Financial Times may scrap its print edition in certain countries as the number of readers continues to drop.
The City broadsheet announced that it is considering whether or not to continue its print edition at various locations in the face of a “volatile” and “fragile” market.
The company said that a thorough review was conducted in 2022. It took into consideration factors like the reduction in circulation, and its impact on subscribers, and advertising.
The paper’s bosses said that a five-year strategy plan was in place. However, print site contracts would be renewed annually.
The review coincides with a continuing decline in print distribution as more readers are moving online.
According to the Audit Bureau of Circulations, The FT’s UK print readership fell 16pc to 135,000 last year. Newsstand sales were less than 5,000 during weekdays in October.
Digital subscriptions, however, grew 13pc, surpassing 1m for first time. This was largely due to the strong growth of corporate subscriptions. Digital content revenues increased by £26m, to £193m.
The newspaper stated: “The FT.com platform continues to be a strong business model due to the paid-for subscriber level, while advertising revenue remains strong.”
The FT is owned by the Japanese media giant Nikkei, and it employs 2700 people in total. It records most of its expenses in the UK, but generates a significant portion of its revenue abroad.
Under Editor Roula Khalaf the paper cemented its reputation for a publication that has a globalist perspective, and attracted criticism by some in the City because of its anti-Brexit position.
The FT Group’s revenues increased by 5pc, to £458m last year, but operating profits dropped 7pc, to £29m.
The “pink’un” newspaper, also known as “The Pink Un”, attributed this to a cost-of-living bonus of £1,800 that was paid to all employees last year. Total staff costs in the UK rose from £151m to £19m, as the company hired more than 100 new employees.
The FT, like many media organizations that compete with it, has sought new revenue sources to offset the declining readership and a difficult advertising market.
The newspaper has heavily invested in podcasts, such as the daily News Briefing or the recently launched investigative series Hot Money.
Last year, the FT saw a 30pc increase in its revenue from its Live division. This was boosted by events like the Business of Football Summit or the FT Weekend Festival.
The newspaper’s domestic market saw a profit of £6.8m in comparison to a loss last year of £3.2m.