Reach (RCH) H2 2025 earnings summary

Executive summary

• Delivered strong financial results in 2025, with profit growth and an adjusted operating margin over 20%.

• Achieved progress on strategic priorities: growth acceleration, capital/resource reallocation, and operational efficiencies.

• Strategic focus on digital growth, video, AI integration, and revenue diversification through subscriptions and e-commerce.

• Completed a complex transformation program, including restructuring and consolidation of print operations, with closure of Saltire and Watford print sites for financial and operational benefits.

• Adjusted operating profit exceeded market expectations.

Financial highlights

• Revenue declined 3.7% year-over-year to £518.4m; digital revenue down 0.9% to £128.9m; print revenue down 4.6% to £388.1m.

• Adjusted operating profit rose to £104.7m (up £2.4m), with margin improving to 20.2%.

• Adjusted EPS increased to 26.8p from 25.3p; dividend per share maintained at 7.34p.

• Cash conversion remained strong at 99%; net debt at year-end was £34.9m.

• Operating costs reduced by 5.2% year-over-year, ahead of target.

Outlook and guidance

• On track to deliver in line with market expectations for 2026, with consensus adjusted operating profit at £96.4m.

• Expect continued volatility in referral traffic, especially from Google and on-platform sources.

• Targeting a 5%-6% reduction in total operating costs in 2026, supported by print consolidation.

• Pension contributions to reduce by £9 million in 2026/27 due to TRBS buy-in; payments to reduce to £59m in 2026.

• Capital expenditure expected to remain similar to 2025; no significant property disposals planned for 2026.