Slide 1: Preliminary Results 2024
PRELIMINARY RESULTS 2024. Full Year Results Presentation | 4 March 2025
Slide 2: Disclaimer
Disclaimer. This presentation has been prepared by Reach plc (the “Company”) Forward-looking statements speak only as of the date of such and its subsidiaries or associated companies or its or their affiliates statements reflecting the knowledge and information available and, (the “Group”) in connec
Slide 3: Jim Mullen, Chief Executive Officer
Jim Mullen Chief Executive Officer Preliminary results | Jim Mullen FY Results | 4 March 2025
Slide 4: 2024 Summary
Financial Strategic Summary review update 2024 - Delivery ahead of market expectations. 2024 Summary. Reach teams delivering our plan. ● Returned digital to growth, +2% full year, +9% Q4 LFL ● Print circulation (3)% LFL and print advertising (14)% LFL both outperforming structural volume decline (17
Slide 5: Darren Fisher, Chief Financial Officer
Darren Fisher Chief Financial Officer Preliminary results | Darren Fisher FY Results | 4 March 2025
Slide 6: Financial performance
Summary Financial Strategic review update Summary - Financial performance. Revenue Adj. operating Adj. operating Adj. operating Adj. EPS per profit margin cash flow share £539m Revenu £102m 19.0% £107m 25.3p e. £569m FY23: FY23: £97m FY23: 17.0% FY23: £92m FY23: 21.8p Preliminary results | Financial
Slide 7: FY24 Financial summary
Summary Financial Strategic review update FY24 Financial summary. Delivery ahead of market expectations Var % Adjusted Results FY24 £m FY23 £m Var £m Var % LFL* Digital 130.0 127.4 2.6 2.1 2.3 • Lower operating costs from the Print 406.7 438.8 (32.1) (7.3) (6.0) restructure undertaken at the end of
Slide 8: Revenue
Summary Financial Strategic review update Revenue. Group revenue decline impacted by the additional week in the comparative 2% (5)% (15)% (14)% (24)% (5)% • Group revenue down 4% LFL • Digital assets optimised with yield increased 19% - Revenue per thousand pages • Print circulation resilient, £569m
Slide 9: Digital revenue
Summary Financial Strategic review update Digital revenue. Strategy driving momentum - yield up 19% +7% (2)% (11.9)% Data-driven revenues +7% £130m £23m £127m • Data-driven 9x value versus open market • Strong year-on-year growth in direct £55m advertising, partnerships, ecommerce and £59m affiliate
Slide 10: Operating costs well managed
Summary Financial Strategic review update Operating costs well managed. Delivering sustainable levels of profitability • Operating costs declined 6.5% LFL £475m £439m • Labour costs declined 3.0% LFL , due to the restructuring implemented at the £23m end of 2023 £223m £216m • Newsprint costs have re
Slide 11: Profit bridge
Summary Financial Strategic review update Profit bridge. Continued to selectively invest £35m £(11)m £(2)m £(30)m £5m £13m £xm £97m £102m Preliminary results | Profit FY23 Revenue Inflation Efficiencies Investment Other FY24 mix & volume Reach plc | FY24 11
Slide 12: 2024 Use of cash
Summary Financial Strategic review update 2024 Use of cash. Completed refinancing of £145m RCF facility Per agreed funding schedule £(59)m £126m Settlement of claims £(23)m Includes £7m lease payments, £4m £(9)m vacant property costs £(17)m & £4m net interest Preliminary results | Cash £(10)m £(12)m
Slide 13: Capital allocation
Summary Financial Strategic review update Capital allocation. Profitability and cash are priorities as we continue to reduce our financial obligations Resilient print Preliminary results | Capital allocation profits, sustainable cash generation and strong balance sheet Organic Pension Dividends for
Slide 14: Outlook in line with market expectations
Summary Financial Strategic review update Outlook in line with market expectations. Full year 2025 Revenue: Expect the macro environment to remain uncertain Digital revenue growth Costs: 4-5% reduction in total operating costs NI changes increase labour costs c.2% annualised basis Depreciation: Expe
Slide 15: Jim Mullen, Chief Executive Officer
Jim Mullen Chief Executive Officer Preliminary results | Jim Mullen FY Results | 4 March 2025
Slide 16: Plan delivery
Summary Financial Strategic review update Plan delivery. Executing and delivering our Customer Value Strategy Outlook FY24. Extract FY23 - presented Mar 24 FY24 Delivery. Clear strategy which is working RPM growth 19%, Operating margin 19% Increased mix of higher quality Data-driven revenues represe
Slide 17: Customer value strategy
Summary Financial Strategic review update Customer value strategy. Since inception CVS driving value creation despite the challenging market backdrop FB Referral • Divergence between RPMs rebased (2019 = 100) the growing data-driven RPM and Preliminary results | Strategic update declining audience A
Slide 18: Improving yield performance
Summary Financial Strategic review update Improving yield performance. Total revenues per 1000 page views increased 19% +19% YOY Customer Value Strategy (CVS) +11% YOY (3)% YOY • Data-driven revenues yield 9x open market • Ecommerce & affiliates now represent 8% RPM Audience variable (AV) revenues P
Slide 19: Quality & sizeable digital asset
