Borrell Associates and BIA Financial Network released results of a study on valuations of media websites, revenue, margin, and annual growth. Since newspaper related sites in most markets are the most established, as a segment of the media sites surveyed they posted the highest valuations but are also on the decline as a faltering economy and reliance on traditional web ads is starting to catch up with them:
Media Annual Revenue Cash Flow Margin Annual Growth Outlook
Newspaper $715,000.00 37.1% 33.5% Decline
Local TV $450,000.00 22% * 70% Increase
Local Radio $165,000.00 15.2% * 67% Increase
Pure-Play $300,000.00 16.7% * 40% Increase
*As revenue increases in the coming years, margins expected to hit low 40's%
Where is your potential for growth?
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