Newspapers From Around the World

Newspapers globally are gradually shifting towards digital content amidst the waning print business. Over the past two decades, newspaper companies have faced significant challenges, with many experiencing their stock prices reaching their zenith in the late 90s and early 2000s, coinciding with the decline of print media. However, digitalization presents a promising avenue for newspapers to escape this decline. It holds the potential to not only reverse the downward trajectory but also trigger a reevaluation of stock prices, driven by anticipated growth and enhanced profitability in the market’s eyes. 

Consider the case of The New York Times (NYT), a prime example of successful transition to digital platforms. This evolution has not only bolstered its share price, which stood at $5 in 2009 and now hovers around $43, but also transformed its revenue dynamics. Presently, 63% of its advertising revenue stems from digital ads, and out of its 10.36 million subscribers, a staggering 9.7 million are digital-only subscribers. Leveraging the global reach of the internet, the company has amassed its largest subscriber base in history.

While digital revenue hasn’t yet matched the heyday of print, the company’s share price remains around its early 2000s peak. However, with digital revenue poised for continued growth, The New York Times has staged a remarkable resurgence. This narrative isn’t unique to The Times; several newspapers worldwide could replicate this success.

I’ve assembled a list of such newspapers that are still in the beginning stages of their digital journey, offering potential investment opportunities at lower valuations compared to The New York Times, which currently trades at over three times EV/Sales, contrasting with others mostly below two times EV/Sales, and even below one times.

In the digital age, newspapers are poised for significant growth. With a vast audience online, newspapers have the potential to greatly expand their reach. They also stand to benefit directly from the increasing investment in digital advertising.

However, perhaps the most crucial role newspapers can play is in upholding the integrity of information dissemination. In an online landscape fraught with misinformation, newspapers could remain a beacon of truth. As AI technology advances, the threat of fabricated content proliferating is imminent, potentially exacerbating the misinformation epidemic. This, I speculate, could prompt a resurgence in reliance on trusted journalistic sources for information in the future.

I first heard about this investment idea from Kuppy, a famous investment manager, during a podcast a few years ago. However, I’ve only recently decided to take action and buy two stocks from the list below. This article is mainly a summary of various newspaper stocks that are publicly available and caught my attention, along with the two I invested in and why I chose them. So without further ado I will start below.