Why The Economist is a role model

The Economist is a different kind of weekly magazine. Not just because its own editors insist on calling it a “newspaper” but because it really does justify the descriptor “legendary”. Its status is born of the seemingly effortless evolution of a news brand which – for most of its 182 years – has been as much about politics, technology, business and culture as the economics it was launched to address.

The Economist is admired by many more people, princes and presidents around the world than have ever read a whole issue. Its reputation has been burnished by a liberal-ish, often contrarian viewpoint – and the critical and sarcastic tone of the (never by-lined) content. Then, there’s the distinctive use of smart puns in headlines and on incisive, eye-catching covers that, for example, greeted a return of Berlusconi with “Mama Mia, here we go again” and urged America to “Trump Donald”. It was once criticised for “peddling conventional wisdom to US professionals so impressed by its British accent and Oxbridge-style swagger”. But, in its third century, The Economist can fairly claim to be a publication of the world. It now gets twice as much revenue from North America as from either the UK or EU.

The legend has been cemented by its unchanging, trademark white-on-red logo and decades of smart advertising urging would-be readers to “Lose the ability to slip out of meetings unnoticed”- and (you might think) by its insufferable self-confidence.

Much more than that, however, is the fact – wouldn’t you know it? – that The Economist is successfully navigating the digital rapids that have wrecked so much traditional media. Despite some previously bumpy times and erratic M&A, the publisher (which once generated 66% of its revenue from advertising) has survived the onslaught of digital platforms to become a multi-media brand and a highly successful global business – now with 66% from subscriptions.

Its financial results for the 12 months ended March 2025 are emphatic.

The Economist Group this week reported £368.5mn revenue and £48.1mn operating profit in 2024-5, both up 2%. At constant currencies, the profit would have been 11% higher. Subscription volumes were up 3% to 1.25mn, with digital subs up by 8% – and accounting for 85% of new subs in the year.

In so many ways, the current frenzy of international politics and economics plays more to the fiercely independent global journalism of The Economist even than to the quality newspapers, many of which are enjoying strong digital subscriptions growth. The Economist’s financials, arguably, also reflect a more durable multi-media business model than the daily news brands which have been grabbing short-term “licensing” payments, first from Meta and Google and, now, from AI. And you won’t find The Economist on cut-price, ‘all-you-can-read’ digital platforms.

Ten years after the appointment of Zanny Minton Beddoes (as only The Economist’s 17th editor-in-chief) and six years since Lara Boro became CEO, the group has become a role model for legacy media everywhere, illustrated by its development, under four headings:

Strategy: Beyond the digital, multi-channel diversification which has delivered 1.25mn subscribers, 68m social media followers, 270mn app visitors and 3.5mn YouTube subscribers, The Economist Group generates 39% of its revenue (and, maybe, 50% of its profit) from B2B information and events. In a revamped management structure, Boro (ex Informa and FT) has brought together the B2B activity (30% of which is the 80-year-old Economist Intelligence Unit) under president Leon Saunders Calvert (ex Thomson Reuters/ Refinitiv). This creates obvious scope for organic growth and acquisitions in data, research, advisory, training and events for what is already one of the largest UK-based B2B companies. Its 2,000-member Economist Intelligence Corporate Network (operating in cities across Africa, Asia and the Middle East) has great prospects at a time when such executive expertise-sharing is hot. The fledgling Economist Education courses (2,000 students so far from 100 countries) is accounted as part of The Economist magazine business, under new president Luke Bradley-Jones (ex Disney/ Sky TV). But online executive education also represents an increasingly powerful B2B activity.

Innovation: The Economist’s status owes much to its unchanging approach to journalism. But its 21st century success increasingly depends on a determination to have a matching authority across digital text, audio, video and live events. It produces two daily and five weekly podcast shows (100mn annual downloads), three daily and 17 weekly newsletters. Subscribers get exclusive Economist Podcasts+ and events hosted by journalists. Its video strategy began three years ago on TikTok, since when it has produced more than 250 short videos with five new ones weekly. The video output has now been viewed for 9mn minutes by subscribers. Last year, it established a video carousel on the app and website, where subscribers can access the latest content. The way in which The Economist is prepared, if necessary, to break with long-held tradition can, perhaps, be guaged by the revamped podcast version of its fusty Bartleby management column as “Boss Class”, recognising the power of personality with new audiences. The fully-staffed “new media” operations and state-of-the-art studios underline the extent to which the multi-channel output is core business, not a mere ancillary to the mighty magazine brand. The introduction of Student Espresso, providing free access to high school and university students worldwide (including in AI-powered languages) is a fascinating investment in The Economist’s future.

Accountability: For a private company controlled by two of Europe’s biggest business families, the Agnellis and Rothschilds (albeit with the safeguards of long-established employee trusts), The Economist Group might just be a model of accountability. In the past five years, it has reduced annual greenhouse-gas emmissions by 34% (despite the growth in the whole business), some 40% of its 25% best-paid people (and 52% overall) are women, and 48% of all employees are black, Asian or diverse enthnicity. In a broader sense, The Economist Group’s level of accountability to shareholders, employees and others might be measured by the detail and explanation in its 150-page annual report (produced just 10 weeks after the financial year-end). It’s a level of accountability and transparency that would embarrass many listed companies with more shareholders to inform and persuade.

Financials: The Economist group’s expansive investment in multi-media activity has been achieved with revenue which has increased by 21% and operating profit by 14% in the last five years – and dramatic growth in digital subscriptions. The legendary brand knows its value and has, for example, increased the US digital subs price by 70% to $229 in the past six years. The UK cover price of the 80-page print magazine has doubled to £10. The group’s 13% operating margin (high by the standards of many news brands) is marked by the fact that cashflow represents 78% of the profit. The net cash has more than doubled in the last three years and the company is now debt-free. But, if you had thought that the steady, unchanging ownership of The Economist – with its high-flying global mission and a tradition of investing in high-quality systems and people – was an easy ride for its executives, you should know that the annual dividend to its high-priced shareholders has often been 70% of net profit and is more than 90% this year, boosted by divestment proceeds.

It’s a journey, of course. But The Economist Group is one high-performing media business which is shifting successfully from print to all things digital, energetically cultivating a new generation of supporters, and creating fresh opportunities for growth in a challenging world. A real role model.