Revenue Report: Daily Newspapers Q1 2013

Transcription

1 Revenue Report: Daily Newspapers January to March 2013

2 Newspapers Canada reports quarterly on daily newspaper revenues in three categories: print advertising, online/mobile advertising and circulation. Highlights from Total revenue of $667,230,000 is 10.3% lower than the same quarter last year. Print advertising revenue of $408,483,000 is 16.8% lower than Q1 of Online advertising shows significant growth of 18.5% compared with Q1 of 2012 with a total of $69.421,000; This is higher than in any quarter of Mobile advertising (already included in online revenues) continues to grow dramatically with an increase of 67.7% over Q1 of 2012, resulting in total quarterly revenue of $1,704,000. Circulation revenue is down 2.5% this quarter, continuing the decline which started in Q Total Newspaper Revenues 2013 Print, Online and Circulation Revenues Total revenue in the first quarter shows that the industry declined significantly, with a drop of 10.3% compared to Q1 of In dollar terms, this represents a decline of $76,508,000. This, however, hides some significant increases in online revenues over the same quarter of st Quarter $667,229,000 $743,738,000 $726,138,000 $748,646,000 $725,359, % 2.4% -3.0% 3.2% -14.1% 2 nd Quarter $780,087,000 $793,094,000 $812,701,000 $797,948, % -2.4% 1.8% -12.9% 3 rd Quarter $728,779,000 $690,067,000 $718,212,000 $689,614, % -3.9% 4.1% -15.1% 4 th Quarter $795,495,000 $800,783,000 $861,154,000 $816,697, % -7.0% 5.4% -9.8% Total Revenue $3,048,099,000 $3,010,082,000 $3,140,713,000 $3,029,618,000 % change 1.3% -4.2% 3.7% -12.9% 2012 and 2013 revenues include data from paid AND free daily newspapers year over year comparisons will be influenced Daily Newspaper Revenue Report 2

3 Print Advertising Revenues 2013 First quarter revenue in print advertising is significantly lower than in the equivalent quarter last year. However, the greater granularity of the survey highlights some key annual trends: National advertising has declined by 21% compared with Q1 of 2012; local advertising shows the least decline compared with Q down 8.4%; classifieds continue a long-term decline down a further 22.8% compared with Q1 2012; and flyers/inserts declined 17.3% compared with Q st Quarter $408,482,000 $490,892,000 $473,834,000 $492,085,000 $481,221, % 3.6% -3.7% 2.3% -20.5% 2 nd Quarter $517,437,000 $527,502,000 $550,963,000 $544,597, % -4.3% 1.2% -18.3% 3 rd Quarter $475,679,000 $435,542,000 $464,730,000 $445,668, % -6.3% 4.3% -21.7% 4 th Quarter $535,000,000 $533,621,000 $594,683,000 $558,967, % -10.3% 6.4% -13.8% Total Revenue $2,019,008,000 $1,970,499,000 $2,102,461,000 $2,030,453,000 % change 2.5% -6.3% 3.5% -18.4% 2012 and 2013 revenues include data from paid AND free daily newspapers year over year comparisons will be influenced Daily Newspaper Revenue Report 3

4 Online Advertising Revenues 2013 Online advertising increased compared to the first quarter of 2012 by 18.5%. This might indicate that Canada starting to show a similar rebound that was evident in the US during the fourth quarter of And with the very rapid growth of mobile advertising (revenue increased 68% in Q1 over the equivalent period in 2012), the outlook for online advertising appears to be the bright spot for newspapers currently st Quarter $69,421,000 $58,603,000 $59,743,000 $48,716,000 $42,071, % -1.9% 22.6% 15.8% 6.0% 2 nd Quarter $59,569,000 $65,664,000 $53,338,000 $46,167, % 23.1% 15.5% -1.9% 3 rd Quarter $57,654,000 $54,903,000 $50,026,000 $42,610, % 9.7% 17.4% -3.7% 4 th Quarter $66,489,000 $65,262,000 $61,629,000 $55,101, % 5.9% 11.8% 10.8% Total Revenue $242,315,000 $245,572,000 $213,709,000 $185,949,000 % change -1.3% 14.9% 14.9% 2.9% Excludes certain portal revenue from non-newspaper branded sites. 2012and 2013 revenues include data from paid AND free daily newspapers year over year comparisons will be influenced Mobile Advertising Revenues st Quarter $1,704,000 $1,016,000 $560, % 81.4% 2 nd Quarter $1,830,000 $850, % 3 rd Quarter $1,536,000 $650, % 4 th Quarter $2,854,000 $1,558, % Total Revenue $7,236,000 $3,618,000 % change 100.0% Mobile advertising revenue included in Online Advertising Revenues total. Daily Newspaper Revenue Report 4

