REG - Reach PLC - Trading Update

ReachAnnouncement

02/05/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240502:nRSB9095Ma&default-theme=true

RNS Number : 9095M  Reach PLC  02 May 2024

                                    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)
 Print revenue                  (6.0)
 -     Circulation revenue      (3.4)
 -     Advertising revenue      (10.7)
 Group revenue                  (6.7)

 

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

 

 (1)  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.
 (2)  Market expectations compiled by the Company are an average of analyst
      published forecasts - consensus adjusted operating profit for FY24 £97.6m.

 

 

 Enquiries
 Reach                                                communications@reachplc.com
 Jim Mullen, Chief Executive Officer
 Darren Fisher, Chief Financial Officer

 Laura Harris, Group Company Secretary
 Lija Kresowaty, Head of External Communications
 Jo Britten, Investor Relations Director              jo.britten@reachplc.com (mailto:jo.britten@reachplc.com)

                                                      +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

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTSSFFAFELSEFI