Reach PLC (LSE:RCH) shares fell 4% after the publisher warned of an uncertain economic backdrop and 'dynamic' media backdrop.
Despite these challenges, the owner of the Mirror and Express national news titles, reported results slightly ahead of forecasts, with strong digital growth offsetting ongoing print declines.
Digital revenues rose 2.1% for the year and surged 8.6% in the final quarter as Reach’s customer value strategy drove better engagement and higher ad yields.
Print revenues fell 7.3%, though circulation remained stable. Cost-cutting helped boost operating profit by 6%, with margins improving to 19%.
CEO Jim Mullen said the company is navigating industry changes while keeping a tight grip on costs. “Our good performance in 2024 saw our digital business move back to growth, driven by our Customer Value Strategy and diversification into areas like affiliates and e-commerce,” he said.
Trading in early 2025 has been encouraging, with audience numbers growing. Reach expects to meet market expectations for the full year, despite ongoing macroeconomic uncertainty.
In early trading, the stock was off 3.6p at 83p. However, the past year has seen the share price rise around 40%.
Broker Panmure Liberum told investors: "[Reach's] valuation is already factoring in a tough outlook, so we find ourselves patiently looking for macro stability as a potential catalyst."
It says 'buy' up to a target price of 234p.