5 Newspaper Circulation Revenues 2013 Circulation revenue in the first quarter declined against the same period in 2012 by 2.5%. This continues the decline that started in The survey now tracks digital circulation revenue, which is rising rapidly. Digital circulation revenues represent almost 3% of all circulation revenue for the quarter in dollar volume it is $4.9 million up 181% compared with Q1 of st Quarter $189,326,000 $194,243,000 $192,561,000 $207,845,000 $202,067, % 0.9% -7.4% 2.9% 1.2% 2 nd Quarter $203,081,000 $199,928,000 $208,400,000 $207,184, % -4.1% 0.6% 2.1% 3 rd Quarter $195,446,000 $199,622,000 $203,456,000 $201,336, % -1.9% 1.1% 1.4% 4 th Quarter $194,006, ,900,000 $204,842,000 $202,629, % -1.4% 1.1% -2.2% Total Revenue $786,776,000 $794,011,000 $824,543,000 $813,216,000 % change -0.9% -3.7% 1.4% 0.6% Q increase attributable to change in accounting policy by 1 participant; using prior year policy, the increase over Q1/2009 is approx. 0.5%. Effective Q1 2012, measurement of digital circulation is also included. Daily Newspaper Revenue Report 5

6 Industry Highlights Sound Publishing purchases The Seattle Weekly Toronto Star hopes to grow subscriber base, boost revenues with new product bundle TC Transcontinental extends contract to print retail flyers and adds distribution Star Media Group launches YourHamiltonBiz.com, a new digital news service for the Hamilton region The Free Press in Fernie, BC celebrates its 115th year Glacier announces enterprise-wide augmented reality initiative with Layar Newspapers Canada partners with Canadian Tire Jumpstart Charities to launch new writing competition TC Media acquires Groupe Modulo n=%2flanguage%2fview&&languageid=en_ca The Waterloo Region Record celebrates 135 years years Daily Newspaper Revenue Report 6

7 OCNA launches new Digital Media Study for community newspapers Torstar s The Grid among world s best designed newspapers CMCA now open to all Canadian publications Edmonton Journal wins international award for redesign Toronto Star creates Integrated Solutions team to lead innovation Torstar announces operational changes at Toronto Star The Globe and Mail partners with Telus to launch The Challenge contest for entrepreneurs NADbank releases new research on daily newspaper readership La Presse announces it will launch a free digital edition in April Halifax Chronicle Herald to launch expanded weekend edition, discontinue Sunday paper Toronto Star experiments with e-book subscription model Daily Newspaper Revenue Report 7

8 Methodology and Technical Notes This quarterly survey is conducted on behalf of Newspapers Canada by Totum Research Inc. and provides a high level view of daily newspaper industry revenues. Effective January 2012, data collection is primarily conducted through online survey software. Participation is at an all-time high among paid and free dailies, with only a few papers representing a very small slice of total circulation not providing data. Participating newspapers represent 98% of total daily newspaper circulation. Estimates were made for each non-participating title by developing metrics based on data from participating newspapers of comparable circulation. Beginning with the first quarter of 2012 several improvements were implemented: Print advertising revenue is collected by specific advertising categories (national, retail, classified) as well as flyers/inserts. Print/online advertising revenue now also includes data for both paid and free dailies which prevents a direct year over year comparison with 2011 and previous years. Online advertising revenue excludes certain portal revenue from non-newspaper branded sites and as of 2011 includes mobile revenues. Circulation revenue includes data from both print and digital categories. Report produced by Newspapers Canada. For additional information contact: Kelly Levson Director of Research klevson@newspaperscanada.ca Daily Newspaper Revenue Report 8