Reach publishes half yearly results

On Monday, Reach plc announced its half-yearly results for the 26-week period ended 28 June 2020.

Reach publishes half yearly results

Reach claims it is “performing materially ahead of 2020 market expectations”.

According to the company, key highlights include:

  • Strong recovery in digital advertising and increased customer engagement across all channels secured year on year digital revenue growth in Q3 of 12.9%.
  • Effective strategic and operational delivery with over 3.5m customer registrations, with new and improved platforms driving record digital audiences and increased page views.
  • Transformation programme across editorial, advertising and central operations provides a strong foundation to accelerate customer value strategy, with cost base reduced by at least £35m.
  • The Group is currently performing materially ahead of market expectations for the full year though management remain fully aware that COVID-19 still represents a significant macro-economic challenge to the UK economy, with the potential for subsequent negative impacts on the business.

Commenting on the interim results for 2020, Jim Mullen, Chief Executive Officer, Reach plc, said: “We have seen a strong recovery in the digital advertising market since the worst impacts of COVID-19in April which has driven a return to healthy digital revenue growth since July, assisted by increased customer engagement and loyalty. This illustrates the significant potential of the customer value strategy as our websites, apps and newsletters attract increased page views from our scale audience, helping to drive forward digital revenues. Circulation sales have also stabilised and shown a gradual recovery during Q2 and Q3.

Following the implementation of the major parts of the transformation programme, Reach now has a strong foundation to drive the next phase of the customer value strategy with increased efficiency and agility in our advertising and editorial operations.

Award-winning journalism and content enable our news brands to shape the daily conversations of millions of people. Moving forward we will see continued momentum from new and improved products. Our strengthened customer insight and innovation teams will assist us in driving stronger and deeper customer relationships, increasing our appeal to advertisers and driving revenue growth. This will enable Reach to continue to deliver for stakeholders over the long-term. With the business currently performing materially ahead of market expectations, the Board is recommending an issue of bonus shares to shareholders.”

Click here to read the full report.