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Reach PLC (LON:RCH) has reported its half-year results for the period ending June 30, 2024. The company experienced a 5.2% decline in revenue, totaling £265.0 million. Digital revenue remained relatively stable at £60.0 million, slightly below the £60.8 million recorded in HY23, but showed improvement over the period with momentum shifting from a 8.5% decline in Q1 to a 6.7% increase in Q2.
Print revenue faced challenges, with circulation revenue dropping to £149.9 million from £155.4 million in HY23, and print advertising revenue falling to £32.7 million from £37.0 million in the prior year. Despite these declines, performance in both segments outpaced the general volume reduction, which remains consistent with historical trends.
Cost Management and Profitability
Effective cost management has been a key focus for Reach PLC. The company successfully reduced total adjusted operating costs by 9.3% to £221.8 million, down from £244.6 million in HY23. This cost reduction contributed to a 23.1% increase in adjusted operating profit, with a margin of 16.8%, up from 12.9% in HY23 and close to the 17.0% margin achieved in FY23.
Shareholder Returns and Dividend
Reach PLC has maintained its interim dividend at 2.88p per share, reflecting the company's commitment to delivering consistent returns to shareholders despite the challenging market conditions.
FY24 Outlook
Looking ahead to the full year, Reach PLC is on track to meet market expectations. The company remains focused on advancing its operational plans and building a more sustainable digital business. The Customer Value Strategy is expected to enhance data-driven revenues and bolster print performance amid a difficult macroeconomic environment.
Operating cost reductions are trending slightly ahead of the projected 5-6% decrease for the full year. The impact of cost initiatives and inflation has led to a more balanced distribution of operating profits between the first and second halves of the year.
Advertising Spend and Market Dynamics
The end of the reporting period saw increased advertising spend, driven by events such as the European Football Championships. Trading in July has met expectations, and Reach PLC continues to navigate the challenges posed by dominant tech platforms affecting search and referral traffic. The company is working to build resilience through its Customer Value Strategy and remains confident in its ability to deliver on market expectations.
