Printing and manufacturing group Novus says its decision to purchase Media24’s newspaper titles and other assets was based on its belief that it is not curtains for the print industry, despite sustained decline in print circulation in the country.
“Our decision to acquire a number of businesses from Media24 was viewed with scepticism by some stakeholders, especially since the prevailing narrative is that print is dead,” CEO André van der Veen said in a letter to shareholders, published in the group’s annual report.
“We agree that the changes in the print market are structural and that the print industry is continuing to decline, but it may not be terminal,” he said.
“We have seen printed book volumes increase and, in education, there is increasing support for paper books as the most effective learning material.”
The Competition Commission last year approved Novus’ bid to acquire Media24’s media logistics and community newspaper portfolio.
This after Media24 announced last year that it was seeking to close the print editions of five newspapers, transitioning three of them into digital-only brands — in a move that put 400 jobs on the line.
The Naspers-owned media group sold its media logistics business, On the Dot, and its community newspaper portfolio to Novus.
The Cape Town-based Novus is active in the provision of printing services to customers across multiple sectors, including education, retail, government and media. The company, which started as a family owned business more than a century ago, is also active in the publishing and sale of educational materials.
Novus Print operates two production facilities in Cape Town, one in Gqeberha, and one in Gauteng.
After the Media24 deal, Novus Media has a national network of 20 local newspapers and two sport publications.
The deal also involved On the Dot, a leading logistics and distribution provider throughout SA with one warehouse in Cape Town and one in Joburg.
“National advertisers continue to adjust their spending away from print, as digital marketing dominates, but there is still sufficient advertising income in the community paper segment to support our investment case.
“That said, we are expanding the digital presence of the community newspapers and expect to be able to offer a very attractive digital package in future. The division also includes a sport segment where we now own Soccer Laduma and Kick-off.”
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