Hearst UK’s post-Covid financial outlook has been shared in the 2019 full-year accounts for National Magazine Company, the magazine punisher’s parent company.
Despite revealing increased productivity pre-Covid, Hearst’s pre-tax losses in 2019 came to £2m and the company reported a 3.6% revenue drop from £146m to 140.6m.
The publisher said it predicts this decrease in revenue will result in operational losses, but does not expect the need for additional funding.
Due to social distancing measures, Hearst has been unable to host major events – a major part of its brand diversification strategy – and has moved to an increased digital presence.
James Wildman, Hearst UK’s chief executive, said: “Fluctuations in demand and increased online competition for advertising revenue could have a marked impact on profitability.
“However, the positioning of our magazine brands and our mixed portfolio of magazines and diversification into digital publishing, events and other revenues helps to manage the exposure to this risk.”