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Publisher restates acquisitions plan as pre-tax profits fall

A regional publisher has restated its intention to look at potential acquisitions after posting a decrease in pre-tax profits last year.

DC Thomson has revealed in its annual report that profits were down in 2019 to £21.1m, compared with £86.4m in the previous financial year.

The Dundee-based group also revealed newspaper print copy revenues had decreased by 2.2pc to £33.4m, although cover price increases had “helped to reduce the effect of the continuing trend in volume declines”.

Newspaper advertising revenues were also down 7.6pc to £13.5m.

The current exterior of the building is pictured.

DC Thomson’s HQ in Dundee

But, in a statement, company chairman Andrew Thomson touted “potential investments and acquisitions”.

In 2019, DC Thomson bought two radio stations and also promoted head of advertising Andy Williams to the new role of chief revenue officer.

At the time of his appointment, the company said “identifying acquisition targets” would form a key part of Andy’s role.

However, DC Thomson has not featured in the bidding war for JPIMedia – with a Times report in August claiming the company had “mainly ruled out bidding because it considers the likes of The Scotsman to be overvalued”.

In his statement, Andrew said: “Our trading operations have been affected by challenges to revenues but the core publishing business continues to trade well in comparison to our peers.

“We believe in the longer-term future of the publishing business and are working on brand extensions and other initiatives to support it.

“There is a strong brand loyalty to our traditional titles and we look to replicate this in the new businesses that we have acquired.

“We are also seeking to develop, source and evaluate new and adjacent lines of business, potential investments and acquisitions.”

2 comments

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  • January 2, 2020 at 2:18 pm
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    “…but the core publishing business continues to trade well in comparison to our peers”
    I can never work out why anyone associated with generating revenue considers an appalling performance to be good because others are doing worse and actually gets away with it.

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  • January 3, 2020 at 10:36 am
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    The acceptance of gross underperformance is rife across the main regional publishers, often glossed over with the excuse that others are performing even worse, this in denial attitude is no only hastening the decline of individual groups and titles but the whole industry itself.

    Until boards and the commercial heads accept the reality of the situation, stop promising ‘jam tomorrow’ and take responsibility by putting cohesive plans in place to remedy and deliver, the downward spiral of losses upon losses will continue.

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