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Summary:

FT Group profit rose 21 percent to £84 million on 11 percent better revenue of £374 million in the first half of the year, supposedly on d…

FT Group profit rose 21 percent to £84 million on 11 percent better revenue of £374 million in the first half of the year, supposedly on digital and subscription growth. The group also comprises the Interactive Data unit, but the news publishing wing grew more – sales up 13 percent to £188 million, profit up 26 percent to £30 million.

Advertising revenue was up only two percent and that “remains difficult to predict”. But FT’s strategy is clear – it’s increased its digital revenue composition from 28 percent of the whole in 2000 to 63 percent in 2007, and slimmed its reliance on advertising from 30 percent to 52 percent of sales in the same period. Despite “tough macroeconomic conditions”, FT forecasts profits even if ad sales are flat.

But, despite FT.com unveiling a new access model in November (giving five articles free per month, and a further 30 for those who register), we’re still seeing a plateau in paying subscribers. Results said subscriber levels were only “maintained” at “around 100,000″ – the same figure as last month, when MD Rob Grimshaw told me sub levels were “largely static”. Non-paying registrations, of course, have tripled since the switch, from almost 150,000 to 500,000 at present – so FT.com isn’t converting many of these to paying subs but is trying to monetise them through other means, like direct marketing and on-site advertising.

Parent company Pearson’s (NYSE: PSO) group earnings showed pre-tax profit up 57 percent to £95 million on 16 percent better sales of £1.96 billion.

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  1. did they comment on whether or not news corp's ownership of wsj is having a positive or adverse impact on advertiser or online use? it would seem that as rupert steers the wsj into competition with the nytimes, the financial community will shift towards the ft.com more so that they had already been doing. it would be interesting to hear how the ft plans to compete against wsj.com now that they are doubling down on things like "heard on the street." ft should buy breaking views just to throw it back in news corp's …

  2. Robert Andrews Tuesday, July 29, 2008

    Nope, they won't comment on what a competitor is doing like that, but they have spoken previously about the gap between what was then rumoured to be a free WSJ.com and its own part-free model
    http://www.paidcontent.co.uk/entry/419-interview-rob-grimshaw-md-ftcom-new-niches-pinker-pages-no-more-subscri/
    More blogs coming from FT this year.

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