According to results for the year to June 30 2007 filed at Companies House, NI Free Newspapers generated revenues of £8m.
NI Free Newspapers started operations on July 1 2006 and launched thelondonpaper on September 4 that year. It spent £3.1m on advertising and promotion.
The results contain a brief review of the business, stating that the next financial year will reflect the positive impact of higher advertising yields.
When News International launched the paper in a bid to capture the capital's young commuter audience in the afternoons, it met with competition from rival Associated Newspapers' launch London Lite.
The latest newspaper ABC results show that thelondonpaper is still winning the circulation war, distributing 500,792 copies to the Lite's 395,633 in March.
Comments
Scary! with only £8Million in total revenue which equates to around an average of just £33,000 per edition (5 days) they have a very long way to go. The paper needs to get to around £100,000 per edition to reach break even. But break even in this day and age, is risky if prolonged. Idealy the paper needs to get to around £240,000 per edition to sit comfortably as a commercially viable proposition.
It's strange but the two main new Free Sheets in London and the battle to take market reminds me of Robert Maxwells failure to launch the Evening News way back in the late 80's
of course the then Evening Standard held it's position and saw off the Maxwell atempt.
Of course the London Lite and the london paper scenario is different, and is more reliant upon revenue (not ego) But is the revenue availability there. We shall have to wait and see.
Mark Doherty
All very valid points. Also worth remembering that Metro had it's first £1/2m week in advertising revenue after only 9 months and took well over £20m ad. revenue in it's first full financial year........... off not totally dissimilar distributions at that point in it's life......
Times have changed since 2000!
Further problem to be faced, consumer spending cutbacks, which in turn leads to reduced high street sales, which in turn leads to cuts in Advertising spend, because there is just not enough in the budget allocations. Spend therefore becomes more focused and targed to get the highest level of return for each advertising pound spent.
The Papers have to introduce some very innovative attractions to ensure reader receptivity, to allow the direct and subliminal advertisng messages to filter through at optimum levels, Thus making the Advertiser proposition more economically inviting ( added USP) this could be improved quality of content or other strategic plans. Of course I could go on .... but that would require me to issue an invoice for my expertise.
Mark Doherty
It seems like the good times at Metro UK in years 4 to 6 have affected your memory of the difficulties encountered at launch.
Don't forget Justin, I was working at Associated when Metro UK was launched and if my memory serves me correctly, The ES sales team had been asked to joint sell Metro at £5scc for the first 9 months, later moving to £12scc. So, by my calculations, the first fiscal year would have, at best, achieved circ £4m. My, how the memory has faded since 2000!
Michael Craig
Comments
Mark Doherty - 18/04/2008
Scary! with only £8Million in total revenue which equates to around an average of just £33,000 per edition (5 days) they have a very long way to go. The paper needs to get to around £100,000 per edition to reach break even. But break even in this day and age, is risky if prolonged. Idealy the paper needs to get to around £240,000 per edition to sit comfortably as a commercially viable proposition. It's strange but the two main new Free Sheets in London and the battle to take market reminds me of Robert Maxwells failure to launch the Evening News way back in the late 80's of course the then Evening Standard held it's position and saw off the Maxwell atempt. Of course the London Lite and the london paper scenario is different, and is more reliant upon revenue (not ego) But is the revenue availability there. We shall have to wait and see. Mark Doherty
Justin Farnan - 18/04/2008
All very valid points. Also worth remembering that Metro had it's first £1/2m week in advertising revenue after only 9 months and took well over £20m ad. revenue in it's first full financial year........... off not totally dissimilar distributions at that point in it's life...... Times have changed since 2000!
Mark Doherty - 18/04/2008
Further problem to be faced, consumer spending cutbacks, which in turn leads to reduced high street sales, which in turn leads to cuts in Advertising spend, because there is just not enough in the budget allocations. Spend therefore becomes more focused and targed to get the highest level of return for each advertising pound spent. The Papers have to introduce some very innovative attractions to ensure reader receptivity, to allow the direct and subliminal advertisng messages to filter through at optimum levels, Thus making the Advertiser proposition more economically inviting ( added USP) this could be improved quality of content or other strategic plans. Of course I could go on .... but that would require me to issue an invoice for my expertise. Mark Doherty
michael craig - 18/04/2008
It seems like the good times at Metro UK in years 4 to 6 have affected your memory of the difficulties encountered at launch. Don't forget Justin, I was working at Associated when Metro UK was launched and if my memory serves me correctly, The ES sales team had been asked to joint sell Metro at £5scc for the first 9 months, later moving to £12scc. So, by my calculations, the first fiscal year would have, at best, achieved circ £4m. My, how the memory has faded since 2000! Michael Craig