Daily Mirror owner Reach PLC (LSE:RCH) saw its shares pop 15% after it said it now expects to spend around £20 million to settle claims surrounding the phone hacking scandal.
In December, a High Court ruled in favour of Prince Harry, who had issued claims against the paper over the publication of 33 articles dated between 1996 and 2009 which were found to be the product of phone hacking or other unlawful information gathering.
However, the judge revealed any cases after October 2020 are "now likely to be dismissed other than where exceptional circumstances apply".
Reach says "this means that a significant number of outstanding claims can be resolved, and this should largely bring an end to future claims."
Investors will have also welcomed Reach's expectations to see a ramp-up in demand for its digital offerings in 2024.
The owner of regional newspapers like the Liverpool Echo and Belfast Live said it was building a more efficient online business which would begin showing resilient growth this year.
Operating costs are expected to reduce by 5-6% as a result of the digital shift, with the group revealing the first two months of trading are already on track to meet full-year guidance despite macro headwinds.
Jim Mullen, chief executive, said: “Despite the macroeconomic pressures, we have continued to build a stronger digital business with an increasing portion of much higher yielding revenues, reducing our reliance on the open market.
“At the same time, we have expertly managed our print business, maintaining circulation revenues as well as delivering necessary cost and efficiency plans across the Group.”
The share price lift comes despite Reach’s 2023 performance seeing revenues slip by under 5% to £568 million while operating profits fell 9% to £96.5 million.
An annual dividend of 7.34p per share was maintained across from 2022, despite the group shifting from net cash of more than £25 million to net debts of £10 million at the end of 2023.
Reach also addressed issues surrounding its pension schemes, with a pathway to fully fund them having planned until 2028 when payments will drop by around £40 million.
Added information about phone hacking