Reach revenues contract as national mourning causes ad slowdown
Mirror and Daily Express publisher Reach saw revenues dip in the third quarter after a drop-off in advertising revenue in September as the country mourned the passing of the Queen.
Group revenue fell 1.9 per cent for the three months to September 25th, with print revenue tumbling 2.9 per cent for the period, Reach said in a trading update.
An advertising blackout in the national period of mourning caused a sharp fall in revenues in September, with total group ad revenues falling 32.2 per cent.
Bosses at Reach said the “once in a generation” event of the Queen’s passing had pushed up circulation figures however, with circulation revenue rising two per cent for the period and 4.3 per cent in September.
Chief executive Jim Mullen said the firm was now the firm was now taking steps to stifle the impact of rising costs on the firm in the months ahead.
“Actions on costs are helping to mitigate inflationary pressures and while macro uncertainty persists, improved revenue trends during Q3 are a positive,” he said.
“The strength of our balance sheet underpins ongoing investment in the strategy, as we continue to transition to an increasing mix of higher quality digital earnings.”
Reach warned of a potential consumer spending slowdown hitting revenues and said it was “mindful” of the potential impact of changing consumer behaviour on trading.