By Christian Moess Laursen
Reach said its third-quarter revenue dropped on lower referral volumes following Facebook’s deprioritization of news content, but that it still backs it full-year profit guidance.
The U.K. media company said Tuesday that revenue dropped 7.8% in the third quarter to Sept. 24, hurt by lower referral traffic across the sector, particularly following Facebook’s deprioritization of news content, driving declines in page view for publishers.
Digital revenue fell 14%, while print revenue slid 5.8% in the period, and year-on-year page views declined 21%.
Reach reaffirmed its full-year profit expectations of meeting market views, which–based on a company-compiled consensus–sees adjusted operating profit of 95.0 million pounds ($116.3 million).
Reach said it will be posting a circular to shareholders regarding a proposed capital reduction of GBP605.4 million, which won’t involve any payment to shareholders but create additional distributable reserves.
Write to Christian Moess Laursen at [email protected]
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