Reach PLC (LSE:RCH) the publisher of the red-top Daily Mirror’s print and online editions, is sticking to its full-year adjusted profit guidance of £97.6 million despite a 5.2% chop to group-wide revenues in the first half of 2024.
Yet reduced operating costs, primarily by way of a 14% headcount reduction over the past 12 months, underpinned the publisher’s improved profit margins in the period.
Reach’s adjusted operating profit increased 23.1% to £36.1 million in the first half, leaving the legwork to achieve guidance weighted to the second half.
This could prove a challenge as Reach noted in today’s trading update that “operating profits will be more equally weighted between the first and second half of the year”.
Elevated advertising spend from major events like the European Football Championship finals and the Paris Olympics could help Reach achieve these targets.
“We continue to build a stronger, more resilient business and are on track with our plans for the year," stated chief executive Jim Mullen
Reach declared a flat first-half dividend of 2.88p per share, matching the dividend in the first half of 2023.