(Alliance News) - Reach PLC on Friday said it expects to beat market expectations for 2020 after a "record digital revenue performance".
Shares in Reach, which owns the Daily Mirror, Daily Star and Daily Express brands, were up 19% in London on Friday at 209.44 pence.
The newspaper, magazine and digital publisher now expects its 2020 underlying operating profit to beat market expectations, in the GBP130 million to GBP135 million range.
This was attributed to its "record digital revenue performance" with digital revenue up 25% in the final quarter compared to the year before, having risen 13% year-on-year in the third.
Although print circulation sales were lower year-on-year, down 12% in the fourth quarter, this was still better than a 14% decline in the third quarter.
Overall revenue fell 10% in the fourth quarter from the year before, having fallen 15% in the third quarter.
In December, Reach hit its 5 million online customer registrations milestone and completed development of its proprietary customer insight platform, Reach ID.
These form part of its customer value strategy, which aims to "drive new product innovations and to grow revenue through more targeted brand opportunities and commercial partnerships", though the use of enhanced data and market insights.
In January, Reach plans to launch new sites that will cover Bedfordshire and Buckinghamshire, and will expand its MyLondon editorial team.
Chief Executive Officer Jim Mullen said: "It is a testament to our people that Reach has not only dealt with the unique challenges 2020 has presented, but we have accelerated our strategy and we are ahead of where we expected to be. The new Covid-19 restrictions bring macro-economic uncertainty, but the changes made in the business during 2020 to develop a new, more efficient operating model put us in a strong competitive position."
By Anna Farley; annafarley@alliancenews.com
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Reach Plc (RCH)