Last checked at 8 Oct 2018 07:00
8 October 2018
Reach plc (the 'Group')
Trading update for the third quarter of 2018
The Board remains confident that performance for the year will be in line with market expectations*.
Revenue trends
Group revenue in the third quarter grew by 21% reflecting the acquisition of Express & Star. On a like for like** basis Group revenue in the third quarter fell by 7%. Circulation and Publishing print advertising revenue fell by 4% and 20% respectively. Publishing digital revenue grew by 7% with display and transactional revenue growing by 12%.
Express & Star
Good progress has been made on the integration of Express & Star with a number of initiatives already in progress. We remain on track to deliver integration savings of £2 million in 2018 and at least £20 million per annum by 2020.
Disposal of The Communicator Corporation Limited
On 25 September 2018, the Group divested its 100% interest in The Communicator Corporation Limited ('the Business'), an email marketing business which was reported in the Specialist Digital division. The Business was sold for a total consideration of £7.6 million of which £6.8 million in cash was received on completion and the remaining £0.8 million will be payable in March 2020.
In 2017, the Business delivered revenue and adjusted operating profit of £4.9 million and £0.9 million respectively.
Simon Fox, Chief Executive, commented:
"I am pleased with the progress being made on the integration of Express & Star and remain confident that we will deliver at least £20 million of annual synergy savings by 2020. Our continued focus on tightly managing costs and driving digital revenue continues to provide confidence that performance for the year will be in line with market expectations."
Enquiries
Reach | ||
Simon Fox, Chief Executive Vijay Vaghela, Group Finance Director | 020 7293 3553 | |
Brunswick | ||
Nick Cosgrove, Partner | 020 7404 5959 | |
Will Medvei, Director | ||
The statement on future performance is given as at the date of this announcement and is subject to a number of risks and uncertainties and actual results and events could differ materially from those currently being anticipated as reflected in the statement. The Company undertakes no obligation to update this forward-looking statement.
* The market consensus range for adjusted PBT for the 52 weeks ended 30 December 2018 is £132.1 million to £133.9 million. This range includes estimates from analysts that have updated forecasts since our interim results announcement on 30 July 2018. Adjusted PBT excludes operating adjusted items (impairment of goodwill and other intangible assets, restructuring charges in respect of cost reduction measures, provision for historical legal issues, pension administrative expenses, amortisation of intangible assets and transaction costs in relation to the acquisition of Express & Star) and the pension finance charge.
** The like for like trends for 2018 include Express & Star as if it had been owned from the beginning of 2017 and exclude from the 2017 comparative the impact of portfolio changes.