London-based newspaper publisher, Reach PLC, reported a significant contraction in its third quarter revenue on Tuesday. The company experienced a 7.8% year-on-year decrease for the quarter ending September 24, 2023, largely driven by a 14% fall in digital revenue. This downturn was attributed to Meta Platform Inc.'s decision to de-prioritize news content on Facebook (NASDAQ:META), which led to a 15.2% drop in digital revenue and a 21% decline in page views. Additionally, the third quarter saw a comparatively smaller decline of 13.7%.
Print revenue also witnessed a dip of 5.8%, spurred by an 8.9% drop in advertising revenue and a 3.3% decline in circulation revenue. Despite these figures, circulation revenue increased by 0.4%, underscoring the resilience of print media in an overall challenging fiscal environment.
Despite these setbacks, Reach's CEO Jim Mullen (NASDAQ:MULN) emphasized the success of the company's data-driven strategy and audience diversification efforts under their Customer Value Strategy. These initiatives have been integral to their ongoing digital transformation and have led to data-driven revenue accounting for 42% of all digital revenue.
Amid challenging market conditions, Reach plc is implementing a resilience strategy focused on enhancing customer engagement, diversifying revenues, and driving operational efficiencies. The company does not foresee significant changes in the market environment and aims to reduce its full year operating costs by 5-6%.
Despite an overall group revenue drop and staffing cuts, Mullen stated that Reach's full year profit expectations remain steady, thanks to their data-driven strategy and audience diversification efforts.
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