National World reports 9% revenue growth

National World, the publisher of several prominent regional newspapers including the Yorkshire Post and The Scotsman, has reported significant financial growth for the year ending in December 2024, despite the ongoing challenges within the print media landscape.

The company announced revenues of £96 million, reflecting a 9% increase from the previous year, alongside a near-50% boost in pre-tax profit to £4.5 million.

The numbers are small but are significant given the company’s move towards digital subscriptions and enhanced video content. National World noted that the number of paying digital subscribers grew by 17% in 2024, a development driven by the introduction of new subscription packages and less intrusive digital advertising. The publisher’s revenue from digital content now accounts for about 20% of total earnings; traditional print revenue still represents a majority at 72%.

Chairman David Montgomery highlighted that video advertising played a crucial role in this financial upturn. With 78% of online articles featuring video content, local video advertising was said to have significantly propelled sales. Montgomery said: “Acquisitions and launches, including the development of TV, events and social media are driving a new sustainable model for local and national publishing.” The company’s investment in video production capabilities has led to improved engagement, with average viewing time per video increasing by 7% over the year.

Despite these positive indicators, National World continues to navigate challenges linked to economic conditions impacting consumer disposable income and the complexities arising from its ongoing acquisition process by Media Concierge, a deal valued at £65 million. The acquisition has already received shareholder approval and is currently awaiting regulatory clearance.

Operational adjustments have also been a focus for National World, with the implementation of artificial intelligence to automate both production and content resourcing processes. Montgomery remarked that “automation through AI and other efficiencies in the production areas have released resources to focus on specialised monetisable content, particularly in sport, business and lifestyle.” This shift towards automation has led to a significant reduction in workforce, with the publisher noting a 12% decrease in staffing levels over the past year, despite the integration of 300 new employees from various acquisitions.

The year saw National World expanding its portfolio through key acquisitions, including Athletics Weekly, Serious About Rugby League and The Business Magazine, helping diversify revenue streams and boost events revenue by 37%. Overall, National World held 150 events throughout the year, contributing positively to its financial performance.

While somewhat hindered by an impairment of its initial investment in The News Movement — which has not generated expected returns — the company maintained a solid cash balance of £10.9 million at year-end. As it prepares for the operational shift following the takeover, National World’s management remains optimistic about the path forward, proclaiming sustained profitability and digital transformation as core priorities. “These good 2024 results have been achieved despite the combined headwinds of macroeconomic challenge and non-trading distractions,” said Montgomery.

Source: Noah Wire Services