Reach H1 revenues and operating profits grow

Publishing firm Reach said on Tuesday that both revenues and operating profits had improved in the six months ended 27 June.

Reach said first-half adjusted operating profits came to £68.9m, up 25.5% year-on-year, while interim revenues ticked up 4% to £302.3m. Like-for-like revenues were up 2.6%, with digital up 42.7% to £68.6m and print down 5.2% at £232.4m.

The London-listed firm's adjusted earnings per share increased 27.1% to 17.8p, while adjusted operating profit margins expanded from 18.9% at the midway point of 2020 to 22.8% at the end of June 2021.

Reach's interim adjusted operating costs came to £234.9m, down slightly from the £236.2m reported a year ago, with savings from its 2020 transformation programme being partly offset by increased investments and the annualisation of one-offs.

Chief executive Jim Mullen said: "Reach is transforming its prospects and with strong momentum in the customer value Strategy we now have a clear pathway to sustainable growth.

"Award-winning national and local journalism is delivering consistently higher audience engagement, supported by increased customer insight. As a result, we have been able to increase investment in journalism and the applied data technology that is key to us achieving our ambition of doubling digital growth over the medium term. The business remains strongly cash generative and is committed to delivering growth for the benefit of all stakeholders."

As of 1110 BST, Reach shares were up 7.67% at 337.0p.