Agora’s ‘Gazeta Wyborcza’ newspaper copy sales fell in June, with average daily copy sales dropping by 9.2%, compared with the same month in the previous year. Other national newspapers also reported weaker copy sales in June, with ‘SuperExpress’ tabloid down 4.6%, ‘Fakt’ tabloid down by 6.1% and ‘Rzeczpospolita’ broadsheet down by 5.5%. However, national newspaper circulation increased by 8.5% following the launch of ‘Dziennik’, whose copy sales were 215 000 copies, lower by 17% compared with the previous month.
Our view: In May ‘Gazeta’ copy sales came weaker by only 5% compared with May, despite heavy promotional support, editorial changes and deep discount in subscription, while its main rival ‘Dziennik’ copy sales dropped even more sharply, most likely on fading out of the novelty effect on the newspaper launched on April 18th. We view the data as more disappointing for Axel Springer than Agora, but still we expect a negative market reaction on the stock today. We expect newspaper circulation dropping for two more consecutive months, as we are approaching publication dates for copy sales statistics for summer months.