27th Jul 2021 10:52
(Alliance News) - Reach PLC on Tuesday brought back its dividend for the first half of its financial year, amid a strong revenue performance, with profit exceeding market expectations.
Shares in the London-based owner of the Daily Mirror, Daily Star and Daily Express newspapers were 7.2% higher at 335.50 pence on Tuesday in London.
For the six months ending June 27, the newspaper and magazines publisher posted a pretax profit of GBP25.7 million, up 2.0% from GBP25.2 million in the same period a year prior.
Stripping out exceptional items, which includes the impairment of right-of-use assets, and provisions for historical issues including civil claims related to unlawful information gathering and phone hacking, pretax profit was GBP67.8 million, a 27% rise from GBP53.5 million.
Total revenue for the first half was 4.0% higher year-on-year at GBP302.3 million from GBP290.8 million, and was up 2.6% on a like-for-like basis.
Segmentally, Reach's Digital segment continued to perform well, with revenue rising 43% to GBP68.8 million, as a result of improved yields, and a general sector shift towards digital advertising.
Print revenue, although it remains the biggest contributor to group revenue, was down 5.2% at GBP232.4 million, as circulation revenue dropped 5.1% to GBP160 million, with circulation volumes for Reach's national daily titles dropping 10%, while the national Sunday titles declined 12%.
Reach declared an interim dividend of 2.75 pence per share, after cash payouts were suspended a year prior due to Covid-19 uncertainty. The dividend is 4.6% higher than the value of the non-cash bonus issue of shares issued in lieu of an interim dividend last year, the company noted.
Looking, ahead, Reach said it is currently trading ahead of its annual expectations. Trading during the first half benefited from softer comparatives a year before, due to the effect of the first UK national lockdown.
This benefit is expected to unwind during the second half, however the company expects continued momentum driven by an improvement in print circulation and continued digital growth.
"Reach is transforming its prospects and with strong momentum in the Customer Value Strategy we now have a clear pathway to sustainable growth. Our people continue to deliver on our core purpose as champions, campaigners and changemakers. Award-winning national and local journalism is delivering consistently higher audience engagement, supported by increased customer insight. As a result, we have been able to increase investment in journalism and the applied data technology that is key to us achieving our ambition of doubling digital growth over the medium term," said Chief Executive Officer Jim Mullen.
By Dayo Laniyan; [email protected]
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