bonfire, about 5,000. Johnston Press’ more modest cuts, though, means the average lay-off rate was a marginally more charitable 17.7 percent.
Publishers continue 2010 still in a cost-cutting mood, with the outlook easing and eager for new income streams. But, having knee-capped their own businesses so hard already, are they fit enough for innovating to find a cure?
Here are the depressing details…
—Operating profit down 47.4 percent to £35.9 million.
—Revenue down 23.5 percent to £302.9 million.
—Operating margin down 5.3 percent to 11.9 percent.
—Digital sales up 38.3 percent - uniques up 11 percent to seven million.
—Digital now 10.2 percent of revenue, 18.4 percent of operating profit.
—Sold 30 unprofitable newspapers, cut 1,700 group staff (20 percent), cut group-wide costs by £67.9 million (9.3 percent) to £658.4 million.
—Revenue down 26 percent to $563 million.
—Advertising income (74 percent of total) down 32 percent.
—Digital sales down 20 percent, banner sales up 23 percent - six million monthly uniques.
—Cut 23 percent of costs. Closed unprofitable papers, outsourced printing, slimmed own print presses from 11 to six.
—Cut headcount by 23 percent (1,500) to 5,100, offered furloughs (unpaid leave)
—Owns half of Fish4Jobs, and S1 jobs site.
—Operating profit down 64.7 percent to £24 million.
—Revenue down 21.9 percent to £328 million.
—Margin down from 16 percent to seven percent.
—UK ad sales down 30 percent.
—Circulation revenue down seven percent to £70 million. Daily and weekly ABC (NYSE: DIS) circs fell eight or nine percent, in line with industry average.
—Online ad income didn’t move (£17 million) - uniques up 31 percent to 4.4 million.
—Cut a “massive” £53 million, including staff by 1,131 (20 percent, £17 million) to 4,256, production and distribution by £22 million. More savings coming in 2010.
—Closed three print plants, consolidated subbing, outsourced national sales- now a “much lower cost operating model”.
—Operating profit down 32 percent to £15.1 million
—Revenue down 19 percent to £142 million, ad sales down 29.5 percent.
—Digital revenue up 25.2 percent - monthly uniques up 36.6 percent.
—Cut 17.1 percent (£26.1 million) off costs.
—Cut 18.7 percent of staff, reducing staff costs by 15.4 percent.
—Pension fund deficit of £30.5 million.
—Revenue down 19.5 percent (£103.9 million) to £428 million.
—Operating loss improved from £399.7 million to £90.6 million.
—Operating margin down from 24.1 percent to 16.8 percent.
—Digital revenue down 11.1 percent to £17.1 million.
—Ad sales 26.5 percent (£96.4 million) lower at £272 million, circulation income down 1.8 percent.
—Weekly paper sales down 4.6 percent in second half, dailies down 6.3 percent. Monthly web uniques up 11.6 percent
—Knocked out 12.2 percent of costs (£49.3 million). Outsourcing web platforms, ie. online job ads to Jobsite.
—Cut staff by 438 (6.8 percent) to 5,969.
Posted In: Media & Publishing, Newspapers, Online News
