REG - Reach PLC - Reach plc - Trading Update

ReachAnnouncement

15/10/2024 07:00

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RNS Number : 1417I  Reach PLC  15 October 2024

15 October 2024

Reach plc ("The Company") Q3 Trading update for the 3-month period to 30
September 2024

Confident in delivering expectations for the full year

 

                               Q3 YOY %(1)  9 Months YOY %(1)

 Digital revenue               2.5          0.0
 Print revenue                 (3.9)        (5.4)
 ·    Circulation revenue      (1.9)        (3.0)
 ·    Advertising revenue      (9.1)        (10.8)
 Group revenue                 (2.5)        (4.3)

 

 

Digital revenue grew 2.5% over the quarter as a result of strong digital
trading, with the improved yield compensating for the page view volume decline
of 5% year-on-year. As previously communicated, advertisers brought some of
their spend forward to June and July to align with key events, including the
European Football Championships.  Our Customer Value Strategy is driving
higher levels of data-driven revenues which creates more valuable advertising
for our partners. Data-driven revenues grew 10% and now represent 46% of
digital revenues (FY23: 43%).

 

In Print, circulation revenues remain predictable, with the teams managing
cover price increases alongside strong promotional activity to mitigate the
volume headwinds. Print advertising revenue continues to outperform volume
declines, bolstered by demand from retailers.

 

Outlook

We remain confident in delivering expectations for the full year(2). We
continue to monitor the impact from the tech platforms' actions on referral
volumes, and we expect further digital growth in Q4. We remain focused on
costs and we are tracking slightly ahead of the 5-6% cost saving target we set
at the start of the year.

 

Jim Mullen, Chief Executive

 

"Our Customer Value Strategy continues to drive revenue diversification and
has helped us navigate the dynamic media backdrop. We continue to make good
progress with our investments including our US expansion, the re-platforming
of our websites and our in-house ad tech platform, Mantis.

While the quarter saw big news events such as the Olympics and developments in
the US elections, it also highlighted the importance of trusted news sources
to responsibly report on tragic events such as in Southport, especially in the
wake of disinformation and social unrest."

Notes:

 

 (1)  The results have been prepared for the 3 month period ending 30 September 2024
      and the comparative period has been prepared for the 3 month period to 24
      September 2023. There is one additional trading day within the 3 month and 9
      month period. No adjustment has been made for this.
 (2)  Market expectations compiled by the Company are an average of analyst
      published forecasts - consensus adjusted operating profit for FY24 £97.7m.
 (3)  As a reminder the comparative periods for Q423 and FY23 will include an
      additional trading week compared to Q424 and FY24. The like-for-like results
      will also be disclosed at the Full year results on Tuesday 4 March 2025.

 

 

 

 

 Enquiries

 Reach
 Jim Mullen, Chief Executive Officer
 Lija Kresowaty, External Communications              communications@reachplc.com
 Jo Britten, Investor Relations                       +44 (0)7557 557447

 Teneo                                                reachplc@teneo.com
 David Allchurch/Giles Kernick                        +44 (0)207 353 4200

 

About Reach

We're Reach plc, the UK's and Ireland's largest commercial news publisher.
We're home to more than 120 trusted brands, from national titles like the
Mirror, Express, Daily Record and Daily Star, to local brands like MyLondon,
BelfastLive and the Manchester Evening News, to our recently launched U.S.
titles. Every month, 47 million people come to us, via print and online, for
trusted news, entertainment and sport.

 

LEI: 213800GNI5XF3XOATR61

Classification: 3.1 Additional regulated information required to be disclosed
under the laws of the United Kingdom

 

 

 

 

 

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