Loss turned into profit and revenues soared for the digital media company last year, new numbers show.
For eight year, Douglas Roos and his co-founder Patrik Sandberg has run the Nyheter 24 Group, which includes the news site Nyheter 24, e-sport site Fragbite and ad sales company Netric. The start offered some turbulence for the company which was harshly judged by Swedens media elite and the company operate at a loss for years.
However, it seems at though the tide has turned and sales virtually exploded during 2015. The company can now report substantial profits for the first time.
“We are extremely happy but the majority of the praise should be directed at the employees and our CEO, Daniel Weilar. Revenues increased from $11.4 million (97 million SEK) to $24.7 million (210 million SEK), and operating profits(EBITDA) reached almost $1 million (8 million SEK)”, Douglas Roos says, and adds that profits landed at $600,000.
“Our bottom line would be even better if we maximized profits. Profits are important of course, but we are still developing new possible revenue streams”, Douglas Roos says.
One such revenue stream will come from the company’s own e-commerce site in the future. The Nyheter 24 Group is working intensely to develop a commercially viable product.
“We really believe in this, and we’re going to launch our own e-commerce brand before summer. What we are going to sell is still a secret but the target audience is women in the age group 15 to 30 years old”, Douglas Roos says.
The idea is to use the company’s different sites as marketing platforms for the new e-commerce venture. The company has a total of 3.5 million weekly visitors, 1.9 million of which comes from the news site Nyheter 24.
“We are going to push hard in every possible channel. We truly believe in this of course but I wouldn’t dare guess the commercial potential of it”, Douglas Roos says.
On the other hand, he is sure that revenues can increase with another $10-12 million in 2016 reaching $35 million. Douglas Roos also reveals that another revenue streams is being developed.
“We have ongoing discussions with several e-commerce companies where we send traffic to them through our web sites. Like an affiliate model of sorts”, he says.
Douglas Roos initiated negotiations with both investors and other media companies about selling parts of Nyheter 24. So far, negotiations has yet to lead to an actual deal, but Douglas Roos is still keeping doors open.
“We feel very strong on our own but we’re still interested in making structural deals.”