Reach shares jump as job cuts, Euros, Taylor Swift tour boost profits
Shares in Daily Mirror publisher Reach jumped on Wednesday as the company said it was on track to meet annual guidance after the European football championship, Taylor Swift’s Eras Tour and the UK General Election boosted advertising revenues.
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The media group, which also publishes the hard-right Daily Express, said revenue for the six months to June 30 fell 5.2% to £265m.
Numbers were also helped by axing staff and implementing deep cost cuts as the struggling media group wrestles with the decline of print advertising - in the last year it has cut almost 800 roles across its titles - newspaper revenues were down by 6%.
Digital revenue at £60m was flat, but Reach said it still expected full-year adjusted profit of £97.6m.
Adjusted operating profit for the period rose 23.1% to £36.1m, while pre-tax profit surged to £33m from £6.7m. Shares in the company were up almost 5% in early trade.
Operating margin increased to 16.8% in the first half, up from 12.9% in the same period last year.
"We are trending slightly ahead of a full year reduction in operating costs of 5-6%. The phasing of cost initiatives and inflation during 2023 and 2024 means that operating profits will be more equally weighted between the first and second half of the year," the company said.
Reporting by Frank Prenesti for Sharecast.com