Reach PLC (LSE:RCH) said revenue is currently ahead of market expectations for the full year, as the strong growth in digital revenue continues.
But the newspaper publisher, whose titles include the Mirror, the Express and the Daily Star, cautioned that inflation is pushing up the cost of print production.
Reach said revenue was up 1.2% overall in the period from 28 June to 21 November 2021, with digital surging 17.2% and print declining by 3.5%.
On a two-year basis, digital revenue rose by 39% for the year-to-date, with average page views growing by 30%.
The full-year outlook for print has strengthened, driven by improving circulation, Reach said.
Customer registrations rose to over 8mln at the end of the period from 6.7mln at end of July.
"Strategic delivery is transforming our prospects for growth and we're progressing towards our goal of doubling digital revenue over the medium term,” said Reach chief executive Jim Mullen.
“Registration numbers are strong, and advertisers are responding to our expanded portfolio of data-led products. Together with our efficient operating model, this is enabling us to invest further in digital content as we build a modern and inclusive media business."
The company said revenue mix and cost savings from last year's transformation programme are supporting a stronger profit margin and increased strategic investment, particularly in expanding digital content.
It said it has added 400 digital editorial roles to its national and local titles so far this year.
Commenting on inflation, Reach said it has started to notice an increase in the cost of print production, particularly for energy and newsprint. "With the longer-term effect on the cost base still emerging, we are closely monitoring developments and will continue to prioritise efficiencies to mitigate the impact," it said.
The company said it has yet to reach agreement with regard to the triennial review of its pension commitments but continues to hold discussions. It remains committed to its objective of achieving funding of all schemes as agreed in its 2016 triennial review.
Reach said consensus market expectations shows revenue of £604.1mln and adjusted operating profit of £145.8mln for 2021.
Shares fell 4.14% to 289.50p in morning trade.