Travel News: Daily Telegraph Travel
Telegraph Media Group Ltd.’s travel commerce revenue increased by 59% from 2016 to 2017 and rose by 70% from 2017 to 2018. The Daily Telegraph claims that its habit of developing a substantial amount of content for travel along with its engaged readership puts the company ahead of its competition. The company predicts that e-commerce will outdistance advertising as a portion of its overall revenue in the coming years with travel as its most mature sector of commerce.
DAILY TELEGRAPH TRAVEL
FINANCIAL DATA POINTS
- Due to the structural changes that took place within the industry and the ever-changing consumer habits, Telegraph Media Group Ltd's revenues reduced to £285.7 million in 2017 from £303.2 million in 2016.
- According to the company's financial results for 2017 and highlights of 2018, digital subscription revenue has increased by 30% year-over-year and an increase of the travel commerce revenue by 59% on an LFL basis. Over the period 2017-2018, the company experienced an increase in the travel commerce revenue by 70%.
- The company recorded its EBITDA value to be £30.3 million in 2017 with a profit before tax amounting to £13.7 million.
- According to The Drum, Telegraph Travel is currently the "10th largest travel website in the world". The company has invested £10 million in technology and data, new commerce, and brand marketing revenue paths for the long-term.
- The company’s overall profits before tax decreased from £27.1 million in 2016 to £13.7 million in 2017.
- Telegraph Media Group utilizes Adobe Experience Cloud solutions, Adobe Analytics, Adobe Campaign, and Adobe Audience Manager to better connect with millions of its individual readers. By utilizing these solutions, the company has built cross-channel audience profiles to support various lines of business.
- Telegraph Media Group has directed its digital engagement strategy in encouraging its readers to subscribe and register with one of the company's many e-commerce businesses.
- The Telegraph displays banner ads for travel products to its registered readers who are categorized as travelers.
- It was found that Telegraph Media Group uses its segmented audience such as travelers to promote its own travel offers and also develops attractive packages for advertisers.
- Daily Telegraph Travel has a 50-person travel team which provides reader offers, affiliate booking links, advertising, and content.
- Telegraph Travel encourages its readers to join tours such as the trip to Russia by "the company of BBC World Affairs editor and Telegraph columnist John Simpson" in 2018.
- The Telegraph claims that its practice of developing a substantial amount of content on travel along with its engaged readership places the company ahead of its competition.
- Daily Telegraph Travel was found to be working with several operators and takes a portion of the overall transaction.
FUTURE-LOOKING STATEMENTS ABOUT THE 'TRAVEL FOR NEWS PUBLISHERS' BUSINESS
- With the company experiencing high growth of over 50% in 2017, Daily Telegraph Travel believes that travel provides a good opportunity for the company's future.
- The company predicts that e-commerce will outdistance advertising as a portion of its overall revenue in the coming years with travel as its most mature sector of commerce.
- According to a report published by Awin, data shows a significant underlying demand with a positive picture for travel publishers. It was also found that new travel publishers might come across hurdles and struggle to monetize their travel content.
- According to Awin, new and smaller publishers find it particularly difficult to support their companies under the weight of the financial pressure. Thus, the number of travel publishers that join the vertical is observed to decline in year-over-year along with the engagement of existing affiliates.
We began our search by looking for any financial information and growth factors for Daily Telegraph Travel through the company website, financial statements, and other press releases. The company’s financial statement for the year 2017 provides information on the company’s overall revenue and the growth rate for its travel business segment. However, the financial statement does not provide any breakdown of their financials to calculate the revenue of its travel business segment and provides limited information on the company’s growth factors.
We then expanded our search to include relevant case studies on the Daily Telegraph Travel that could provide information on the company’s financials and growth factors. The idea here was to find any information on how the company has grown in recent years and factors that have driven this growth. We came across a case study published by Adobe which provides data on how the company displays travel ads to its readers. Further, we came across another case study published by Caci that provides information on how the company promotes its travel service offers to readers along with advertising packages to marketers.
Next, we searched through various industry publications and media articles that could provide data on the company’s revenue that is specific to its travel business along with growth factors and future-looking statements. The idea here was to find published industry analysis, commentary on the company, and overall 'travel for news publishers' business. During our search, we came across an article published by the World Association of Newspapers and News Publishers which provides information on the company’s offerings in the 'travel for news publishers' business.
Further, we came across an article published by The Drum which includes statements by Nick Hugh, CEO of Telegraph Media Group, providing details on the company’s growth rate in the 'travel for news publishers' business sector. However, no information was found on the company's revenue for the 'travel for news publishers' business in terms of absolute value or percentage share of the overall revenue. Industry articles from websites such as Digiday and Awin provided an overview of certain growth factors for Daily Telegraph Travel and future-looking statements about the 'travel for news publishers' business.
We then expanded our search to include external databases for any financial information in terms of revenue of the Daily Telegraph Travel. However, most of the databases such as Pitchbook and Hoover’s only provided the overall revenue for the parent company i.e. Telegraph Media Group and did not provide any breakdown for its 'travel for news publishers' business. Additionally, we also searched through government databases such as Companies House but found no information on the company’s 'travel for news publishers' business revenue.
Therefore, after an exhaustive search through all these channels, we were able to provide some financial information on Daily Telegraph Travel’s 'travel for news publishers' business along with its growth factors and future-looking statements. However, exact revenue information for Daily Telegraph Travel’s 'travel for news publishers' business could not be found nor could be triangulated.
One of the probable reasons for the unavailability of such information could be because the company is privately held, it does not publicly disclose revenue information specific to its business segments. It could also be possible that since the company has not disclosed any revenue specific information on its 'travel for news publishers' business, none of the industry publications and databases have calculated such segment revenues.