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Investing.com -- Reach Plc (LON:RCH) reported a 3.7% decline in group revenue for the first quarter of 2025, driven by continued weakness in print advertising, despite modest growth in digital revenue, the company said in a trading update Thursday, sending its shares down over 3%.
Digital revenue rose 1.6% year over year, supported by a 9% increase in page views. However, softer digital advertising conditions, which accounted for 43% of digital revenues, tempered the overall growth in this segment.
“This is attributable to the strong prior year performance and a weaker local advertising market,” the company said in a statement.
Print revenue fell 5.1%, with circulation revenue down 4% and print advertising revenue declining sharply by 12.5%.
While circulation remains a stable source of income, supported by price adjustments, one-off specials and promotions, advertising continues to be pressured by falling print volumes.
Reach maintained its guidance to reduce operating costs by 4% to 5% for the full year and said it remains on track to meet market expectations. Analyst consensus compiled by the company forecasts full-year operating profit at £99 million.
“Whilst there are no immediate direct impacts from the recent tariff announcements we recognise the heightened levels of macroeconomic uncertainty,” the British newspaper, magazine and digital publisher added.
Reach’s national titles include the Mirror, Express, and Daily Star. The company also operates regional news outlets, such as the Manchester Evening News. Across its digital platforms, Reach attracts a monthly audience of 47 million users.
“While we can’t ignore the current market uncertainty, we’re pleased with the progress so far and see significant opportunity ahead,” chief executive Piers North said in the statement.