Women’s Weekly publisher Are Media hunting for buyer for magazine portfolio

Womens Weekly publisher Are Media faces an uncertain future.

Media industry experts are warning that Are Media’s stable of magazines faces the prospect of collapse or closure if a buyer cannot be found for the Women’s Weekly and Woman’s Day publisher.

As reported by The Australian, private equity firm Mercury Capital has put Are Media up for sale, casting uncertainty over the future of its high-profile magazine brands.

The magazine business was purchased from German group Bauer by the Clark Perkins-run Mercury Capital in 2020 for less than $50m, a fraction of the $500m that the German company paid for the magazine group for in 2012.

Market analysts question where a buyer would emerge from, with some suggesting that a management buyout led by chief executive Jane Huxley would potentially be the best option.

However, based on the magazine group’s financial track record, closure of the business or a receivership could be the end game, say a number of industry experts, as magazines get disrupted by social media and other forms of online content delivering entertainment news.

According to accounts lodged with ASIC, Are Media posted a $9.8m loss for 2022 after it posted a profit in the previous year.

The operating loss was $4.22m against $337.5m annual revenue.

Most of the expenses related to production and circulation ($99.9m), administration ($51.3m), distribution ($49.3m) and editorial ($49.3m).

The group also booked a $18.9m impairment on goodwill.

Working on the sale plan is KPMG.

Other titles Are Media owns include Elle, Marie Claire, Better Homes and Garden, WHO, House & Garden, and Gourmet Traveller.

The Australian earlier reported that the sale document available to prospective purchasers pointed to strong cash flow and dividends that Mercury Capital has received over the past five years.

Mercury is also claiming it is under no pressure to make a quick sale and will do so only if a compelling offer is made.