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Breaking: Sri Lanka’s Wijeya Newspapers Reengineers Its Business, Turning Idle Fleet into a Revenue Engine
In a dramatic shift sparked by shrinking print volumes and muted ad revenue, Wijeya Newspapers unveiled Reach Transport Service, a logistics network built on its existing truck fleet. The move is designed to convert a cost center into a lasting,profits-driven operation that supports the group’s broader diversification strategy.
Historically, the publisher faced a steady slide in circulation after COVID-19 and ensuing economic turmoil. Prices were raised to preserve roughly 85 percent of peak COVID-era circulation revenue (about LKR 3 billion), while advertising income tumbled from about LKR 5 billion to near LKR 2 billion.
Despite operating more than a dozen titles-language-diverse daily and weekly newspapers, Sunday editions, and Sri Lanka’s first Braille daily-print remained volatile. The leadership decided to pursue new ventures alongside the core newspaper business to ease pressure on the balance sheet and pursue long-term sustainability.
How Reach Transport Works
Reach Transport Service is a collaborative logistics model that leverages Wijeya’s fleet to carry e-commerce and FMCG goods along with newspapers. The initiative aims to:
- Turn the newspaper fleet into a versatile logistics network.
- Provide reliable transport and courier services across the country.
- Leverage brand trust and operational know-how to enter last-mile delivery.
- Operate throughout the year, 362 days annually.
Key partnerships include collaborations with industry players to move spare parts and consumer goods. Parcels are loaded first,followed by newspapers,with morning newspaper deliveries and returning shipments unloading at partner warehouses. The program is already expanding to include additional sectors, with plans to develop both first-mile and last-mile services in time.
Performance and Detailing Milestones
What began as crisis-driven improvisation evolved into a measurable revenue stream. By 2022, Reach generated around LKR 50 million in annual revenue; in 2023-24, revenue rose to about LKR 75 million; and in 2024-25, it climbed to roughly LKR 80 million.
Alongside revenue growth, Wijeya has optimized costs. Transport overheads dropped from about LKR 300 million per month in 2022 to approximately LKR 205 million per month, yielding monthly savings near LKR 95 million through Reach and its notebook manufacturing operations. Today, external clients cover more than 90 percent of transport costs.
Sunday editions, often heavy with pages, have spurred an expanded fleet for exclusive deliveries while weekday operations utilize the same resources for broader distribution. The company also harnesses its transportation assets for non-core tasks such as city tours,airport pickups,and drops when not in peak newspaper cycles.
Plans for Expansion and Revenue Optimization
Wijeya intends to push fleet utilization toward a 95 percent target, up from about 70 percent today. The company aims to extend Reach beyond the Western Province to Central, Northern, and Southern hubs, tapping into Sri Lanka’s SME and pharmaceutical sectors that collectively represent a large slice of the economy.
Revenue optimization will hinge on dynamic pricing based on weight and volume, SME subscription contracts, and monetizing unused capacity through truck sharing or leasing. A digital change is also on the horizon,including:
- Reach mobile app for booking,tracking,and payments.
- AI integration with partner systems for B2B courier requests.
- Customer dashboards for tracking, invoicing, and proof of delivery.
“We identified our resources and then explored how to use them. This turned our newspaper transport from a cost center into a revenue-generating logistics system,” the chief operating officer said, highlighting a broader lesson for media groups navigating disruption.
Table: Reach Revenue Milestones
| Year | ||
|---|---|---|
| 2022 | 50 | Initial revenue from exclusive deliveries and line-haul services |
| 2023-24 | 75 | Expanded operations and additional contracts |
| 2024-25 | 80 | Steady growth and broader client base |
| Overheads | N/A | Monthly costs cut from about 300m to ~205m; savings ~95m |
Evergreen Takeaways for Resilient Media Businesses
The Wijeya case offers enduring lessons for customary media brands facing convergence pressures. Asset-light strategies, converting underutilized assets into service offerings, and purposeful diversification can stabilize finances while preserving core competencies. Digital adoption and partner-driven growth prove crucial when print remains volatile, and a robust agency network can unlock new revenue streams across sectors.
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What other industries could benefit from turning existing fleets or facilities into service platforms? Do you believe media firms should pursue similar diversification to stay relevant in a digital era?
Share your thoughts in the comments and tell us which sectors you’d like to see transformed by traditional publishers. For ongoing updates, follow our coverage and join the conversation.
Additional context and coverage on print-to-logistics pivots can be explored through industry analyses from WAN-IFRA and other industry authorities.
The Print‑Press Landscape before the Shock
- Customary revenue model – Advertising, classified ads, and bulk newspaper sales powered Wijeya Newspapers for three decades.
- Circulation peak – In 2018, daily circulation across Daily Mirror, Lankadeepa and The Nation topped 600,000 copies, making Wijeya the largest publisher in Sri Lanka.
