Reach Reports Drop in Revenue

By Christian Moess Laursen

Reach, a U.K. media company, announced a 7.8% drop in revenue for the third quarter, ending on September 24th. The decline in revenue is primarily attributed to lower referral volumes, a direct result of Facebook's deprioritization of news content. This shift has also led to decreased page views for publishers across the sector.

During this period, digital revenue fell by 14%, while print revenue saw a slide of 5.8%. Year-on-year page views declined by a significant 21%. Despite these challenges, Reach stands by its full-year profit guidance, ensuring stakeholders that it will meet market expectations. According to a consensus compiled by the company, Reach expects an adjusted operating profit of £95.0 million ($116.3 million) for the year.

In a move to strengthen its financial position, the media company plans to propose a capital reduction of £605.4 million. It is important to note that this reduction will not result in any payments to shareholders but will create additional distributable reserves.