- Group revenue year-on-year down 6.7%
- Print revenue down 6%
- Circulation revenue down 3.4%
Shares in Reach (RCH) were up over 9% to 81p in morning trading as one of the UK’s biggest newspaper groups said it was ‘on track’ to deliver full year expectations.
Investors seemed to ignore the 6.7% fall in group revenue with print revenue falling 6% and circulation revenue falling 3.4% in the first quarter.
The company said it was confident in delivering a reduction in operating costs of 5% to 6% as previously guided.
Other bright spots for the three months to 31 March 2024 were data-driven revenue, growing over the period to make up 45% of digital revenues.
The growth was driven by a combination of non-advertising revenues including partnerships, ecommerce and affiliates and directly sold advertising.
CEO Jim Mullen believes future events like the European Football Championships, Olympics and elections will generate ‘high levels of interest’ in the group’s titles.
Reach owns regional UK titles including the Manchester Evening News, Birmingham Mail and Liverpool Echo as well as national newspaper titles the Mirror, Express and Star.
NUMIS VIEW
Numis said Reach’s first quarter update was in line with expectations with improved digital revenue: ‘Reach is well positioned to benefit from UK cyclical recovery, boosting earnings momentum and potential multiple re-rating.’
