Reach plc report as follows:
Jim Mullen chief executive: “Our good performance in 2024 saw our digital business move back to growth, driven by our Customer Value Strategy and diversification into areas like affiliates and ecommerce. Our use of data allowed us to drive greater value from our digital content, increase engagement and deliver better performance for our advertisers. We continue to demonstrate expert management of our print business, maximising revenue and reader value, while maintaining our focus on costs across the business.
“The media landscape has continued to evolve, and the year saw us adapt our own proposition with the introduction of the Content Hub and increased video capability. Our audiences have responded positively, demonstrating support for our offer and for the value of free-to-access, advertising-funded journalism that informs, is reliable and gives them a voice. We are well placed for 2025.”
FY2024 Highlights
- Revenue declined 5.3% to £538.6m, as Print revenue of £406.7m, (FY23: £438.8m) was down 7.3%, 6.0% like-for-like, but importantly outperformed the volume trends, while digital revenue returned to growth £130.0m (FY23: £127.4m) up 2.1%
- Strong trading of digital advertising with yields growing 19%
- The Customer Value Strategy drove a 6.8% increase in data-driven digital revenues. These are more sustainable and valuable, continuing to outperform the market and now represent 45% of total digital revenues (FY23: 43%)
- The Group continued its strong record in managing operating costs to deliver a 6.5% like-for-like reduction to £439.1m (FY23: £475.0m)
- Adjusted operating profit increased by 6.0% ahead of market expectations, at an improved margin of 19.0% (FY23: 17.0%)
- Highly cash generative with adjusted operating cash flow of £107.3m (FY23: £91.9m)(5), cash conversion of 105% (FY23: 95%) and closing net debt of £14.2m
- Total dividend maintained at 7.34p
Q4 Highlights
- Strong digital performance, with revenue up 8.6% like-for-like
- Page view growth of 6%, and increased audience engagement through the use of data
- Like-for-like Print circulation performance was in line with trends for the year, demonstrating its resilience as a revenue stream
- Print advertising revenue performed well, given the unusually high level of activity by food retailers in the comparable quarter last year
- Strong growth in direct advertising and from the success of our more seasonal activities such as the OK! Beauty Box advent calendar and affiliates
We remain focused on delivering our Customer Value Strategy, optimising our print assets, controlling our costs and managing our cash to continue building a more sustainable business for the future. We remain alive to the uncertain macro environment and dynamic media backdrop. Despite this we continue to expect digital growth, along with a reduction on adjusted operating costs of 4-5%.
Trading performance across the first two months of 2025 has been encouraging, supported by growing audience numbers. The Group is confident of delivering in line with current market expectations for the full year.(6)
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