Reach (RCH)

Sector:

Media

Index:

FTSE Small Cap

93.80p
   
  • Change Today:
    -4.30p
  • 52 Week High: 420.00
  • 52 Week Low: 86.70
  • Currency: UK Pounds
  • Shares Issued: 316.06m
  • Volume: 823,271
  • Market Cap: £296.46m

Reach highlights slump in ad demand, shares tumble

By Michele Maatouk

Date: Thursday 05 May 2022

LONDON (ShareCast) - (Sharecast News) - Reach shares tumbled on Thursday after the Daily Mirror owner reported a drop in group revenue and said advertising demand had taken a hit as brands have been reluctant to place ads alongside news about the Ukraine war.
In the four months to 24 April, group revenue declined 0.9% year-on year. Within that, digital revenues were up 9.3%, while print revenue fell 4.2%. Circulation and advertising revenue dropped 5.7% and 10.1%, respectively, while printing and other revenue was up 21.6%.

The company, which also publishes OK magazine, among others, said that over the past two months the market has experienced reduced advertiser demand and lower average yields, with the war in Ukraine significantly reducing the level of 'brand safe' content for news publishers.

While this has led to lower growth than expected, Reach said it was improving the quality of its digital sales, with strong growth in higher yielding revenues, such as PLUS+, becoming a bigger part of the mix.

Reach still expects revenue for the year to be broadly flat, but with a higher mix of circulation revenues and lower digital contribution than previously anticipated due to more challenging trading conditions.

Chief executive Jim Mullen said: "We're developing a more sustainable and profitable long-term future for the business, with delivery of the strategy progressing well, despite a more challenging economic backdrop.

"The effective collection and use of data are supporting the growth of our higher yielding digital products, which are becoming an increasing part of our revenue mix. We've taken swift action to address the impact of inflation on our cost base and the business remains strongly cash generative, supporting the investment in data and technology that is key to future growth."

At 0900 BST, the shares were down 20% at 127.20p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

Reach Market Data

Currency UK Pounds
Share Price 93.80p
Change Today -4.30p
% Change -4.38 %
52 Week High 420.00
52 Week Low 86.70
Volume 823,271
Shares Issued 316.06m
Market Cap £296.46m

Reach Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
96.74% above the market average96.74% above the market average96.74% above the market average96.74% above the market average96.74% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Price Trend
50.63% below the market average50.63% below the market average50.63% below the market average50.63% below the market average50.63% below the market average
59.26% below the sector average59.26% below the sector average59.26% below the sector average59.26% below the sector average59.26% below the sector average
Income
98.85% above the market average98.85% above the market average98.85% above the market average98.85% above the market average98.85% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Growth
10.91% above the market average10.91% above the market average10.91% above the market average10.91% above the market average10.91% above the market average
28.30% above the sector average28.30% above the sector average28.30% above the sector average28.30% above the sector average28.30% above the sector average

What The Brokers Say

Strong Buy 4
Buy 0
Neutral 1
Sell 0
Strong Sell 0
Total 5
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Reach Dividends

  Latest Previous
  Interim Final
Ex-Div 11-Aug-22 12-May-22
Paid 23-Sep-22 10-Jun-22
Amount 2.88p 4.46p

Trades for 08-Aug-2022

Time Volume / Share Price
14:58 1,068 @ 93.61p
14:54 212 @ 93.61p
14:49 967 @ 93.80p
14:49 952 @ 93.80p
14:49 3,185 @ 93.60p

Reach Key Personnel

Chair Nick Prettejohn
CFO Simon Fuller
CEO Jim Mullen

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