A new survey of financial executives pulls back the curtain on just how profitable digital revenue is for local media companies. Conducted by Borrell Associates and Media Financial Management Association (MFM), the survey found that the average EBITDA margin was 32.8% and the average gross margin 41.5%. It also found that, while executives expressed high confidence in the calculations, some expenses associated with digital operations were excluded.
“This helps pull back the curtain on digital profitability," said Joe Annotti, CEO of MFM. "It shows that financial managers have their eyes on it and are in fact tracking margins for overall digital sales revenue, as well as a great number of individual digital products."
The survey was conducted in late October to early November and encompassed executives at 58 local media companies. It asked questions about margins, the perceived accuracy of the calculations, and how valuable the information is to media operations. Among the findings:
“There’s been a lot of skepticism about the profitability of digital operations at traditional media companies,” said Gordon Borrell, CEO of Borrell Associates. “It’s great to see CFOs are providing insights on the digital profit factor so the industry can gauge a true bottom-line value.”
Findings were published in a 10-page report, “How Profitable Is Digital Revenue,” and made available to MFM members and Borrell clients. A free, open-to-the-public webinar will be held at 11 am Eastern on Tuesday, Nov. 28. Guests include Annotti, Borrell, and Hubbard Radio CFO Dave Bestler. To register, go to https://bit.ly/HowProfitable
NOTE TO MEDIA: You may request a copy of the full report, but because of the proprietary nature of the report we ask that you publish no more than one chart or table. To request a copy of the report, or for interviews or additional questions, contact Joe Annotti at firstname.lastname@example.org or Gordon Borrell at email@example.com.
Posted at MediaVillage through the Thought Leadership self-publishing platform.
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