Reach: Daily Mirror and Express owner beats profit forecasts
Reach, the owner of the Daily Mirror and the Express, beat annual profit forecasts on Tuesday as its efforts to cost cuts began to pay off.
Operating profit increased six per cent to £102.3m, exceeding analysts’ forecasts of £97.4m.
Earnings per share jumped 16 per cent to 25.3p even as revenue declined 5.3 per cent to £538.6m.
Print revenue continued a long-running downturn, falling 7.3 per cent year-on-year, but digital revenue returned to growth of £130m, up 2.1 per cent.
“We continue to demonstrate expert management of our print business, maximising revenue and reader value, while maintaining our focus on costs across the business,” chief executive Jim Mullen said in a statement.
“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.
He added: “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.”
Staff at the Mirror have reacted furiously to job cuts in recent years. The publishing giant axed nearly 800 roles two years ago in what amounted to the biggest cutting of jobs in the newspaper sector in decades.
Mullen came under fire after breaking a pledge not to cut more jobs the following year.
Reach’s cost-cutting programme has benefitted the share price and the stock has risen 45 per cent over the last 12 months.
Investors will receive a pay-out of 7.34p, in line with last year.