(Alliance News) - Reach PLC on Monday said it swung to profit in the first half of its current financial year, but revenue slipped on reduced sales volumes.
The newspaper, magazine and digital publisher also said Simon Fox will be stepping down as chief executive on August 16.
Reach said Jim Mullen - who was most recently was chief executive of Ladbrokes Coral PLC, a part of GVC Holdings PLC - will succeed Fox.
"I would like to thank Simon for the great job he has done over the past seven years," said Reach Chair Nick Prettejohn. "We have an excellent successor in Jim and I am pleased to have a seamless transition."
Turning back to results, Reach swung to pretax profit of GBP58.2 million in the 26 weeks to the end of June, compared to GBP113.5 million loss made during the same period last year.
Distribution costs fell in the first half to GBP27.6 million from GBP33.8 million last year, while administrative expenses were reduced to GBP70.2 million from GBP244.6 million. In 2018, administrative expenses included a non-cash impairment of goodwill and publishing rights and titles of GBP150.0 million, with no such charge reported for the first half of 2019.
Revenue, meanwhile, declined slightly to GBP352.6 million from GBP353.8 million year-on-year. Like-for-like revenue dropped by 6.3%.
The like-for-like decline in circulation revenue saw volume declines partially mitigated by cover price increases and increased availability, the company explained. Reach also said its regional Sunday volumes were impacted by the launch of MEN on Sunday and the benefit the Sunday Echo received following Liverpool football club Champions League victory in June.
The company also noted that the like-for-like decline in advertising revenue reflects the impact of the reduction in Health Lottery advertising and the absence of the World Cup which was in June in the prior year.
Reach declared an interim dividend of 2.50 pence per share, up 5.5% on the prior year's payout.
Looking ahead, the company said it anticipates trading for the year to be in line with market expectations.
"I am pleased with our robust performance in the first half of the year and with the strengthening of our digital audience and revenue growth in quarter two," said outgoing CEO Fox.
"Our first half performance provides a solid platform from which to continue to deliver upon the three pillars of our strategy: Optimise, Grow and Commercialise," added Fox.
Reach shares were trading 3.4% higher on Monday in London at 88.51 pence each.
Reach Plc (RCH)
