Reach PLC (LSE:RCH) shares climbed almost 3% on Tuesday after the newspaper publisher said full-year profit should meet expectations despite a fall in revenue over the third quarter.
Adjusted operating profit for the year should be in line with consensus estimates for £97.7 million, Reach said in an update.
This was despite a 2.5% fall in revenue over the three months to September, driven by lower circulation and advertising turnover from printed newspapers.
Reach noted advertisers had brought forward spending to cover the likes of the European Football Championships, while price hikes helped to offset volume declines.
Digital revenue improved by 2.5% in the meantime, Reach said, reflecting improved yields as page views also fell by 5.0%.
“Our customer value strategy continues to drive revenue diversification and has helped us navigate the dynamic media backdrop,” chief executive Jim Mullen commented.
“We continue to make good progress with our investments including our US expansion, the re-platforming of our websites and our in-house ad tech platform.”
Reach added it expected further digital growth over the final three months of the year, while plans to cut costs by between 5% and 6% were progressing ahead of schedule.
“While the quarter saw big news events such as the Olympics and developments in the US elections, it also highlighted the importance of trusted news sources to responsibly report on tragic events such as in Southport, especially in the wake of disinformation and social unrest,” Mullen added.
Shares climbed 2.9% on Tuesday.