Trading Update

Customer Value Strategy delivering growth in data-driven revenues with print remaining resilient

Q1 YOY %

The factors affecting trading in Q1 remain unchanged from those outlined at the full year results with performance continuing to be robust. These include the well publicised deprioritisation of news during 2023 by major platforms which meant that year-on-year page views declined 33%. This has been partially offset by the strengthening yield per page.

Data-driven revenue, which makes up our Customer Value Strategy,1 and is higher value and more targeted, continues to perform strongly, growing over the period to make-up 45% of digital revenues (Q123: 39%). The growth was driven by a combination of non-advertising revenues including partnerships, ecommerce and affiliates and directly sold advertising.

In Print, circulation revenues remain a predictable and reliable revenue stream with the expected volume decline mitigated by actions on cover prices and availability. Print advertising revenue outperformed volume trends due to higher spend levels from advertisers.

Cost savings

With the cost reduction programmes implemented, we are confident in delivering the reduction in operating costs of 5-6% in line with previous guidance.

Outlook

The year-on-year reduction in referral traffic from the major platforms will lessen as we progress through the year. Trading remains robust in what is a challenging environment, and we remain on track to deliver full year expectations.2

Jim Mullen, Reach plc Chief Executive

"We have set the business up to succeed - the decision to take cost action early, alongside the continued implementation of the Customer Value Strategy is delivering a growing yield performance and driving results. This gives me confidence that we can continue to navigate current market conditions. With events like the European Football Championships, Olympics and elections round the corner we have the opportunity to generate high levels of interest by entertaining and informing our audiences with brilliant journalism."

Notes

Kingdom