In August 2023, Indian Printer and Publisher published IppStar’s (www.ippstar.org) quick analysis of nine years of financial data reported by most, if not all, of the significant newspaper groups in the country. At the time we found that although there was a recovery after the collapse of the industry that began well before the Covid-19 pandemic, it was far short of a real recovery. Ad revenues were perhaps going to some of the major newsgroups at very low rates and cannibalizing the revenues of some of the smaller groups. Mind you none of the newspaper groups in our survey are small, each of them has circulations that rival news dailies, globally.
Our selected sample update again covers newsgroups that publish in Assamese, Bengali, English, Gujarati, Hindi, Kannada, Malayalam, Marathi, Oriya, Tamil, Telugu, and Urdu. Many of the groups produce dailies in more than one language, and our financial data includes all the publications of each group and in most cases, their other periodicals and digital and electronic media activities. Our sample represents a substantial portion of the entire Indian newspaper industry – perhaps 85 to 88% in terms of its overall revenues.
In this comparison of FY 2021-22 and 2022-23 results, only 10 of our 35 newsgroups show an increase in both profit and EBITDAApart from their other periodicals and other book publishing and media activities, our sample cohort of 35 groups publishes to our knowledge, the following 60 dailies – Andhra Jyoti, Anandabazar Patrika, The Telegraph, Desh, Amar Ujala, The Assam Tribune, Dainik Asam, The Northeast Times, Bartaman, The Times of India, NavBharat Times, Economic Times, Maharashtra Times, Mirror, Vijaya Karnataka, Dainik Bhaskar, Business Standard, Dainik Prabhat, Dainik Bhaskar, Divya Bhaskar, Sambad, The New Indian Express, Dinamani, Aamar Asom, Purvanchal Prahari, Meghalaya Guardian, The North East Times, Hari Bhoomi, O Heraldo, Hindustan, Hindustan Times, Mint, Sakshi, Dainik Jagran, Mid-day, Nai Dunia, Inquilab, Punjabi Jagran, Kannada Prabha, The Hindu, Indhu Tamil Thisai, Lokmat, Mathrubhumi, Prabhat Khabar, Pudhari, Rajasthan Patrika, Sandesh, Dina Thanti, Tarun Bharat, Namaste Telangana, Telengana Today, The Indian Express, The Financial Express, Loksatta, Jansatta, Malayalam Manorama, Deccan Herald, Prajavani, Eenadu.
In a quick analysis or comparison of the last two years’ financial data that is accessible or on record, that is FY 2021-22 and FY 2022-23 (the most recent year for which data is publicly available for most of these groups), one sees a continued recovery in revenues but a decline in profit with a few newspaper groups drastically reducing the profit of this cohort by half. The combined revenues of our 35 organizations have risen from Rs 18,888 crore to Rs 22,378 crore, an increase of 19.26%.
However, the combined profit of this group has declined by 51% from Rs 1,906 crore to Rs 937 crore. The decrease in EBITDA by 31% – from Rs 2,962 crore to Rs 2,047 crore is less severe but, nonetheless, substantial. As an industry insider shared with us, the fall in profits is largely due to some leading newspaper groups maintaining or increasing their top-line growth by selling a large number of advertising pages at throw-away prices. This cutthroat business practice has put pressure on the advertising rates of many of the newsgroups in our sample.
In this comparison of FY 2021-22 and 2022-23 results, only 10 of our 35 newsgroups show an increase in both profit and EBITDA. Three publishers have sustained losses in revenue but have maintained an increase in EBITDA. Four publishers have increased their profits but show a decrease in their EBITDA numbers.
Overall, while there is an increase in revenues for 25 of the groups the costs have increased substantially and reduced profits and EBITDA. Looking at the combined trend of costs in the industry, human resource costs have not increased but there has been a significant increase in the cost of raw materials including newsprint and other consumables which reflect an increase in circulation and in some cases, pagination.
Looking at our graph which shows the combined data of these 35 newsgroups over the past 11 years from FY 2013-14 to FY 2022-23, one sees that this cohort has neither recovered to the revenue nor profit levels of FY 2014-15. The FY 2023-24 data that are only partially available, demonstrate continued improvement but not a full recovery.
An industry insider anticipates that the FY 2024-25 results will demonstrate a critical level in the upward trend of the recovery. Moreover, he feels that the results of the current financial year will eventually become the baseline of the industry that could determine its long-term prospects for stability and growth.
