Newsagencies in NSW and VIC have changed dramatically over the past decade. Print media revenue has declined, but the businesses that have adapted — building lottery commissions, stationery, gifts, and services revenue — are still viable and still sell. The multiple range is 1.0× to 2.0× SDE, and the buyer pool is narrower than it was ten years ago.
What the market is paying
| Business type | Typical multiple | Key driver |
|---|---|---|
| Print-heavy, declining revenue, no lottery terminal | 0.5–1.0× SDE | Structural decline — limited buyer interest |
| Lottery terminal, stationery, some gifts, stable revenue | 1.0–1.5× SDE | Lottery commissions provide recurring income |
| Strong lottery + gifts + services, good location, long lease | 1.5–2.0× SDE | Diversified revenue + location premium |
Lottery commissions: the anchor of value
The lottery terminal is the most important asset in a modern newsagency. Lotteries NSW and Tatts commissions provide recurring, predictable income that does not depend on foot traffic trends or consumer spending patterns. Buyers will look at the lottery commission income as a percentage of total revenue — and the higher that percentage, the more stable the earnings base.
The lottery terminal licence is transferable, but the process requires approval from the lottery operator. This needs to be factored into the settlement timeline — allow at least 60 to 90 days for the transfer to be approved.
The print media decline
Newspaper and magazine sales have declined significantly and will continue to do so. Buyers are not paying for print revenue — they are paying for lottery commissions, stationery, gifts, and any other revenue streams that are not structurally declining. Sellers who present their business primarily on the basis of total turnover (including print) will find buyers quickly adjusting their offer to reflect the quality of the revenue mix.
Location and lease
Location is critical for newsagencies. A long-term lease in a shopping centre, a transport hub, or a high-foot-traffic main street is a genuine asset. The rent-to-revenue ratio matters — newsagency margins are thin, and high occupancy costs will kill the profitability of an otherwise viable business.
The buyer pool
The buyer pool for newsagencies has narrowed. Most buyers are existing newsagency operators looking to acquire a second location, or individuals seeking a lifestyle business with stable income. The marketing process needs to reach this specific pool — and the information memorandum needs to clearly present the lottery commission income, the lease terms, and the revenue mix.
