Media group DC Thomson has reported “the biggest growth in its regional news business for decades”.
Trading revenue from the Dundee-based group’s continuing operations was “steady” at £143 million during the year to March 31 2023.
The family-owned company highlighted “encouraging” increases in digital subscriptions.
But inflationary cost increases, particularly in paper, external print and associated energy costs, contributed to a 4% fall in gross margins.
The company reported pre-tax losses of £161.5m, which included a £149.9m loss on the value of its financial investments.
DC Thomson restructured earlier this year to focus on areas where it sees opportunity for long-term sustainable growth. Some small and unprofitable titles were closed or sold, and 309 jobs were shed.
Well-loved brands, including the Beano
DC Thomson is home to some of the UK’s best-loved and trusted brands in news, radio and magazines.
Its news publications include Aberdeen-based titles The Press and Journal (P&J) and Evening Express.
The group also publishes The Courier and Evening Telegraph, both based in Dundee, as well as The Sunday Post.
Magazines include The People’s Friend, Stylist, Puzzler and the iconic and much-loved Beano.
Other businesses owned by the group include leading genealogy company Findmypast and technology services firm Brightsolid.
P&J and Courier remain among UK’s top-selling regional dailies in print
Meanwhile, the P&J and The Courier in print form remain in the top three bestselling regional dailies in the UK.
DC Thomson chairman Christopher Thomson said: “While the print market remains challenged, the acceleration of our transformation in the digital space is seeing some real success.
“Our brands are more than mere titles or names, they are brands with a purpose.
“They exist to really help communities and make a positive impact on the lives of those within them.”
Mr Thomson added: “Our strategy is focused on protecting traditional print revenues, while diversifying in growing new revenue streams in digital, B2B and events – and building a profitable subscriptions-centred business.
“Our approach has seen the biggest growth in our regional news business for decades, with communities willing to subscribe to a quality digital news service.
“Among other key growth areas is our energy community, with a portfolio of brands including Energy Voice, Sustainable Growth Voice, specialist marketing agency Fifth Ring and the newly launched E-FWD – a membership programme for those leading the charge in energy transition.”
I am both grateful and inspired by the passion and commitment of our teams who are motivated to deliver value for our communities.”
Mr Thomson went on: “While inflationary and cost-of-living pressures continue, we have the right strategy and leadership team in place to transform the business with real ambition and we’ll continue to invest for growth.
“These are difficult times for businesses and individuals, and I am both grateful and inspired by the passion and commitment of our teams who are motivated to deliver value for our communities.”
Conversation