The higher proportion of digital revenue, the greater growth in media companies’ total revenue and the greater operating profit margin in 2023, INMA research finds.

The news business remains mostly funded by consumers and advertisers, as diversification efforts seem to have had limited impact on revenue.

This is based on the analysis of 2023 publicly available financial reports and regulatory filings of 43 news media companies or news divisions of groups that are corporate members of INMA.

The median news company saw 51% of revenue from digital activities in 2023. The best performing 25% of companies saw 60% digital revenue, and the worst performing 25% saw 32% digital revenue.

We found the proportion of digital revenue correlated with the year-on-year change of revenue in 2023, as well as with the profit margin (EBIT).

State of media finances

In 2023, the median news media company maintained the total revenue at the 2022 level. That was a tough year with the rising energy costs, living expenses, ad spend volatility, and continued print decline.

The best performers grew revenue by 3%, and the worst saw a 3% decline. Among the fastest-revenue growing INMA members were: The Hindustan Times in India (14% growth in the total revenue year-on-year), Ekspress Group in Estonia (14%), Postimees (9%), Dow Jones in the United States (7%), and Prisa (media unit) in Spain (7%).

The median operating profit margin declined 1 percentage point year-on-year to 6%. Among the most profitable INMA members were: Nine (publishing unit) in Australia (29% profit margin), DC Thomson in the U.K. (26%), Alma Media in Finland (24%), Dow Jones (23%), and Telegraph Media in the U.K. (20%).

Funding sources for journalism

In 2023, the median INMA corporate member was mostly funded by consumers, and 49% of revenue came from print or digital circulation of content. 

The best performers saw 57% revenue from consumers, and the worst performers, 41%.

Advertisers were the second key source of revenue for news media, with 40% of total revenue for the median company coming from advertising in print or digital. 

Despite many years of efforts to diversify beyond reader or ad revenues, the median INMA member saw only 11% total revenue from sources other than consumers or advertisers. These other sources included events, printing services, logistics and delivery, syndication and licensing, marketing services, or e-commerce.

Growth strategies in news media

The growing news companies explain in their reports how they balance investments in digital products and services with the cost control and restructuring of legacy operations.

They invest in brands and content quality. Despite moderate success of diversification efforts, they look for new business lines and partnerships. 

They also expand into new areas through acquisitions.

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