Daily Mirror owner Reach PLC (LON:RCH) has announced ambitious plans to increase its registered online users sevenfold by the end of 2022.
The media group, which announced its full-year results for 2019 this morning, is set to give a strategy update to the City today at which it will reveal it is targeting having 7mln registered customers by the end of 2022 versus less than 1mln at the end of 2019.
“The group's growth strategy will ensure that through capturing customer insight and data, Reach continues to build an intelligent and relevant content business for the long term, ensuring a sustainable future for its trusted brands,” the company said.
2019 saw the company's revenue ease 3% to £702.5mln from £723.9mln in 2018, with the Express and Star newspapers making a full-year contribution for the first time since being acquired in the summer of 2018.
On a like-for-like (LFL) basis revenue fell by 5.3% year-on-year in 2018, versus a fall of 6.6% in 2018.
Digital revenues rose 13.2% on a LFL basis, with the second half seeing a 16.4% LFL increase in revenues from a year earlier.
Adjusted profit before tax edged up 6.1% to £150.6mln from £141.9mln the previous year. Statutory profit before tax, which includes so-called one-off items, was £120.9mln versus a loss in 2018 of £119.9mln.
The company's pension deficit remains a concern to the City but Reach is making progress in reducing it; the deficit narrowed by £52.7mln to £295.5mln and its size did not stop the company from proposing a 7.4% hike in the final dividend to 4.05p, making the full-year dividend 6.55p, up 6.7% from 2018's 6.14p.
The group said it has continued to perform in line with management's expectations since the year-end.
“2019 was a year of good operational and solid financial progress with record growth in audience numbers, consistently good cash generation and a strong balance sheet. This, along with unparalleled scale, underpins our drive to build an intelligent, relevant and trusted content business for the long term whilst continuing to deliver for our stakeholders,” said Jim Mullen, the chief executive officer of Reach.
“Content is at the heart of the new customer value strategy we are announcing today. We have an unmatched reach in UK media and will deepen our relationships via increased customer engagement. Through this, we see significant potential to accelerate the diversification of our digital revenue and capture more value to deliver on our sustainable digital growth ambitions,” he added.
Shares in Reach were up 3.1% at 180p in early deals.