Inflation-hit Reach achieves early subscription milestone
Reach, the Daily Mirror, OK! and regional newsbrand publisher, has reached its goal of 10 million customer registrations of Reach ID 10 months ahead of target.
However, the company has also warned of heavy inflation costs impacting print production as it unveiled its financial report for 2021 this morning.
The impact from inflation began to affect the business towards the end of 2021 but has now intensified the company said, with the gross impact of inflation in 2022 expected to be higher than in recent years.
Part of its customer value strategy, Reach now says its achievement on registrations will drive digital revenue to double by the end of 2024 from a 2020 base.
Reach ID is a unique identifier that provides data and customer insights across a user’s activity on websites for the publisher’s online newsbrands, newsletters, and hyperlocal site InYourArea. It enables the company to build a more detailed picture of its users, which in turn should enable enhanced data and customer insights.
Customer registrations have been a key focus for Reach to increase revenues from online advertising and improve customer experiences with better-targeted campaigns, customer offers and commercial partnerships.
The company had set a target of reaching 10 million subscriptions by the end of 2022, having achieved 5 million in December 2020. Registered customers show increased loyalty and engagement with Reach sites, it has found, as they respond to newsletters or comment on stories.
Reach announced the new milestone alongside its full-year financial report for 2021, which revealed a small increase (2.6%) in revenue to £615.9m.
Operating profit increased by 9.2% £146.1m on an adjusted basis, with the company citing savings from print site closures and a 2020 “transformation programme”.
Reach now expects to see a “modest year-on-year reduction in operating profit” for 2022.
Reach CEO Jim Mullen said: “We’ve completed the first phase of our Customer Value Strategy delivering a strong performance, with digital growth more than offsetting print decline. We’ve now hit our 10 million registrations target ahead of time and advertisers are embracing our portfolio of data-led products, which support significantly higher yields.
“Despite inflationary pressures in print, we’re committed to maintaining our focus on sustainable long-term profit growth, investing in product innovation and a more personalised user experience. Our strong balance sheet and cash generation underpins continued investment as we transition to an increased mix of higher quality digital earnings.”