2 May
2024
Reach plc
("The Company") Q1 Trading update for the 3-month period to 31
March 2024
On track to deliver full year
expectations
Customer Value Strategy
delivering growth in data-driven revenues with print remaining
resilient
|
|
Q1 YOY %
|
|
Digital revenue
|
(8.5)
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|
Print revenue
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(6.0)
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-
Circulation
revenue
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(3.4)
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-
Advertising
revenue
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(10.7)
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Group revenue
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(6.7)
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The factors affecting trading in Q1
remain unchanged from those outlined at the full year results with
performance continuing to be robust. These include the well
publicised deprioritisation of news during 2023 by major platforms
which meant that year-on-year page views declined 33%. This has
been partially offset by the strengthening yield per
page.
Data-driven revenue, which makes up
our Customer Value Strategy,1 and is higher value and
more targeted, continues to perform strongly, growing over the
period to make-up 45% of digital revenues (Q123: 39%). The growth
was driven by a combination of non-advertising revenues including
partnerships, ecommerce and affiliates and directly sold
advertising.
In Print, circulation revenues
remain a predictable and reliable revenue stream with the expected
volume decline mitigated by actions on cover prices and
availability. Print advertising revenue outperformed volume trends
due to higher spend levels from advertisers.
Cost savings
With the cost reduction programmes
implemented, we are confident in delivering the reduction in
operating costs of 5-6% in line with previous guidance.
Outlook
The year-on-year reduction in
referral traffic from the major platforms will lessen as we
progress through the year. Trading remains robust in what is a
challenging environment, and we remain on track to deliver full
year expectations.2
Jim
Mullen, Reach plc Chief Executive
"We have set the business up to succeed - the decision to take
cost action early, alongside the continued implementation of the
Customer Value Strategy is delivering a growing yield performance
and driving results. This gives me confidence that we can continue
to navigate current market conditions. With events like the
European Football Championships, Olympics and elections round the
corner we have the opportunity to generate high levels of interest
by entertaining and informing our audiences with brilliant
journalism."
Notes
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1
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Includes revenue from advertising
activity which utilises data generated via registrations, audience
behavioural or Mantis contextual. It also includes other
strategically driven revenues, less dependent on audience volumes
such as affiliates, partnerships and ecommerce.
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2
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Market expectations compiled by the
Company are an average of analyst published forecasts - consensus
adjusted operating profit for FY24 £97.6m.
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Enquiries
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Reach
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communications@reachplc.com
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Jim Mullen, Chief Executive
Officer
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Darren Fisher,
Chief Financial Officer
Laura Harris, Group Company
Secretary
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Lija Kresowaty, Head of External
Communications
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Jo Britten, Investor Relations
Director
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jo.britten@reachplc.com
+44 (0)7557 557447
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Teneo
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reachplc@teneo.com
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David Allchurch/Giles
Kernick
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+44 (0)207 353 4200
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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