27th Nov 2020 09:24
(Alliance News) - Reach PLC on Friday said revenue has seen a decline towards the close of its financial year but boasted of a growing online business, giving the media company confidence going forward.
Reach is a London-based newspaper, magazine and digital publisher with brands including Daily Mirror, Daily Star and Daily Express.
For the five months to November 22, revenue fell 14% year-on-year with print revenue driving the decline, having fallen 20% itself.
Reach however said it saw strong digital revenue growth of 16, and it claimed increased customer engagement.
"Circulation sales have remained resilient despite the recent lockdowns, supported by management action on availability and increased cross-promotion of national and regional titles," Reach said.
Reach added that it expects these trends continue into December, although noted that it is difficult to make any forecasts due to the macroeconomic uncertainties.
Reach has "significantly" reduced costs as part of a new, more efficient operating model.
"Given this cost focus and increasing digital contribution, the operating margin in the second half is expected to be materially ahead of the first half," Reach said.
Reach said customer registrations have now exceeded 4.3 million, and the company is on track to deliver the 10 million registrations it is targeting by the end of 2022.
Chief Executive Jim Mullen said: "The headwinds from Covid-19 have been considerable, but while we remain mindful of potential impacts from the current lockdowns, we approach the end of the year with a strong and growing digital business, resilient print circulation sales, and a new, efficient operating model. Our customer value strategy is now entering a new phase, with an increased focus on business intelligence and insight."
"Whilst macroeconomic uncertainty remains, we approach 2021 with confidence in the long-term value of our loyal audience and trusted brands and with strong digital momentum," he added.
Annual results for the year ending December 27 are due on March 1, 2021.
Reach shares were up 4.6% at 161.02 pence on Friday morning.
By Greg Roxburgh; [email protected]
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