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
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| 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 |
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| Darren Fisher, Chief Financial Officer Laura Harris, Group Company Secretary |
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| Lija Kresowaty, Head of External Communications | |
| Jo Britten, Investor Relations Director | +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.
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