Reach reaffirms guidance after first-half audience growth
By Josh White
Date: Thursday 24 Jul 2025
(Sharecast News) - Reach reported a steady first-half financial performance on Thursday, with digital revenue and audience growth helping to offset print declines and support operating margins, as the UK's largest commercial news publisher launched a new set of strategic priorities focused on audience engagement, AI and subscriptions.
Group revenue fell 3.4% year-on-year to £256m, with digital revenue rising 1.8% to £61.1m and print revenue down 4.8% at £194.1m.
Despite the top-line decline, adjusted operating profit edged higher to £44.8m, reflecting tight cost control, with the operating margin improving to 17.5% from 16.8%.
Operating costs were cut by 4.2% to £212.4m.
"Today marks the beginning of a new chapter for our business, as we launch the priorities that will fuel our growth," said chief executive Piers North.
"These include initiatives to reach new audiences, increase our video content and accelerate our tech and AI capabilities.
"Crucially, we'll do more work to diversify our revenues, putting a serious focus on adding subscriptions to our revenue mix."
North said audience growth had been driven by "innovative content and distribution hubs, our in-house recommender tools, and our US expansion".
Page views rose 6% over the period, contributing to a 9.2% rise in indirect digital revenues, which include social and off-platform income.
Direct digital revenues fell 7.9%, hit by a tougher market and comparatives, particularly in local news.
Print circulation revenue dropped 3.7% to £144.3m, while print advertising declined 15.4% to £27.7m.
However, circulation continued to outperform volume trends, supported by promotional efforts and special editions tied to sporting events.
Group advertising revenue fell 15.4%.
Adjusted operating cash flow was £45.8m, down from £57.7m in the prior year, with a cash conversion rate of 102%.
Net debt rose to £26m, up from £14.2m at the 2024 year-end.
The interim dividend was held flat at 2.88p per share.
In the second quarter, digital revenue growth accelerated to 2.1%, up from 1.6% in the first quarter, despite strong prior-year comparatives driven by the Men's European Championship and other high-profile events.
Print revenues declined 4.6% in the second quarter, slightly better than the first quarter's 5.1% fall.
The group outlined three strategic pillars to drive growth - expanding and deepening audience connections through video and differentiated content, accelerating use of AI and data platforms, and diversifying revenues via digital subscriptions, ecommerce and video monetisation.
Diversified revenues rose 10% year-on-year in the half.
Reach reaffirmed its full-year guidance, saying it was confident in delivering market expectations despite macroeconomic uncertainty and evolving referral dynamics, including the recent impact of Google's core update in July.
The group reiterated its commitment to delivering 4% to 5% in cost savings for the year.
At 1047 BST, shares in Reach were up 3.45% at 78p.
Reporting by Josh White for Sharecast.com.
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