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Reach - Operating margins soar 4% to 16.8%

September 2024

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • RCH
  • Price:
  • 107.5p
England’s run to the Euro finals, the UK General Election and Taylor Swift’s Eras tour galvanised trading for newspaper group Reach in the first half.  Although revenue fell 5% to £265m (digital -1.3%, print -6.1%), digital revenues improved in Q2 by 6.7%. Aided by cost reduction ahead of the 5-6% previously guided (14% lower headcount, newsprint down a third) operating profit rose 23% to £44.5m. Impressively, operating margins jumped from 12.9% to 16.8%, while net debt was lower than expected at £12.3m thanks to two property disposals and favourable working capital movements. Some encouraging trends to note: first, high yielding data-driven revenues increased 13% year-on-year in Q2 and now represent 45% of digital revenue; second ...

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