(Sharecast News) – UK newspaper publisher Reach reported a 23.5% fall in half-year operating profit as it was hit by Facebook’s decision to relegate news content.
The company, which produces the centre-left Daily Mirror and hard-right Daily Express tabloids, on Tuesday said operating profit came it at £36.1m for the 26 weeks to June 25, compared with £47.2m a year ago.
“We remain on track with expectations for the full year, despite macroeconomic uncertainty and the year on year decline in page views,” Reach said.
“Although external factors are impacting digital growth for 2023, our focus on customer engagement and diversifying digital revenues is helping to mitigate the impact and we expect to benefit from less demanding second half comparatives.”
Reach added that plans to cut full-year operating costs by 5-6% “are on track” with second-half weighted savings supporting profit expectations for 2023 which were still in in-line with current market consensus of a £94.9m adjusted operating profit.
Reporting by Frank Prenesti for Sharecast.com