Reach grows digital revenues but loses out in print

The latest trading update from Reach (formerly Trinity Mirror) reveals a mixed bag after acquiring Express & Star earlier this year.

In the third quarter of 2018 Reach recorded a group revenue growth of 21%, resulting from its £200m acquisition of Richard Desmond’s national titles in February this year.

However, on a like-for-like basis (including Express & Star as if it had been owned from the beginning of 2017 and excluding the impact of portfolio changes), group revenue fell by 7% last quarter, as circulation and publishing print advertising revenue fell 4% and 20%, respectively.

Meanwhile, declines in print ad revenue were offset by a growth in publishing digital revenue of 7%, with display and transactional revenue growing by 12%.

The board has said it is confident that performance for the year will be in line with market expectations (which were updated following its interim results in July), expecting a profit before tax of between £132.1m and £133.9m.

“I am pleased with the progress being made on the integration of Express & Star and remain confident that we will deliver at least £20 million of annual synergy savings by 2020,” said Simon Fox, CEO, Reach.

“Our continued focus on tightly managing costs and driving digital revenue continues to provide confidence that performance for the year will be in line with market expectations.”