Tuesday, 25 Feb 2020 11:48 GMT

Reach updates strategy as print revenue falls

Reach, publisher of the Daily Mirror and Daily Express, has revealed plans to counteract a fall in revenue and stabilise the company.

The publisher experienced a fall in like-for-like revenue last year of 5.3%. This took it from £723.9m to £702.5m.
Print revenue dropped by 7.9%, circulation revenue fell by 4.5% and advertising revenue by even more at 19.4%.

Despite this, the group experienced a stronger performance in digital with like-for-like revenue rising by 13.2% and average worldwide monthly page views growing by 25% year on year to 1.3bn.

In a strategy update published alongside these results, Reach has revealed plans to focus on content and continue to explore the possibility of acquisitions.

Although it is in decline, our print customer base is loyal and resilient

Commenting on the annual results for 2019, Jim Mullen, chief executive officer of Reach says: “Content is at the heart of the new customer value strategy we are announcing today. We have an unmatched reach in UK media and will deepen our relationships via increased customer engagement.

“Through this, we see significant potential to accelerate the diversification of our digital revenue and capture more value to deliver on our sustainable digital growth ambitions.”

Reach also noted structural cost savings of £12m and savings of £16m due to acquisition synergies after acquiring the Express & Star in 2018.

As an industry, we too often talk about the decline of our print products, but 15 million people read one of our newspapers and magazines each month

Addressing the documented decline in print figures throughout 2019, Mullen adds: “As an industry, we too often talk about the decline of our print products, but 15 million people read one of our newspapers and magazines each month.

“Although it is in decline, our print customer base is loyal and resilient and coupled with strong growth in our digital audience, we have an unparalleled reach in the UK of 47m – combined deduped print and digital reach – and we still remain the largest commercial national and regional news publisher in the UK.”

Mullen continues to explain how the publisher plans to uniquely identify print readers and understand its digital customers better in a bid to get a “better grasp” on its customer cross-over.

Having communicated interest in the acquisition of JPI Media in November last year before retreating, Reach has confirmed in the strategy update it will continue to consider merger and acquisition opportunities.



If you have an interesting story or a view on this news, then please e-mail news@printmonthly.co.uk

Follow Carys on:
 Jo Golding's Twitter Profile