Reach plc reports as follows:
Q3 digital trading continues to see the impact of ongoing industry-wide disruption in referrals, primarily from Google.
Indirect revenues were impacted by the lower on-platform audience, partially mitigated by improved revenue growth off-platform. Off-platform revenues include 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. These include reinforcing our well-known brands, monetising our high-quality video content, and diversifying our revenue streams away from traditional on-platform advertising.
Print revenue decreased with circulation volumes in line with levels reported in Q2. Print advertising performed strongly, boosted by the FIFA World Cup.
Group restructure
During the period we launched a restructuring of the Group and expect 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.
Outlook
The Group maintains its cautious outlook for digital revenues and remains on track to deliver in line with market expectations for the full year.2
Piers North, chief executive: “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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