Daily Mirror owner sees digital revenue grow 12.9% after job-cutting restructure
A commercial news publisher has today reported “strong” recovery following the restructuring of its business and the impact of coronavirus.
Reach PLC, which is based in London and owns regional and national news outlets, saw its digital revenue grow by 12.9 per cent in the third quarter of the year.
Overall group revenue in the period declined by 15 per cent year on year, compared to a 27.5 per cent drop in the second quarter.
This comes after the company, which owns the Daily Mirror, reduced its workforce by 500 roles and centralised its operations in a move expected to save £35m annually.
Jim Mullen, CEO of Reach, commented: “We have seen a strong recovery in the digital advertising market since the worst impacts of COVID-19 in April which has driven a return to healthy digital revenue growth since July, assisted by increased customer engagement and loyalty.
“This illustrates the significant potential of the customer value strategy as our websites, apps and newsletters attract increased page views from our scale audience, helping to drive forward digital revenues.
“Circulation sales have also stabilised and shown a gradual recovery during Q2 and Q3.
“Following the implementation of the major parts of the transformation programme, Reach now has a strong foundation to drive the next phase of the customer value strategy with increased efficiency and agility in our advertising and editorial operations.
“Our strengthened customer insight and innovation teams will assist us in driving stronger and deeper customer relationships, increasing our appeal to advertisers and driving revenue growth.
“With the business currently performing materially ahead of market expectations, the board is recommending an issue of bonus shares to shareholders.”
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