Half Year 2024 Reach PLC Earnings Call Transcript
Key Points
- Digital yield grew by 32% in Q2, indicating strong performance in digital advertising.
- Data-driven revenues now account for 45% of overall digital revenue, up from 41% last year.
- Operating costs were reduced by 9.3%, reflecting effective cost management strategies.
- Adjusted operating profit increased by GBP8 million to GBP44 million, with an operating profit margin of 17%.
- Cash generation was strong, with a cash conversion rate of 130%, indicating robust financial health.
- Total group revenue declined by 5%, with print revenue falling by 6%.
- Digital revenues were broadly flat, down by 1.3%, indicating challenges in achieving significant growth.
- Headwinds on page views due to changes in search algorithms and tech platform decisions continue to impact performance.
- Print advertising revenue declined by 12%, reflecting ongoing structural challenges in the print segment.
- Net debt stood at GBP12 million, despite strong cash generation, indicating ongoing financial obligations.
Hello everyone and thank you for joining us here today for the Reach plc 2024 half year results presentation. It's good to see many of you face-to-face. And welcome to those joining us on the webcast.
I'm joined by our CFO, Darren Fisher, who will take you through the financials and then I'll give a strategic update and take you through the progress that we have made in 2024. We will both answer any of your questions at the end and I'll assume that you've read our disclaimer.
When we spoke in March at our full year results, I said that 2023 has been a big year for the company. Our business had demonstrated the resilience underpinned by a well-managed print product and the success of our customer value strategy. These strengths had helped us deliver in what was an uncertain macroeconomic environment and I'm pleased to be able to stand here today and say that operationally and strategically, Reach continues to be a business that is building an ever-growing understanding of its audiences, has a strong and growing
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