Shares in Reach PLC (LSE:RCH) fell 6.5% after its chief executive Jim Mullen warned that the macro-economic ‘headwinds’ encountered last year 'would likely continue' in 2023.
His prediction accompanied full-year results from the publisher of the Daily Mirror and Express newspapers which showed inflation pressures resulted in a £40mln increase in costs in 2022.
Operating profits from the company, which also owns a stable of regional newspapers, dropped by 27% to £106.1mln in the 12 months ended December 31.
Revenue fell 2.3% year-on-year £601.4mln as advertising income began to weaken.
Mullen told investors: “We expect uncertain macroeconomic conditions to persist during 2023 but, as shown during the pandemic, we are effective at managing them, with an action plan in place to help mitigate the current headwinds.
“We will continue to invest in areas which support digital expansion, such as the US, where we'll leverage our scale and apply the proven Customer Value Strategy playbook which is positioning us favourably to benefit when economic conditions improve."
Reach shares dropped 5.89p to 84.76p in the first 20 minutes of trade.