Reach plc (LSE:RCH) reported a 3.7% decline in full-year 2025 revenue to £518.4 million, reflecting a 4.6% drop in print income and a 0.9% dip in digital revenues. Despite the top-line pressure, adjusted operating profit increased 2.4% to £104.7 million, with margins improving to 20.2% as a result of cost-saving measures.
A substantial non-cash impairment charge resulted in a statutory operating loss of £160.1 million. However, underlying cash generation remained solid, net debt was contained at £34.9 million and the company maintained its dividend at 7.34p per share.
Management is advancing a three-pronged strategy focused on deepening audience engagement, expanding the use of AI and technology, and broadening revenue streams. Initiatives include six new digital subscription launches and the expansion of video content franchises, alongside growth in ecommerce and other diversified income channels.
After the year end, Reach announced the closure of two print sites to reduce operating costs and lower risk exposure. The group also completed a pension buy-in arrangement that lowers future contribution requirements. While acknowledging softer search referral traffic and ongoing macroeconomic headwinds, management reiterated that it expects to meet 2026 market forecasts, supported by a planned 5–6% reduction in adjusted operating costs.
From a valuation standpoint, Reach stands out with a low price-to-earnings ratio and relatively high dividend yield, which may appeal to value and income-focused investors. Nonetheless, revenue contraction and variability in cash flows present ongoing challenges. Technical indicators currently point to bearish momentum, potentially limiting near-term share price performance.
More about Reach plc
Reach plc is the largest commercial news publisher across the UK and Ireland, operating a broad portfolio of national and regional titles in both print and digital formats. The company generates revenue from advertising and circulation, while increasingly focusing on digital growth areas such as subscriptions, video, ecommerce and branded content as it adapts to structural changes in media consumption and online referral patterns.
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