Media group Reach, whose titles include the Daily Record and Daily Express, continues to see a decline in revenue in its core operations.
Third quarter digital trading has seen the ongoing impact of industry-wide disruption in referrals, primarily from Google.
Indirect revenues – advertising or commercial income from social media (off-platform) or programmatically via its websites (on-platform) – were impacted by the lower on-platform audience.
This was partially mitigated by improved revenue growth from sources such as AI licensing, supported by a recently secured agreement with a major tech platform.
“Looking ahead, we are executing our strategic priorities to counter these headwinds and build a more sustainable business,” said the company as it revealed group revenue for the period down 14.1% year on year.
It is monetising video content and diversifying revenue streams away from traditional on-platform advertising.
Print revenue decreased with circulation volumes in line with levels reported in Q2, though print advertising performed strongly, boosted by the FIFA World Cup.
During the period it launched a restructuring of the group and expects full-year operational cost savings to exceed the 10%, delivered across the first half of the year.
Total cash restructuring costs for the full year, including those relating to the print site closures, are estimated to be between £35-40m.
The group maintains its cautious outlook for digital revenues and said it remains on track to deliver in line with market expectations for the full year.
Piers North, chief executive, said: “We are making strategic progress in an evolving digital landscape with a focus on original content, distinctive brands, and revenue diversification.
“We will continue to maintain strict financial discipline until pension deficit payments end in 2028.”
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