Before it is too late, I’d like to see these companies — especially companies still in or going into bankruptcy — try more models:
* staying in print but splitting up the functions of the company andoutsourcing everything possible;
* investing in a widely distributed network of independent local and interest sites with the company adding value with curation and sales;
* creating a pure ad network;
* creating a very high quality product and — yes — charging a lot for it;
* creating a series of special-interest niche services and, in some cases, publications;
* creating the still mostly free but higher value craigslist with more curation for quality and more services;
* experimenting with new services for local merchants — especially those too small to ever have afforded big, inefficient newspapers — including helping them succeed through Google, Yelp, et al;
* creating citizen sales forces to scale while serving those small merchants;
Tag Archives: finance
Johnston Press speculation over its likelyhood of refinancing growing debt. Position described as “perilous”.
Archant, the largest independently owned regional newspaper group has reported profits down 9.9% year on year, to £13.1m for the first half of 2008.
Richard Jewson, Archant Chairman: “We have entered a period of significant difficulty for the regional press, evidenced by share price movements of quoted peer companies, with both cyclical downturn and structural changes impacting the sector. The depth and duration of the downturn is as yet unclear and we expect the difficult trading conditions to continue for at least the next year.” Press Gazette article
Interim results highlights
Archant’s latest (2008) half-year financial result headlines include:
• Operating profit before amortisation of intangible assets and exceptional items was down 9.9% at £13.1m (2007: £14.5m)
• Turnover down 5% at £93.6m (2007: £98.5m)
Trinity Mirror saw its share price fall by as much as 29% following the reaction to its warning of profits down by 10%. The profit warning preceds the interim results due on 31st July 2008.
Sly Bailey, the chief executive of Trinity Mirror, said: “We can’t defy the gravity of the advertising market, or the economy. All we can do is understand and react to what is going on, building our digital business and managing our cost base.” (Times 30.06.2008)
In 2005, the share price was over 800, it stands on 30th June at 110. Share price (Yahoo) (long term)
Advertisement revenues in Trinity Mirror’s regional papers for houses, cars and jobs have fallen particularly sharply, as the economy has slowed and the housing market tumbled. Revenue from property ads fell 17.1 per cent in the half-year, while motor ads were down 17.5 per cent and recruitment fell 8.4 per cent. (FT Maggie Urry, 30.06.2008)
Trinity Mirror trading update in full.
The Welsh Assembly has provided a grant of £600,000 to Golwg to produce a Welsh language website. Golwg was established in 1988 and currently publishes a Welsh language magazine. Several media companies tendered for the grant which will equate to £200,000 per year over the next three years. The creation of a daily updated Welsh language news site will require around 14 new roles to be created at Golwg.
Further coverage: Hold The Front Page
Northcliffe Media – regional publishing division of DMGT reported a £4.9m fall in operating profits to £33.8m; advertising revenues fell by 3.8% and circulation revenue also declined by 3%. (Half year results for the period ending 30th March 2008)
Group results in detail:
Johnston Press facing £700m net debt ( April 2008 ) and a market captialisation of £330m plans to raise £212m in a discounted rights issue. The share price fell 21p on this news to 114.75. Malaysian group Usaha Tegas stake in Johnston Press will rise to 20% as a result.
Press coverage from sharecast: Johnston Press
Johnston Press group in “perilous” position: