KOCHI: The Malayala Manorama Company Pvt Ltd is grappling with a persistent decline in circulation across its key print titles even as its bottom line (profitability) shows signs of recovery on the back of easing newsprint costs.
The company’s print circulation has been on a consistent downward trajectory, mirroring broader shifts in media consumption.
From over 21 lakh copies a day in FY19, the average the Malayala Manorama publications circulation fell to 17.89 lakh in FY24 and further to 16.90 lakh by September 2024.
This represents a nearly 20 percent drop over five years. Given that a significant portion of Malayala Manorama’s revenue stems from advertising and circulation, CARE Ratings has cautioned that a continued decline in circulation could gradually weigh down the company’s overall revenue performance.
Standalone profit improves
The document shows that the company’s standalone net profit rose steadily from Rs15.18 crore in FY23 to Rs19.38 crore in FY24, with a sharp uptick to Rs34.38 crore in the first half of FY25. The surge is attributed to softening raw material prices, primarily imported newsprint, which had earlier eroded margins during FY22 and FY23.
On a consolidated basis, however, the profit trajectory paints a less optimistic picture. The group’s profit after tax (PAT) or net profit has steadily declined – from Rs39.43 crore in FY22 to Rs8.11 crore in FY23, and further to Rs5.91 crore in FY24 – indicating weaker performance from subsidiary businesses, including digital and international operations.
What raises a red flag is the sustained drop in circulation figures, with both the flagship Malayalam daily Malayala Manorama and the English weekly The Week witnessing year-on-year declines, though separate numbers are not available.
This trend reflects broader structural shifts in consumer behaviour, as more readers pivot to digital platforms for news consumption. The report also points to intensifying competition in the vernacular segment, squeezing market share in Manorama’s traditional stronghold.
Newsprint cost is saviour
While the moderation in global newsprint prices has offered temporary relief, the company’s long-term prospects hinge on its ability to reinvent content distribution models and capture digital monetisation opportunities.
In the near term, ad revenue recovery – particularly in the print segment – remains sluggish, even as the company continues to enjoy strong brand equity and a wide distribution network in Kerala and among the diaspora.
The rating agency notes that despite these challenges, Malayala Manorama maintains a healthy financial profile with a conservative capital structure, minimal debt, and strong liquidity.
Still, with circulation on a steady downward path, the resilience of its traditional print business is being tested – and how effectively the group pivots in a rapidly digitising media landscape will shape its future performance.
