UK publisher Reach H1 revenue falls on print, digital declines
UK publisher Reach H1 revenue falls on print, digital declines
Overview
UK news publisher's H1 revenue fell yr/yr amid print and digital declines
Adjusted operating profit dropped 4.1% but margin improved to 18.5%
Interim dividend halved to 1.44p to boost financial flexibility and organic investment
Outlook
Reach expects to meet FY26 market expectations, with consensus adjusted operating profit at £95.9m
Company expects full-year adjusted operating cost savings similar to H1, supported by print closures
Reach expects operating margins to remain at similar levels in 2027, with industry headwinds persisting
Result Drivers
DIGITAL REVENUE PRESSURE - Digital revenue fell 11.4% due to a 40% drop in on-platform audiences, mainly from lower Google referral volumes, partly offset by growth in direct revenues from video and subscriptions
PRINT DECLINE - Print revenue dropped 8.3% as circulation volumes fell 22%, impacted by cover price increases and cost of living pressures
COST ACTIONS - Adjusted operating costs fell 10.3% due to restructuring, print site consolidation, and overhead reductions, helping offset revenue declines and improve margins
Company press release: ID:nRSV2984Na
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue | Miss | GBP 232.90 mln | GBP 236.40 mln (1 Analyst) |
H1 Adjusted Operating Profit | Beat | GBP 43 mln | GBP 39.70 mln (1 Analyst) |
H1 Operating Profit |
| -GBP 43.50 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the consumer publishing peer group is "buy"
Wall Street's median 12-month price target for Reach PLC is GBp139.00, about 135.6% above its July 21 closing price of GBp59.00
The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 3 three months ago
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)