Reach: Mirror and Express publisher’s digital revenue hit by Facebook changes – but print shows promise
Reach, the publisher of the Daily Mirror and Express newspapers, revealed a decline in digital but print has shown promising signs, as circulation revenue grows and print costs fall.
The company reported digital revenues are down over 16 per cent from the same period last year to £217m, as page views tumble and lower referral traffic hits, particularly following Facebook’s “deprioritisation” of news content.
Its share price jumped 17 per cent this morning, as the Telegraph Media Group, which owns the Daily Telegraph and Sunday Telegraph, reported positive subscriber numbers in a boost to the industry.
Despite the challenges faced in the digital space, Reach’s data-driven revenue now represents an 41 per cent of its digital income, giving the company an advantage amid the industry’s transition away from third-party cookies.
The publisher, which also owns the Daily Star and other regional titles across the UK, posted a “strong” print circulation performance, rising 2.4 per cent since the first half of 2022.
Reach said the growth “reflects print resilience” even though revenues tumbled 2.7 per cent in the first half of the year.
Total revenue fell 6.1 per cent in the 26 weeks to June 25.
“The ongoing resilience and predictability of print underpins continued investment in a strong digital offering, with circulation revenue growing and newsprint costs starting to decline,” said Reach boss Jim Mullen.
He added: “Cash generation is supported by a focus on driving efficiencies, with cost reductions on plan and expected to support a stronger second half performance.”
Reach have kept their full year expectations for 2023, in line with Wall Street consensus.
In January of this year, Reach said it’d cut more than 200 jobs in a £30m cost-saving drive. Hundreds of jobs in journalism have gone in recent years, as costs soar and the shift to digital means pressure on the print industry.