Newspaper and online publisher Reach (LON: RCH) reported a small improvement in profit and digital page views increased in the fourth quarter. The Daily Mirror publisher is still facing a tough advertising market.
In 2024, revenues declined 4% to £538.6m, but pre-tax profit improved 4.5% to £97.2m. A lower tax change meant that earnings rose by 16% to 25.3p/share. The dividend is maintained at 7.34p/share.
Print revenues were down by 6% on a like-for-like basis. There was a 13.5% drop in advertising revenues. Digital revenues were 2% higher.
Net debt was lower than expected at £14.2m, but it is expected to rise to £35m at the end of 2025. The net pension deficit has been reduced to £34m and there could be a pension surplus in 2025. The annual pension payment is likely to be above £60m for the next three year, before falling to £15m in 2028.
Revenues are likely to decline but cost control should enable operating margins to remain around 19%. Panmure Liberum forecasts a 2025 pre-tax profit of £94.1m, with earnings covering a maintained dividend three times. The share price rose 0.6p to 87.2p.