Reach has revealed a 4.1 per cent decline in revenue for September, which the British publisher has blamed on the Queen’s death impacting advertising potential.
The London-headquartered firm, which owns titles including the Daily Mirror and Daily Star, saw digital revenue plummet 8.1 per cent year-on-year in September, with print revenue also falling 3 per cent.
It attributed the downturn to the passing of the Queen, which ‘benefited circulation but significantly reduced advertising due to the blackout during national mourning’.
British publisher Reach has revealed a 4.1 per cent decline in revenue for September, with the Queen’s death impacting advertising potential
During the two-week national mourning period, multiple brands deferred or cancelled scheduled campaigns.
Despite the lacklustre results, Reach’s shares 0.6 per cent higher, trading at 77.53 by midafternoon on Tuesday.
Overall, digital revenue for the Q3 period was up 1.1 per cent, with a 5.9 per cent leap in July and August.
This, the company said, ‘reflects ongoing momentum in data-led initiatives, continued growth in page views (6 per cent across the period) and stabilisation in comparative programmatic yields as Q2 headwinds moderated’.
Customer engagement was also reported to have grown, with page views per user and registered page views up during the period.
Reach’s total registered customer base is now over 12 million.
While print revenue fell 2.9 per cent, circulation revenues were up by 2 per cent, following recent price increases. Circulation overall in September was up 4.3 per cent as readers engaged with content related to the Queen’s death.
The Express and The Mirror grew aggregate volumes by around 30 per cent on the day following the Queen’s passing and the day after the funeral.
But the business noted this upside was ‘more than offset by an associated reduction in print advertising’, which was down by 17 per cent in July and August, and 32.2 per cent in September.
Reach estimates the overall net impact on trading for September was a decline in revenue of around 5 per cent.
Looking ahead, the firm expects circulation revenue ‘to be supported by increased cover prices, while advertising revenue should benefit from seasonally stronger yields, particularly around Black Friday and Christmas and from the football World Cup which starts in November’.
CEO Jim Mullen added: ‘We have made further good strategic progress as we continue to deliver quality content to a growing and increasingly engaged digital audience.
‘I am particularly proud of our teams who worked so tirelessly over recent weeks to produce such comprehensive, respectful, and sensitive coverage of the Queen’s passing, a truly once in a generation event.
‘Actions on costs are helping to mitigate inflationary pressures and while macro uncertainty persists, improved revenue trends during Q3 are a positive. The strength of our balance sheet underpins ongoing investment in the strategy, as we continue to transition to an increasing mix of higher quality digital earnings.’
Reach, which started as a company in the 19th century, now has more than 130 national and regional brands.
