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Also, annual report stated - Trading performance across the first two months of 2024 has been robust, with print advertising and digital performing well and we are on track with our full year outlook but we continue to operate in an uncertain macroeconomic environment.
So, should be hopefully decent.
Wel the divi's have been pretty constant past couple of years and the price is low . Lets hope they know a bit more than we do , fingers cross Mullen gets a kick up the rear
Lombard Odier doubled their stake from 5% to 10% yesterday. Trading update on May 2nd. id like to think they know what's going on.
Shorte has increased their commitment , why surely the only way if up from here now the divis are holding up let shope they go same way as a previous short when price when through the roof couple of years a go
Its profitable company run by a guy who hasn't a clue he should have stuck with the betting firm , rather than media because hes totally ideas vacant.
It's hard to tell if this company is not slowly sliding away out of business for it's current owners or steering itself to a future where current shareholders will still own and perhaps even benefit tremendously from it. The high dividend yield looks like a bit of a trap, though has held the last few years incredibly well.
Might even fall for the potential trap if it falls further. I'm always getting lured into what look like bargains. I used to own Johnston Press ( 100% loss), hence the trepidation.
Wonder if Reach would be better off without the Daily Mirror whose stories seem i'll matched to it's readership
Love it the Lunatic board , John 09 been there for years and always been into Recah as have I nad still think we should be 3.65 mark but at least the next 4 years will bring home the bacon in the meantime take the divis
John 09 pointed out on the lunatics board adv that £18 million is being saved next year from pension contributions. Excellent
Where I do think management deserve credit, and I guess this is what market approved of too, is how they've largely maintained margins, and been able to generate a fairly decent operating profit, despite pressures on revenues.
They must have achieved this by cutting costs quite dramatically, possibly down to the bone in some parts. This is where it's probably useful they have an unsentimental finance guy in charge, rather than one necessarily with a news/media focused background.
The awareness of overseeing a business in long term decline must help, so they have to watch costs closely even at best of times. But they could have easily cut nothing and hoped for the best like we see in so many companies, which could have easily resulted in a big loss.
Quite pleased with those results, plus the added benefit of greater clarity on future Pension contributions. So for me it is a deep breath and hold until 2028 when the money comes more to us shareholders as opposed to the pensions. Wondering what the divis will be in 2028.
Few things stood out to me.
Print revenue down only 2% is almost miraculous given wider industry decline in circulation. Will have been helped by them ramping up cover price but I'm sure this is above expectations. Digital revenue down 15% much more problematic given that's future of business. Google and Facebook algos working against news pinned as cause, so maybe not all Reach's fault here.
Maintaining divi means shareholders will be happy, imo it would be better if they kept that cash on hand and not effectively get into debt to pay it, given wider pressures.
Pension deficit very much still in place as I mentioned previously despite a few outlandish claims about surplus that were made on here. £60m cost for pensions annually shows what a millstone they are. Statutory operating profit would be £100m without them. Still that part shouldn't really be news for anyone, this business has been weighed down by them ever since Maxwell went for a swim and never came back.
Kept the Dividend in place, and closing 2 legacy issues in sight, Market seems to like it. I certainly do. GLA and with its link to amazon other whales hopefully will follow. Then there's always potential payments from FB and Alphabet legislated in law. Interesting times ahead.
That’s quite a swing
New management needed?
At this level it seems the market is expecting a profit warning with the results or something?
News Media Association chairman Danny Cammiade believes legislation will come this year in the UK which could enable Australia-style deals between publishers and big tech.
In Australia and Canada the threat of legislation has forced Google and others to hand over licensing fees worth more than £100m a year to publishers in each territory. In the larger UK publishing economy, such deals could be worth much more.
https://pressgazette.co.uk/publishers/news-media-association-danny-cammiade-government-big-tech-tindle/
The link wont open. good find though try this.
https://dailybusinessgroup.co.uk/2024/02/daily-record-owner-reach-sells-glasgow-hq/
So Reach have sold a massive site in Scotland and no mention of peice achieved. https://www.insider.co.uk/news/former-daily-record-headquarters-acquired-32176028. Any ideas?
No details of the Amazon deal have been disclosed ,
more to follow soon hopfully.
That would be music, they did say the wanted a newspaper.
Anyone any idea if the Amazon deal can be replicated say with S4 Tesco Sainsburys etc? And what's the amounts involved?
Unfortunately AI is a problem for a publisher like Reach. It lowers the barrier to entry for journalism and allows any idiot to put up endless stories online, that's already happening and the competitive field for audience attention is increasing dramatically. Them using AI themselves is akin to admitting defeat, the USP is gone, nobody will pay a premium to read AI articles.
The one hope that remains here is that a media group like Future with the same challenges decides a bit of consolidation is what the industry needs and makes an offer.
That's what annoys me about Mullen the Muppet , how long have we been shouting for something along those lines . Look at the New york Times they go get Wordle and boom subs go through the roof. March 5th will tell if there's no improvement in bottom line he has to go.
Being able to write stories cheap aint going to bring in more subs , might save bit of cash on salaries , hes needs to go , lets see what March 5th brings and if we're not moving forward on the bottom line he can sling his hook , maybe he could try Poundland
Https://pressgazette.co.uk/publishers/nationals/reach-ai-guten/
Said it 2 years ago, but still lacks the thrill element of monthly prizes, after all its a red top, people will pay more for the thrill of winning reasonable prizes, not toasters. Now inflation is turning down and hopefully interest rates to follow what a £5a month to be in the draw for cash prizes, which makes the difference.