Are Newsagencies Still a Good Business?

For decades, the humble newsagency has been a cornerstone of Australian retail culture. Nestled in suburban strips or anchored in busy shopping centres, these businesses sold everything from newspapers and magazines to greeting cards, stationery, and scratchies. But the landscape has shifted—dramatically.

If you're thinking about buying or selling a newsagency, or simply wondering whether it's a wise investment in 2025, here's the grounded truth: newsagencies are in structural decline. But that doesn't mean they're worthless—far from it. What matters is how they make money today, and how well they’re positioned for what’s left of the category.

⬇️ The Shrinking Footprint of Newsagencies

Let’s call it what it is: newsagencies are disappearing. Not overnight, but consistently, year after year. The big pressures?

Digital disruption – The internet devoured print. Fewer papers, fewer mags, less foot traffic.

Lottery deregulation – More competition from supermarkets and online platforms selling Oz Lotto and Powerball tickets.

Shrinking tobacco sales – Regulation, health awareness, and consumer habits have eaten into another once-reliable margin pillar.

High fixed costs – Most agencies still carry the burden of retail leases, often with declining volumes.

In many towns and shopping centres, what was once a newsagency is now a florist, café, or vacant tenancy.

💵 What Are Newsagencies Worth in 2025?

Valuation is simple in theory: buyers pay based on future profit. But in practice? Emotion, hope, and bad advice can get in the way.

Let’s stay grounded. Based on current Australian market data:

✅ Typical EBITDA multiple range: 1.5x to 2.5x

🎯 Most deals sit between: 1.7x and 2.2x

🦄 Outliers (2.8x–3x) exist, but only when the business ticks every box (see below).

That means if a newsagency generates $150,000 in adjusted EBITDA, you’re usually looking at a sale price of $255,000 to $330,000—including stock and goodwill.

Buyers anchor on payback periods:

At 2x EBITDA, they expect to earn their investment back in 2 years

At 3x, it’s closer to 3.5 years—which means the business needs low risk and high reliability

🎰 The Lotto Factor: Why It Still Matters

Here's the punchline: lottery commissions are the lifeblood of most surviving newsagencies.

Without them, many simply aren't viable.

Why?

Recurring, regulated, and reliable – Unlike newspapers, lotto is still a weekly habit.

Drives foot traffic – Customers come in for Powerball and might leave with cards or stationery.

Strong commissions – While capped, lotto margins are clean, auditable, and relatively high compared to low-margin goods.

🧠 If you're buying a newsagency, ask: How much of the revenue and margin comes from lottery products?

A good benchmark? If lotto commissions aren’t at least 25–30% of total gross margin, the business might struggle unless it has another unique edge (e.g., strong greeting card sales, exclusive agency rights, or parcel pickup contracts).

✅ The Bottom Line

Newsagencies are not growth businesses, and most won't sell for more than 2.5x EBITDA unless they are true standouts. But they can still be profitable, low-risk lifestyle businesses for the right buyer.

What sets the good ones apart?

👉 High lotto sales, low rent, simple staffing, clean financials, and a good local monopoly.