Shares of Reach PLC (LON: RCH), which owns the Daily Express and the Daily Mirror, today surged 23.6% after the company released its half-year results, which were better than expected.
Although the company’s revenues fell 17.5% on an annualised basis to £290.8 million during the six months ended June 28, the company recorded a £25.2 million pretax profit, a 57% drop from last year’s £58.2 million profit.
The company told investors that its current performance was way ahead of 2020 expectations, but it remains cautious about the likely negative impact of the coronavirus pandemic.
The company’s revenues from its digital platforms were much more resilient given that they only saw a 1.0% decline, which is quite impressive.
Jim Mullen, Reach Plc’s CEO said: “We have seen a strong recovery in the digital advertising market since the worst impacts of Covid-19 in April which has driven a return to healthy digital revenue growth since July, assisted by increased customer engagement and loyalty. This illustrates the significant potential of the customer value strategy as our websites, apps and newsletters attract increased page views from our scale audience, helping to drive forward digital revenues. Circulation sales have also stabilised and shown a gradual recovery during Q2 and Q3.”
Reach Plc share price
Reach Plc shares today surged 23.6% to trade at 80p having closed last week’s session trading at 64.7p