National World releases half-year results

News
02/08/2024 08:05

Publisher National World has released its half-year financial results for the 26 weeks ended June 29, 2024.

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National World’s report is as follows:

Commenting on the results, Executive Chairman David Montgomery said: “The improved results and significantly higher profits are the result of expert integration of acquired businesses, as well as a vigorous restructuring of the operating model based on original, monetized content, a reskilled talent base and greater engagement with registered customers.

“We are investing in automated processes combined with the development of a social media platform that deepens relationships with communities and interest groups to regain key markets.

“At the same time, our expert and specialist content in areas such as business and sports benefit from a nationwide presence that will be better represented by the Group in the future to promote data and sales.

“National World also recognizes the appeal of consolidation, extracting significant immediate synergies and equipping acquired businesses with innovative tools to grow exponentially.”

• Total revenue up 17%, digital revenue up 12%, net cash balance £13.0m
• Total revenue rose 17% to £48.8m, with Q1 seeing a 19% year-on-year increase and then a 16% increase in Q2.
• Solid digital revenue growth of 12% year-on-year to £10.0m, boosted by acquisitions in 2023. The business is moving away from page views (PV) metrics in favour of what our clients and advertisers see as higher-value content, as evidenced by our 12% growth in digital revenue despite a 4% decline in PV, and 25% growth in video revenue despite a 14% decline in video views.
• Event revenue of £2.5m represents a 92% year-on-year improvement, benefiting from the acquisition of Insider Media on 30 April 2023. 2024 is a transformational year for our events business, with total revenues set to exceed £5.0m. The Group will deliver 100 events across the UK during the year and 50 sector networking breakfasts. Sector specialisms include finance, real estate, manufacturing, community and practice. This business operates in a highly rated market and our growth in 2024 makes it a significant diversification for the Group.
• Adjusted EBITDA of £5.0m, up 61% and adjusted operating profit of £4.7m, up 62%. EBITDA margin increased to 10%, an improvement of 3pp compared to the prior period. Contributing factors to the improved performance include the benefits of acquisitions completed in 2023, for which there is no full comparative period, and the Group’s accelerated plans, delivered in the second half of 2023, to implement the new operating model.

Acquisitions and disposals

On 31 March 2024, the Group disposed of Press Computer Systems Limited (“PCS”) to Naviga 1 UK Limited (“Naviga”), which it acquired six months previously as part of the acquisition of Midland News Association (“MNA”). The Group recorded a gain of £1.0 million on the disposal of PCS in its Statutory Discontinued Operations results. The consideration of £3.5 million was received in the form of service credits, which the Group will draw on under its five-year software agreement with Naviga. From 1 July 2024, the Group will benefit from a reduced adjusted operating cost base and cash flow, which is expected to benefit over the next four to five years until the £3.5 million service credit is fully drawn.

The Group has made two acquisitions in 2024: Athletics Weekly was acquired on 31 May and Serious About Rugby League on 8 July, both acquisitions were funded from existing cash resources. The specialist content sites will strengthen the Group’s sports division.

• Strong balance sheet with significant financial flexibility, net cash position at end-29 June 2024 of GBP 13.0 million, with no debt.
• Dividend. A first interim dividend of 0.2 pence per share has been approved and declared by the Board and will be paid on 20 September 2024 to shareholders of record on 9 August 2024.

On 30 May 2024, shareholders approved a dividend of 0.55 pence per share. Payment was made on 10 July in relation to the 2023 financial year results.

Perspectives

The company’s primary goal is to build a sustainable and monetized content business that encompasses its news legacy but with a broader plan across all platforms. This shift in focus has continued despite the economic headwinds of the first half of the year.

July revenues were up 13% year-on-year. The company will continue to benefit from three key drivers in the second half of the year – acquisitions, new launches and relaunches of legacy brands. Tight cost management remains key, as is the case across the sector.

The Management Board confirms its view that business activities will proceed in line with market expectations throughout the year.

Click here to read the full report.

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