Scotsman publisher National World forecasts revenue jump as digital investment pays off

Newspaper publisher National World – owner of The Scotsman – has outlined how it now expects overall revenues for 2023 to exceed this year’s as it unveiled its interim results.

National World chairman David Montgomery says: 'The company has successfully commenced the journey to revenue growth in the first half.' Picture: contributed.

The London-listed group, whose other titles include the Edinburgh Evening News, Scotland on Sunday, Falkirk Herald and Yorkshire Post, has revealed how adjusted earnings before interest, taxes, depreciation and amortisation of £3.1 million for the 26 weeks ended July 1 was in line with expectations, while its half-year cash balance was “strong” at £22.1m. It added that its overall full-year expectation is unchanged.

Adjusted revenue in the first half came in at £41.6m, down from £43.5m 12 months previously, and gaining pace in the second quarter, “despite [the] challenging trading environment and against tough comparators”. Interim digital revenues grew 9 per cent, page views jumped 21 per cent, and video views were up by just under half.

Adjusted pre-tax profit amounted to £3.2m from £5.6m a year ago amid investment in new brands, with the latest period also including five acquisitions including that of regional business-to-business media company Insider Media and the Rotherham Advertiser that were announced in May.

The group also noted that a 0.5p per share maiden dividend was paid on July 5, kicking off a “progressive” policy, adding that in the first half it accelerated plans to implement the new operating model, which it said will deliver £1.1m of savings in the second half.

Looking beyond the first half, revenues this month have increased by 2 per cent year on year, with National World “poised to benefit in the second half from at least three of its key elements – the acquired businesses, new launches and relaunches of heritage brands and video and TV expansion”.

National World chairman David Montgomery said: “The company has successfully commenced the journey to revenue growth in the first half. Measures to deliver a sustainable multi-platform business continued apace despite the downturn in the advertising market.

"Five acquisitions in the period and improvements in newly launched online brands are replacing lost revenue from heritage assets, and we now expect overall revenues for 2023 to exceed last year. Strong growth, particularly in video revenue, as well as the accelerated implementation of an innovative operating model will contribute to the delivery of full-year profits in line with expectations.”