In a trading update released today (15 October) for the three-month period to 30 September 2024, the publisher of newspapers including the Mirror, Express, Daily Record and Daily Star said its print revenue was down 3.9% year-on-year in Q3 – with circulation revenue down 1.9% and advertising revenue down 9.1%.
Digital revenue grew by 2.5% over the quarter as a result of strong digital trading, with the improved yield compensating for the page view volume decline of 5% year-on-year. Overall group revenue was down 2.5% in the period.
Reach said its advertisers brought some of their spend forward to June and July to align with key events, including the European Football Championships.
The company said its Customer Value Strategy was driving higher levels of data-driven revenues, which creates more valuable advertising for its partners. Data-driven revenues grew 10% and now represent 46% of digital revenues (FY23: 43%).
In print, the company said circulation revenues remained predictable, with the teams managing cover price increases alongside strong promotional activity to mitigate the volume headwinds.
Print advertising revenue has continued to outperform volume declines, bolstered by demand from retailers, Reach added.
For the nine months of 2024 so far, Reach said its print revenue has fallen by 5.4% year-on-year, with its circulation revenue down 3% and its advertising revenue down 10.8%. Group revenue for the nine months is down 4.3% year-on-year.
Chief executive Jim Mullen said: “Our Customer Value Strategy continues to drive revenue diversification and has helped us navigate the dynamic media backdrop.
“We continue to make good progress with our investments including our US expansion, the replatforming of our websites and our in-house ad tech platform, Mantis.
“While the quarter saw big news events such as the Olympics and developments in the US elections, it also highlighted the importance of trusted news sources to responsibly report on tragic events such as in Southport, especially in the wake of disinformation and social unrest.”
Looking ahead, Reach said it remained confident in delivering its expectations for the full year. It was continuing to monitor the impact from the tech platforms’ actions on referral volumes, and said it expected further digital growth in Q4.
The business said it remained focused on costs and was tracking slightly ahead of the 5-6% cost saving target it set at the start of the year.
Reach’s share price climbed in early trading today to 97.80p but had settled down to 94.97p at the time of writing shortly before lunchtime, up 1.25% on yesterday’s close. (52-week high: 112.80p, low: 58.47p).