Summary Financial Strategic review update Quality & sizeable digital asset. UK #1 Audience ranking in UK & Ireland ● 34m digital audience, 69% of US UK total ● 6th largest digital asset with ● 30m digital audience >10% of over 120 brands US total * ● 9m sign-ups ● Audience 9% growth YOY ● 3m WhatsAp
Slide 20: Driving higher level of engagement
Summary Financial Strategic review update Driving higher level of engagement. Reaching new audiences ● Loyalty statistics ● Referral platforms ○ Reach has grown page views per visit by +8%YOY* ○ Google core updates increasing in frequency 4 x 2024 ○ 9m direct device sign-ups, activity increasing +26
Slide 21: Improved organisational efficiency
Summary Financial Strategic review update Improved organisational efficiency. Use of AI tools and resource allocation How we are using AI Organisational change Content Hub, Distribution Hub & Reach Studio Automated Contextual house style ad targeting tailoring Automated = page across the value 9X Re
Slide 22: Continued revenue diversification
Summary Financial Strategic review update Continued revenue diversification. Ecommerce and affiliates continue to drive growth Ecommerce Affiliates B2B - Mantis Publishers tool kit. Preliminary results | Strategic update Built by a publisher for publishers Revenue growth 39% YOY Revenue growth 51% Y
Slide 23: Case study developing our advertising offer
Summary Financial Strategic review update Case study developing our advertising offer. More effective multi platform advertising Tesco Allwyn Sky Preliminary results | Strategic update “Top up” campaign utilising geo data Largest direct social buy from EFL launch for Sky - and in-house ad tech - Man
Slide 24: Reliable print revenue funding digital transformation
Summary Financial Strategic review update Reliable print revenue funding digital transformation. Industry-leading operational expertise maximising revenue and reader value • Leading industry print experts and operators • Managing the reader value exchange • Cover price increases average 15% balanced
Slide 25: Editorial delivering brilliant, multi-platform content
Summary Financial Strategic review update Editorial delivering brilliant, multi-platform content. Telling the stories that matter and championing free-to-access news online Enlighten. Empower. Entertain. Preliminary results | Strategic update Reach plc | FY24 25
Slide 26: Priorities
Summary Financial Strategic review update Summary. Priorities. ● Continue our Customer Value Strategy ● Audience growth and further revenue diversification ● Growing digital business ● Print revenues remain reliable Preliminary results | Summary ● Continued focus on costs and efficiencies ● Financia
Slide 27: Appendix
Preliminary results | Appendix Appendix
Slide 28: Definitions
Definitions. Metric Description Adjusted operating profit Operating profit before adjusting items Adjusting Items Items are adjusted on the basis that they distort the underlying performance of the business where they relate to material items that can recur or relate to historical liabilities. Other
Slide 29: Reporting periods
Reporting periods Like for like - 52 week. 53 week LFL - 52 week 52 calendar FY24 period FY23 period FY23 % % Digital revenue 2.1 2.3 • Like-for-like has been adjusted to a 52 week comparative to the 52 Circulation (4.5) (3.0) weeks ending 31 December 2023 Advertising (14.6) (13.5) • Additional week
Slide 30: Group income statement
Group income statement. ● Operating Statutory Operating Pension Adjusted Adjusted adjusted items results adjusted items finance interest results £m £m charge £m £m £m relates to the items charged or FY24 credited to Revenue 538.6 - - 538.6 statutory not Operating profit 74.2 28.1 - 102.3 adjusted Pr
Slide 31: Profit to cash measure
Profit to cash measure. Profit to cash FY24 FY23 ● Depreciation & amortisation in £m £m line with prior year Adj. Operating Profit 102.3 96.5 Depreciation & amortisation 19.6 21.6 ● Working capital impacted by payment and receipt timing Adj. EBITDA 121.9 118.1 differences Working capital movement 4.
Slide 32: Operating adjusted items
Operating adjusted items. FY24 FY23 £m £m Provision for Historical Legal issues - 20.2 Restructuring charges (8.0) (26.9) Pension administration expenses and past service costs (9.7) (5.5) Property-related items 1.1 (8.0) Other items (10.2) (9.3) Preliminary results | Appendix Impairment of sublease
Slide 33: Provisions
Provisions. Share-base Historical Property Restructuring Other Total d payments legal issues £m £m £m £m £m £m As at 31 December 2023 (0.5) (19.1) (12.7) (18.2) (2.2) (52.7) Charged to income statement (0.3) (1.3) (8.0) - (0.9) (10.5) Utilisation of provision 0.1 2.0 16.5 9.1 0.2 27.9 As at 31 Decem
Slide 34: Pensions
Pensions. ● The estimated committed FY24 FY23 Change £m £m £m pension payments are based on the current funding Fair value of scheme assets 1,571.0 1,733.0 (162.0) schedule and are subject to Present value of scheme liabilities (1,616.3) (1,835.6) 219.3 future valuations and movements in the underly
Slide 35: Our investment case
Our investment case. 1 3 5 profitable Highly 7 with strong cash Great content Developing generation and delivered at our audience robust balance Clear capital scale and diversifying sheet allocation 120+ our revenue trusted brands Operating margin 19% framework Non-advertising net debt £(14)m revenu