In his commentary on the group’s results for calendar year 2023, chairman David Montgomery said: “AI has been harnessed to boost local video advertising sales, video news bulletins and automated print pages.
“We are currently producing around 200 pages per week through AI production and aim to increase this to around half of all pages produced for our weekly titles by the end of 2024. We are seeing promising signs of accelerating growth.”
A National World spokesperson confirmed that production in this respect referred to layout, rather than content.
Montgomery said the business, which owns titles including the Yorkshire Post and The Scotsman, had made “substantial progress” in transforming its brands and businesses.
“Our intent remains to sweep away the last vestiges of an industrial print business to create a professional model with every individual making and being recognised for their unique contribution,” he stated.
National World made seven acquisitions completed in the period, for a total consideration of £14.4m including cash acquired, and funded from its existing cash resources.
National World has also changed the way it reports its results because of the buys.
£1.4m of Events revenue that would have been reported in print advertising previously, is now included in the ‘Other’ division.
Print publishing sales slipped by 2% to £63.6m.
However, in the second half of the year the figure was up 8% on the back of the Insider Media and MNA buys.
Print subscription revenue was flat at £3m.
Digital publishing revenue grew by 13% to £18.4m. However, digital subs fell 6% to £1.5m “due to a re-prioritisation of strategy from subscriptions to audience growth and engagement in our heritage network”.
The Other division revenue was £6.4m, up 120%, and made up of £4m from Events, editorial funding up 20% at £1.8m, and ‘other’ sales from the acquired PCS business of £600,000.
Editorial funding is made up of grants from the BBC for local democracy reporters and from Meta for the funding of 58 journalists.
The overall group had sales of £88.4m, with statutory operating profit of £8m (2022: £8.9m) prior to exceptional costs.
Non-recurring items of £5.4m included £3.6m of restructuring costs that National World said would deliver £6mof annualised cost savings, as well as £1.2m of incomplete acquisition costs, and £400,000 in acquisition transaction costs.
The EBITDA margin was 10.7% (2022: 11.5%).
Newsprint and production costs increased slightly to £12.6m.
National World said these costs continued to be “tightly managed” with price increases in the first half of the year partially mitigated by reduced print volumes, lower pagination and portfolio changes.
Across the full year newsprint prices reduced by 5% year-on-year with price benefit coming through in the second half of the year.
Montgomery said he was still on the lookout for further buys, “primarily targeting businesses that will enhance the group’s digital capability”.
Regarding the outlook, National World reiterated its 2024 sales target of £100m, with an improved EBITDA margin.
In 2024 its acquisitions are expected to more than double their EBITDA contribution.
