Reach (LSE:RCH) reported revenue of £232.9m for the six months to 30 June, down from £256m a year earlier, as print and digital sales both declined.
Print revenue fell 8.3% to £178m, with circulation volumes down 22%, while digital revenue dropped to £54.2m as lower referral traffic from Google cut on-platform page views by 40%. Adjusted operating profit fell £1.8m to £43m, but the margin improved to 18.5% after a 10.3% cut in adjusted operating costs, ahead of the company's 5-6% target.
The statutory result swung to an operating loss of £43.5m, driven by a £36.1m non-cash impairment from the closure of two print sites, £21.7m of amortisation and £18.9m of restructuring costs.
Net debt stood at £47.5m, up from £26m a year earlier, with adjusted operating cash flow of £48.8m and cash conversion of 113%.
The board rebased the interim dividend to 1.44p per share, down from 2.88p, saying it wants more flexibility to fund organic investment.
"We are on track to deliver on market expectations for the year and remain confident in our ability to navigate uncertainty", said chief executive Piers North, adding the group would maintain financial discipline until pension deficit payments end in 2028.
Reach said full-year adjusted cost savings should broadly match the first half's pace, and it expects operating margins to hold at similar levels into 2027, though industry headwinds, including higher circulation declines, are expected to persist.
News Intelligence what this means for the company
Reach reported H1 revenue of £232.9m, down 9% year-on-year, with print circulation volumes falling 22% and Google referral traffic cuts reducing digital page views by 40%. Despite the top-line decline, the company maintained FY26 guidance and cut its interim dividend in half to 1.44p per share, prioritising financial flexibility and organic investment over shareholder returns.
Reach is executing a cost-reduction programme (10.3% cut in H1, ahead of its 5–6% target) that is protecting margins at 18.5% adjusted operating profit despite structural headwinds in print circulation and digital referral traffic. The dividend halving and guidance hold suggest management confidence in stabilising the business, but the company faces persistent industry headwinds and expects higher circulation declines to persist; the investment case hinges on whether cost discipline can offset ongoing revenue erosion.
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