Mediahuis profits fall by 44%

Belgium-based group which owns the 'Irish Independent' attributed its falling profits to inflation and the high cost of paper

Mediahuis completed the purchase of Independent News and Media in 2019. 

Profits at Mediahuis were cut nearly in half last year down to €65.3m as operations were hit by inflation and the high cost of paper.

In 2022, Mediahuis — whose portfolio in Ireland includes the Irish Independent, Sunday Independent, and the Sunday World — posted a turnover of €1.2bn in 2022, up from €1.13bn recorded in 2021.

Group turnover was boosted by the company’s acquisition of the German media group Aachener Verlagsgesellschaft, making the group the main shareholder of Medienhaus Aachen with a 70%, stake.

It also acquired Carzone and Switcher here in Ireland.

However, the Belgium-based company’s net profits slipped back from €117.3m in 2021 to €65.3m last year. The company’s operating profit held up better, dropping to €155.7m from €166.1m.

Mediahuis group CEO Gert Ysebaert: '[T]he media world is transforming at an unprecedented speed, driven by technological innovations such as artificial intelligence, as well as changing consumer behaviour.' File picture: Mediahuis

In a statement, Mediahuis said operating results were also influenced by a “strong headwind from the historically high paper price and high inflation”.

“Paper costs alone increased by more than €30m as a result, and the impact of rising costs was felt in several business areas.” 

Gert Ysebaert, CEO of Mediahuis group, said the company showed it is “resilient” during a year of energy crisis, inflation and war.

“The digital transition continues, although at a slower pace than in the Covid years. Our strong journalism and digital news experience are making a difference every day and enabling us to absorb the structural decline in print.

“A large group of readers remain loyal to the printed newspaper. However, ensuring continuity of delivery is becoming increasingly challenging. 

"Moreover, the media world is transforming at an unprecedented speed, driven by technological innovations such as artificial intelligence, as well as changing consumer behaviour. 

All this means that, more than ever, we need to anticipate an even more radical digital shift.” 

Mediahuis said that turnover from newspaper sales “remained stable”, dropping 11% compared to 2021 and with its total number of subscribers now reaching 1.8m, growing by 13%.