In the update for the four-month period to 23 April 2023, the business said its group revenue for the period was down 5.9%, against strong comparatives, broadly unchanged from the year to date performance highlighted in its full year results in March, and in line with its expectations.
The company said its print revenue has remained strong and that volumes remain robust, with circulation revenue (up 2.1%) benefitting from cover price increases during FY22, and advertising revenue (down 19.2%) slightly ahead of its expectations.
While macroeconomic conditions mean the overall market for digital advertising is challenging, Reach added, data-driven revenue continues to outperform.
Reduced demand continues to be reflected in lower sector yields, particularly in the open market. The page view slowdown has continued, the company said, with recent changes to the way Facebook presents news content, causing a reduction in referred traffic across the sector.
Reach said its investment in the US continues to progress and that it currently has nearly 100 full-time roles in place and expects to launch US domain websites for both The Express and Mirror over the next few months.
As previously announced, the business said it is expecting a reduction in operating costs of between 5% and 6% during FY23, with actions to deliver this well advanced and most of these savings set to be realised during H2.
Reach chief executive Jim Mullen said: “External factors continue to impact digital revenue, delivery of the customer value strategy is driving a higher quality mix, underpinned by the strength of print.
“Our focus on data means customers are receiving and responding more often to relevant content and a more engaging user experience. Our scale, US expansion, strategic delivery and strong balance sheet give us confidence for the future.”
Additionally, the business said its H2 digital comparatives are less demanding, mainly due to suppressed Black Friday and Christmas trading last year, while its profit expectations for FY23 “remain in-line with market consensus”.
