Reach, the British publisher behind the Daily Mirror, the Daily Express and dozens of local newspapers, said on Tuesday that its digital revenue remained under pressure in the third quarter, as traffic from Google continued to fall.
Total revenue dropped 14.1% in the quarter, while digital revenue fell by more than 20%, the company said in a trading update. Reach added that it remained cautious about digital revenue for the full year, pointing to industry-wide disruption in how readers reach news.
Key Takeaways
- Reach’s total revenue fell 14.1% in the third quarter; digital revenue dropped more than 20%.
- Shares fell as much as 4.3% to 44 pence in early trading before recovering.
- The publisher blamed industry-wide disruption as Google referral traffic keeps falling.
- Print advertising got a lift from the FIFA World Cup, and AI licensing deals helped off-platform revenue.
- Reach says full-year results remain on track to meet market expectations.
Shares dipped, then recovered
Shares in Reach fell as much as 4.3% to 44 pence in early trading in London, before paring losses and trading largely flat by mid-morning. The cautious tone on digital revenue weighed on the stock even as the company stood by its full-year outlook.
Why Google traffic matters
News publishers are navigating falling print readership and weaker referral traffic from platforms such as Google, as AI chatbots change how people find information. Google’s AI Overviews, which answer questions directly in search results, have drawn complaints from publishers over falling traffic and advertising revenue. As AI models grow more capable, more answers are delivered without a click through to the original article.
Print and licensing offered some relief
It was not all bad news. The company said print advertising was supported by the FIFA World Cup, and off-platform revenues benefited from AI licensing agreements — deals in which AI companies pay to use publishers’ content.
Restructuring continues
Reach said it is restructuring its business, including closing print sites, as it looks to reduce costs and offset pressure from declining print sales and weaker digital traffic.
Outlook unchanged
Despite the cautious tone on digital revenue, Reach said it remains on track to deliver full-year results in line with market expectations. The update shows how the same squeeze — fewer search clicks, more AI answers — is hitting newsrooms of every size, from national publishers to small independent sites.
Sources: Reuters; Channel News Asia.
