National World shares surge after reassuring investors of sturdy revenue
Media outlet National World had its shares soared today after it confirmed to investors that its full revenue would likely hit £85m – despite the decline in print.
Its trading performance in the second half of the year exceeded the company’s expectations, with its digital presence up around 20 per cent in the year to January 1, 2022.
Shares surged 25 per cent to 29p per share by market close.
The upbeat results follow the acquisition of JPI Media and its subsidiaries, which was completed at the beginning of the year, which forms part of the business’ “modernisation” plans.
National World’s advertising revenue has also recovered, it said in a regulatory filing, after the pandemic knocked print sales and distribution, and costs climbed.
However, print revenue is expected to be down around three per cent in the second half, year on year, after falling nearly 10 per cent in the first half of 2021.
Management is plotting more acquisitions in the year ahead, National World added, in a bid to bolster its digital offering as print revenue struggles to get off the ground.
Further deals will also look to broaden its content base beyond news, though what this might look like for the company is not yet known.
“Whilst the trading environment remains uncertain due to the pandemic and rising newsprint and energy prices, the board looks forward to reporting further progress in 2022 and beyond,” the media outlet said.