3rd Mar 2026 12:51
(Alliance News) - Reach PLC on Tuesday said it swung to a hefty loss in 2025 after a GBP222.8 million non-cash impairment charge, as revenue fell and digital headwinds intensified, but it insisted it remains on track to meet market expectations in 2026 through further cost cuts.
The publisher of the Daily Mirror, Daily Express and a raft of UK regional titles reported a pretax loss of GBP165.9 million for the year ended December 31, compared with a profit of GBP62.8 million in 2024. It also posted an attributable loss of GBP132.3 million, swinging from a GBP53.6 million profit a year earlier.
The statutory loss was driven by a GBP222.8 million impairment charge, reflecting lower digital revenue expectations amid a sharp decline in referral traffic, particularly from Google, and a challenging macroeconomic backdrop.
Revenue fell 3.7% to GBP518.4 million from GBP538.6 million. Print revenue declined 4.6% to GBP388.1 million, while digital revenue slipped 0.9% to GBP128.9 million as on-platform page views dropped 8% year-on-year.
Despite the statutory loss, adjusted operating profit rose 2.4% to GBP104.7 million from GBP102.3 million, as adjusted operating costs were cut 5.2%, ahead of the company's 4% to 5% target. The adjusted operating margin improved to 20.2% from 19.0%.
Chief Executive Piers North said the group had delivered "strong financial performance" in a year marked by disruption.
"We are pleased to have increased our adjusted operating profit to GBP104.7m, driven by decisive action on costs as we move forward with a leaner and more strategic structure," he said.
Reach maintained its total dividend at 7.34 pence per share for 2025, including a final payout of 4.46p, flat year-on-year.
The company said it remained highly cash generative, with adjusted operating cash flow of GBP103.5 million and operating cash conversion of 99%. Net debt at the year end stood at GBP34.9 million, compared with GBP14.2 million a year earlier, reflecting ongoing pension payments and investment.
Looking ahead, Reach said it was "on track to deliver market expectations" in 2026, underpinned by a further 5% to 6% reduction in adjusted operating costs. However, it warned that it is taking a "cautious approach" to digital performance amid continued lower referral volumes and a challenging macro environment.
In the first two months of 2026, trading has continued against a backdrop of weaker referral traffic and economic uncertainty.
The group last month announced it would close two of its three print sites, in Saltire, Scotland, and Watford, Hertfordshire, in a move affecting nearly 240 staff. Operations at its Oldham, Manchester, site will be expanded, while some work will be outsourced. The closures are expected to deliver a compelling internal rate of return, with a two-year cash payback, though the cash cost of change is estimated at around GBP25 million.
North did not rule out further job cuts as the business continues to reshape itself.
"We will always look at our cost base," he told the Press Association, adding that staff "know that change is constant and that we're currently looking at how we're structured".
Reach said print remained a reliable source of cash generation, with teams offsetting a 19% decline in print circulation volumes through cover price increases and promotional activity. It sold more than half a million newspapers a day in 2025.
Digital revenues proved resilient overall, with revenue per thousand page views rising 8% year-on-year, even as on-platform traffic fell sharply in the second half.
As part of its strategy to "connect, accelerate and diversify", Reach has expanded its video operations, placing more than 100 specialist video roles across its newsrooms. It is also rolling out digital subscriptions, with six launches to date and around 15,000 subscribers by year end, alongside 17,000 e-edition subscribers.
The group is targeting more than 75,000 subscribers in 2026 and is investing in ecommerce and partnerships to diversify revenue beyond traditional advertising.
Reach shares were down 13% at 60.18 pence in London on Tuesday afternoon.
By Eva Castanedo, Alliance News reporter
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