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(Sharecast News) - British media company Reach reported a 5.4% decline in revenue in its annual results on Tuesday, to £568.6m.
The London-listed firm said print revenue fell 2% over the 53 weeks ended 31 December, to £438.8m, while digital revenue saw a sharper 15% decline, to £127.4m.
Despite the overall drop in revenue, Reach said it made progress in its digital transformation strategy.
Data-driven digital revenues, which are more resilient than open-market advertising, declined by 4% and now represented 43% of total digital earnings.
The focus on data and targeted advertising helped to mitigate the impact of declining page views across the digital sector.
Reach said it also successfully reduced its operating costs by 5.7%, maintaining its strong adjusted operating profit margin of 17%.
The company said it remained highly cash-generative, with an adjusted operating cash flow of £91.9m.
Looking ahead, Reach said it expected to deliver on market expectations for 2024.
The company said it remained focussed on its digital strategy and delivering efficiencies.
While referral traffic declines would impact the first quarter, Reach said it anticipated growing momentum in its digital business.
Cost reductions of 5% to 6% were planned for the full year.
Although the macroeconomic environment remained uncertain, Reach said the first two months of 2024 had shown robust performance.
"This year, we have successfully gained clarity on two significant long-term uncertainties in pension funding and historical legal Issues," said chief executive officer Jim Mullen.
"With the end of these issues in sight, we have significantly reduced our obligations and have a clear path forward for the business.
"The success of our strategy also came to the fore this year."
Mullen said that, despite the macroeconomic pressures, Reach had continued to build a stronger digital business with an increasing portion of much higher-yielding revenues, reducing its reliance on the open market.
"At the same time, we have expertly managed our print business, maintaining circulation revenues as well as delivering necessary cost and efficiency plans across the group.
"Together, all of these actions have put our business in a stronger position, so that we can continue to deliver great content to our audiences as well as returns for our shareholders."
At 1155 GMT, shares in Reach were up 13.87% at 67.7p.
Reporting by Josh White for Sharecast.com.