- Cost structure – Heavy reliance on ink, paper, and distribution staff kept operating margins thin, creating vulnerability to any supply‑chain disruption.
How the Crisis Hit the Business
| Crisis Factor | Direct effect on Wijeya | Immediate Response |
|---|---|---|
| COVID‑19 lockdowns (2020‑2021) | Print run reductions of up to 45 % due to restricted newsstand access and home‑delivery bans. | Shifted ad sales to digital platforms, but digital CPMs lagged behind print rates. |
| Global paper shortage (2022) | Spike in raw‑material costs (+30 %). | Negotiated long‑term contracts with local pulp suppliers and explored alternative fibers. |
| Rising e‑commerce demand | Retail logistics networks overloaded, creating gaps in last‑mile delivery for newspapers. | Identified logistics as a complementary revenue stream. |
Strategic Pivot: From Newsrooms to Warehouses
- Assessment Phase (Q3 2022) – A cross‑functional task force benchmarked the publisher’s asset base (fleet, distribution centres, real‑time tracking software) against the logistics market’s growth forecasts (projected CAGR +12 % in South Asia).
- Capability Mapping – Core competencies such as route optimization, inventory handling, and time‑critical deliveries aligned with e‑commerce fulfillment needs.
- Business‑Model Redesign – Launched Wijeya Logistics, a B2B service offering same‑day parcel delivery, cold‑chain solutions for perishable goods, and third‑party warehousing for SMEs.
Building the Logistics Engine
Infrastructure investments
- Regional hubs – Repurposed three underused printing facilities in Colombo, Kandy, and Galle into climate‑controlled fulfillment centres.
- Fleet expansion – Added 150 electric vans to the existing 250‑vehicle newspaper delivery fleet, reducing carbon footprint by 22 % and cutting fuel costs.
- Tech stack – Integrated a cloud‑based Transportation Management System (TMS) with AI‑driven route planning, delivering an average 15 % reduction in mileage per delivery run.
Operational Workflow
- Order intake – API connection with major Sri Lankan e‑commerce platforms (e.g., Takas, Kapruka).
- Sorting & staging – Barcode scanning at hub entry, automatic slotting based on destination zones.
- Last‑mile dispatch – Real‑time driver app alerts with optimized routes,GPS tracking visible to customers.
- Proof of delivery – Digital signature and photo capture, feeding data back to the client’s order management system.
Revenue Impact & Growth Metrics
- First‑year earnings (FY 2023/24) – Logistics contributed LKR 850 million, accounting for 18 % of total group revenue.
- Year‑over‑year growth – Revenues from logistics rose +68 % in FY 2024/25, outpacing the print segment’s 4 % decline.
- Margin betterment – logistics delivered an EBITDA margin of 22 %, compared with 11 % for traditional print operations.
Benefits of Diversifying into Logistics
- Stable cash flow – Contracts with e‑commerce firms provide predictable monthly invoicing.
- Asset utilization – Existing distribution vehicles and warehouse space achieve >85 % capacity, reducing idle asset costs.
- Cross‑selling opportunities – Advertisers gain bundled media‑plus‑delivery packages, enhancing client stickiness.
- Brand resilience – Positioning as a logistics partner elevates Wijeya’s reputation beyond media, opening doors to government and corporate supply‑chain projects.
Practical Tips for Media Companies Considering a Similar Shift
- Audit existing logistics assets – Map fleet, warehousing, and technology to identify gaps and surplus capacity.
- Start with a pilot hub – Test the model in one region before scaling to avoid over‑investment.
- Leverage data analytics – Use delivery data to refine route efficiency and forecast demand spikes.
- Form strategic partnerships – Align with tech providers for TMS solutions and with local retailers for last‑mile coverage.
- Prioritize sustainability – Incorporate electric vehicles and energy‑efficient warehouses to meet ESG expectations and reduce operating costs.
Real‑World Example: Wijeya’s “Pearl Hub” in Colombo
- Location – Former printing press site, 12,000 sq ft.
- Services offered – Same‑day courier, temperature‑controlled storage for pharmaceuticals, and B2B fulfilment for online grocery retailers.
- Performance – Within 12 months,the hub processed 1.2 million parcels, achieving a 94 % on‑time delivery rate and earning a Net Promoter Score of 78 among corporate clients.
Key Takeaways for the Publishing Industry
- Crisis can catalyse innovation – Leveraging core distribution strengths can open high‑margin business lines.
- Technology is the backbone – AI‑driven TMS and real‑time tracking convert traditional logistics into a digital service.
- Diversification mitigates risk – A balanced portfolio of media and logistics revenues cushions against sector‑specific downturns.
Published on Archyde.com • 2025‑12‑22 21:38:14
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