Last checked at (Sharecast News) - Daily Mirror and Daily Express publisher Reach said it was axing 550 jobs to slash costs as the coronavirus pandemic hammered advertising revenues.
The company said the move to cut 12% of its workforce would lead to a one-off cost of £20m but would help it save £35m a year.
Chief executive Jim Mullen said an increase in online readership during the lockdown had not led to commensurate increases in digital revenue.
Revenue in the second quarter to June fell by 27.5%, although it improved slightly in June, when sales were down by 23.9%.
"Circulation remains significantly below pre-Covid-19 levels with local advertising continuing to be challenging," Reach said.
It added that group revenue to 28 June was down 17.5%, benefiting from the good start to the year before the pandemic began impacting the business in mid-March.
Reach reported "modest but encouraging improvements" in circulation and national digital revenue as lockdown restrictions eased. Group revenue fell 23.9% in June compared with 30.5% in April. Digital revenue fell 4.9% in June compared a 22.5% slump seen in April when the impact of Covid-19 was at its worst.
Print revenue in June was down 26.7% year on year compared with the 31.8% decline seen in April, Reach said.
31 Aug 2021 09:12
Liberum says Reach at an inflection point, starts at 'buy'
(Sharecast News) - Liberum initiated coverage of newspaper and magazine publisher Reach on Tuesday with a 'buy' rating and 475p price target as it said the shares have done well in recent months, but are at the start of the next growth phase.
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