Reach Expects Full-Year Results to Exceed Market Views

Reach plc, the UK's largest commercial news publisher, has reported that it expects its full-year results to exceed market views, despite a challenging macroeconomic environment. The company's shares rose by 18% following the announcement, giving it a market cap of £266m.



The company's chief executive, Jim Mullen, attributed the positive outlook to the resilience of its print business and the growth of its data-driven digital revenues. Reach's print business has remained "predictable and reliable," while its digital operations have become more robust, with data-driven revenues falling by just 4% to £55.3m. This revenue stream, derived from advertising activity using first-party data gathered under Reach's customer value strategy (CVS), has seen the average revenue per thousand pages (RPM) from digital page views increase by 11% compared to 2022.



Reach's CVS has also led to an increase in the number of registered customers, with around four million active users over each four-week period. The company has launched a secure audience strategy, which focuses newsrooms on increasing the number of page views from reliable sources, further boosting its digital revenues.



Mullen also highlighted the company's strong balance sheet, which supports long-term growth, dividend, and pension commitments. Reach's pension fund deficit currently stands at £106.4m, with top-up payments expected to be made as required.



Investment bank Panmure Gordon noted that the results were ahead of expectations, given the macroeconomic impacts. The bank also pointed out that the likely end of the rate rising cycle and falling newsprint prices bode well for Reach's future performance and valuation.

In conclusion, Reach's expectations for full-year results to exceed market views reflect the company's ability to navigate challenging macroeconomic conditions and drive growth through its Customer Value Strategy. The company's strong balance sheet and resilient print business further support its positive outlook. Investors appear to be optimistic about Reach's prospects, with shares rising following the announcement.