Reach, publisher of the Daily Record, Daily Mirror and Daily Express, posted a decline in profits and revenue as it imposes more cost cutting.
Revenue fell across the business as the management team seeks to shift the focus on to subscriptions and more video content.
Adjusted operating profit for the six months to the end of June fell by £1.8m to £43m, with an improved adjusted operating margin of 18.5%. Income was down 9% to £232.9m.
The company reported a 10.3% fall in adjusted operating costs due to disciplined cost management and restructuring efforts, leading to an improved adjusted operating margin of 18.5%.
Print revenue declined 8.3% to £178.0m (H125: £194.1m). Key constituents include print circulation £134.7m (H125: £144.3m) and print advertising £24.6m (H125: £27.7m), both outperforming the 22% decline in circulation volumes.
Despite a 11.4% decline in digital revenue, driven by lower referral volumes, direct digital revenues grew by 6% excluding local advertising.
The company generated £48.8 million in adjusted operating cash flow and maintained a leverage of 0.4x net debt to EBITDA, while announcing a rebased interim dividend of 1.44 pence per share. Reach said it remains on track to meet market expectations for the full year.
“We are on track to deliver on market expectations for the year and remain confident in our ability to navigate uncertainty. We will maintain financial discipline and strategic focus through this period, until our pension deficit payments are due to end in 2028.
“Guided by our strategic priorities, we are building a stronger business by investing in digital subscriptions and video, securing greater independence from referral traffic. Our future will be less about volume and more about original content, distinctive brands and securing better returns.”
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