Polaris Media’s revenues from digital subscriptions compensate for the decline in paper revenues, according to the media group’s quarterly report.
– There are digital advertising and subscription revenues that contribute to growth, while there is still a fall in paper-based revenues. We nevertheless see that the paper newspaper is still an attractive product for our subscribers and advertisers, so the fall in paper-based revenues has been reduced from earlier periods, ”says CEO Per Axel Koch.
The company increased its revenue by NOK 10 million to NOK 405 million in the fourth quarter of 2018. At the same time, costs increased by NOK 9 million.
The operating profit increased by NOK 3 million to NOK 24 million, while the bottom line – profit after tax – is up to NOK 15 million, a sharp improvement from a loss of NOK 1.8 million in the same quarter in 2017.
Polaris Media consists of media houses Adresseavisen, Trønderbladet, iTromsø, Sunnmørsposten and Romsdals Budstikke.
Digital subscriptions increased by 44 per cent to more than NOK 64 million in the last quarter. In total, the media group had a subscription growth of 3 per cent to 201,000. Subscription revenue increased by 6 percent.
– We are getting more and more subscribers and we are pleased that the number of subscribers has increased by more than 6,000 in 2018 to more than 200,000 subscribers, writes Koch in the quarterly report.
Digital advertising growth
At the same time, digital advertising revenues increased by 9 per cent, while paper-based advertising revenues fell by 5 per cent. Overall, however, this item ended at the same level as in the last quarter of the year before.
The company states that the increase in value of Finn.no of NOK 31 million is recorded over the Group’s other income and expenses. The classifieds company is now valued at NOK 1.3 billion.
A dividend of NOK 1.75 per share has been proposed for 2018.