Reach (RCH) H1 2025 earnings summary

Executive summary

• Digital revenue grew 1.8% year-over-year to £61.1m, while print revenue declined 4.8% to £194.1m, resulting in a 3.4% decrease in total revenue to £256.0m for the six months ending 30 June 2025.

• Adjusted operating profit increased to £44.8m with a margin of 17.5%, and cash conversion was strong at 102%.

• Strategic focus on audience connection, tech and AI acceleration, and revenue diversification, including subscriptions, affiliates, and ecommerce.

• U.S. expansion is profitable and progressing, with audience growth over 30% year-over-year and content/team growth across three brands.

• The business remains confident in meeting full-year market expectations despite macroeconomic and regulatory uncertainties.

Financial highlights

• Total revenue declined 3.4% year-over-year to £256m, mainly due to a 4.8% drop in print revenues; digital revenue grew 1.8% to £61.1m.

• Adjusted operating profit rose to £44.8m, with margin at 17.5%; adjusted EPS increased to 10.7p.

• Adjusted operating cash flow was £46m, with cash conversion at 102%.

• Net debt at period end was £26m, up from £12.3m year-over-year.

• Interim dividend maintained at 2.88p per share.

Outlook and guidance

• On track to deliver full-year results in line with market expectations, with digital revenue growth and print optimisation.

• Targeting 4-5% adjusted operating cost savings for the full year.

• Macro environment and regulatory developments remain uncertain and are being closely monitored.

• Ongoing pension contributions expected to be around £65m for the year, with capex in line with prior year.

• July's referral volumes were impacted by Google's core update, but full-year expectations remain unchanged.