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Daily Mirror owner Reach says FY performance exceeds market expectations
27th Nov 2020 07:39
(Sharecast News) - Magazine and newspaper publisher Reach said on Friday that its full-year performance has exceeded market expectations amid strong digital growth.
The owner of the Daily Mirror said digital revenue grew 16.2% in the five months to 22 November, while circulation sales have remained resilient despite recent lockdowns. Overall for the five-month period, group revenue fell 13.9%, with print revenue down 19.6%.
"The group expects these trends of strong digital growth and resilient circulation to continue into December, while recognising that the current macroeconomic uncertainties make forecasting more challenging," it said.
Reach said that over the period, costs were "significantly" reduced, underpinned by its transformation programme. As a result of this and increasing digital contribution, the operating margin in the second half is expected to be "materially ahead" of the first half.
Customer registrations have now exceeded 4.25m and the company is on track to deliver the 10m registrations targeted by the end of 2022.
Reach also said on Friday that a consultation on plans to consolidate its printing operations, which would involve the closure of two of its six printing sites, is ongoing.
Chief executive officer Jim Mullen said: "The headwinds from Covid-19 have been considerable, but while we remain mindful of potential impacts from the current lockdowns, we approach the end of the year with a strong and growing digital business, resilient print circulation sales, and a new, efficient operating model.
"Whilst macroeconomic uncertainty remains, we approach 2021 with confidence in the long-term value of our loyal audience and trusted brands and with strong digital momentum."
The owner of the Daily Mirror said digital revenue grew 16.2% in the five months to 22 November, while circulation sales have remained resilient despite recent lockdowns. Overall for the five-month period, group revenue fell 13.9%, with print revenue down 19.6%.
"The group expects these trends of strong digital growth and resilient circulation to continue into December, while recognising that the current macroeconomic uncertainties make forecasting more challenging," it said.
Reach said that over the period, costs were "significantly" reduced, underpinned by its transformation programme. As a result of this and increasing digital contribution, the operating margin in the second half is expected to be "materially ahead" of the first half.
Customer registrations have now exceeded 4.25m and the company is on track to deliver the 10m registrations targeted by the end of 2022.
Reach also said on Friday that a consultation on plans to consolidate its printing operations, which would involve the closure of two of its six printing sites, is ongoing.
Chief executive officer Jim Mullen said: "The headwinds from Covid-19 have been considerable, but while we remain mindful of potential impacts from the current lockdowns, we approach the end of the year with a strong and growing digital business, resilient print circulation sales, and a new, efficient operating model.
"Whilst macroeconomic uncertainty remains, we approach 2021 with confidence in the long-term value of our loyal audience and trusted brands and with strong digital momentum."