1

The State of Australian

newspapers 2011

January 2012 update

2

Newspaper ad revenue

is driven by Australia’s

economy

3

Newspaper ad revenue is driven by the

level of demand in the economy

4

Newspaper revenue growth has been

impacted by economic conditions

5

Newspapers compete strongly on

display revenue

6

All newspapers

Metropolitans/Nationals

Regionals

NIMs

Communities

-0.7%

-1.5%

+1.8%

-10.4%

+7.0%

-1.7%

-0.6%

-0.7%

-2.3%

-6.1%

YonY change (FY11) $millions (FY11)

$3,529

$1,822

$910

$172

$626

$1,451

$974

$225

$105

$106

41%

53%

25%

61%

17%

SMI % of

CEASA

Total revenue

Sources: CEASA, SMI. For SMI, ‘all newspapers’ includes Street and other advertising in addition to the categories shown.

SMI is an unreliable indicator of printed

newspaper performance

7

All newspapers

Metropolitans/Nationals

Regionals

NIMs

Communities

-0.7%

-1.5%

+1.8%

-10.4%

+7.0%

-1.0%

+1.4%

-2.3%

-2.3%

-4.4%

YonY change (FY11) $millions (FY11)

$2,471

$1,178

$629

$172

$492

$1,451

$974

$225

$105

$106

59%

83%

36%

61%

21%

SMI % of

CEASA

Sources: CEASA, SMI. CEASA display advertising derived by excluding all classified and online search and directory revenues from total revenues. For SMI, ‘all newspapers’ includes Street and other advertising in addition to the categories shown.

Display revenue

... even when looking only at

display ad revenue

8

Printed newspapers also generate

substantial revenue from copy sales

9

Australian newspapers

are well placed to

take advantage

of the future

10

Six of the top 10 news websites are

owned by newspaper publishers

1 ninemsn Nine News ninemsn 2 smh.com.au Fairfax Digital

3 Yahoo!7 News - 7News Websites

Yahoo!7

4 news.com.au News Digital Media 5 The Age Fairfax Digital 6 Herald Sun News Digital Media 7 ABC News Websites ABC 8 BBC BBC 9 couriermail.com.au News Digital Media

10 thetelegraph.com.au News Digital Media

Source: Nielsen Online Ratings/Dec 2011, Current Events & Global News (sub category)

11

And strong future revenues are forecast

12

More than 2x online revenue growth Strongly outperforming US and UK

Digital newspapers have delivered

strong revenue growth in Australia

13

“We have the opportunity to move from setting the agenda each morning....to actually owning the agenda. All day. Every day.”

John Hartigan, Chairman & Chief Executive, News Limited Opening Address, PANPA Future Forum August 2010

Australian newspapers set the

daily agenda

14

Unlike the US and UK

15

1 Yahoo! News 2 CNN Digital Network

3 MSNBC Digital Network

4 AOL News

5 Tribune Newspapers

6 Fox News Digital Network

7 NYTimes.com 8 ABCNEWS Digital Network

9 TheHuffingtonPost.com

10 Gannett Newspapers and Newspaper Division

Source: The Nielsen Company January 2011. Ranking on Unique Audience.

Newspapers have a limited online presence in

the US while the BBC dominates in the UK

1 BBC 11.1m 2 MailOnline 6.2m

3 Guardian.co.uk 5.2m

4 Telegraph 5.0m

5 Yahoo! News Websites 4.5m

6 Newsquest Local Media 2.8m

7 Trinity Mirror Nationals 2.6m

8 The Sun 2.6m

9 MSN News & Weather 2.3m

10 The Independent 2.1m

Source: UKOM/Nielsen via Press Gazette. Ranked on Unique Audience.

16

Australians have downloaded

3 million+ newspaper brand apps

17

... and although early days, tablet users

are already paying to read newspapers

18

Australia continues

to outperform the

US and UK

19

Revenue grew in 2010 following the GFC in

contrast to key international benchmarks

20

Australian newspapers have experienced

the least impact to circulation

21

The Australian newspaper industry

punches above its weight

22

And newspapers command a higher

share of revenue compared to

the US and UK

23

Australia has outperformed other OECD

countries in recent years

24

Australia’s forecast is the best of the

Western markets

25

Australia’s structural

advantages

26

In contrast to the US and UK, Australia has

clear geographic markets, served by

fewer dominant newspaper titles

Source: CIA World Factbook, Sept 2010, CIESIN Columbia University

Australia

Population located in highly concentrated areas, dispersed and discreet

USA

Greater population density.

Less dispersed

UK

Much greater population density

Much less dispersed

Population: 21.8m Pop’n density: 2.8 people/km2

Population: 313.2m Pop’n density: 34.8 people/km2

Population: 62.7m Pop’n density: 260.2 people/ km2

27 Sources: ABC Australia, World press trends 2010, CIA World Factbook

Australia Most markets served by a single metro/ regional daily newspaper

USA Many markets served by multiple metro/ regional daily newspapers or small circulation titles

UK 10 large national daily newspapers dominate and compete with one another

Readership in Australia is concentrated

amongst a small number of newspapers

28

Readership of Australian newspapers is

consolidated across fewer titles with

clearly defined metro & regional markets

29

Australian papers provide mass reach

in all major cities

30

Australian newspaper publishers have

diversified revenue streams

Sources: News Corporation 2011 Annual Report | Fairfax Media 2011 Full Year results presentation | APN 2011 interim results presentation | Seven West Media 2011 Full Year Results Presentation

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