Reach sales slide as online views dented by Google AI answers

Daily Mirror and Daily Express publisher Reach has revealed a further decline in sales after a sharp fall in online views directed through Google.

The newspaper publisher said page views on its platforms dived by 40% for the past half-year amid the increased use of AI answers and overviews on search engines.

Shares in London-based Reach plunged by almost a quarter in early trading on Wednesday as a result.

The group, which also publishes the Daily Star, revealed that total revenues dropped by 9% to £232.9 million for the six months to June 30, compared with a year earlier.

It said digital revenues dropped to £54.2 million from £61.1 million a year earlier, after it was hit by a “lower volume” of referrals from online platforms, with this mainly linked to Google.

Indirect revenues, which are particularly sensitive to these volumes, therefore fell 16.2% year-on-year.

Boss Piers North said the group is looking to create “greater independence from referral traffic” through the growth of subscription and video operations.

He added: “Our future will be less about volume and more about original content, distinctive brands and securing better returns.”

The company, which also owns a host of regional publications, said print revenues fell by 8.3% to £178 million for the first half of the year.

It came as the decline in print sales accelerated in the latest quarter, despite advertising revenues being boosted by the World Cup.

Reach held firm on its targets for the rest of this year but said it expects headwinds in the sector to “persist” into 2027, including an increased fall in circulation volumes.

The group also reported that adjusted pre-tax profits dipped by 5% to £40.3 million for the half.

However, it swung to a loss on a statutory basis after booking a £36.1 million non-cash impairment linked to print sites, a £21.7 million hit from the amortisation on publishing rights and £14.7 million linked to a recent restructuring.

Last September, the group said it planned to cut more than 320 journalism jobs amid efforts to turnaround its financial performance.

Mr North, chief executive of Reach, added: “We are on track to deliver on market expectations for the year and remain confident in our ability to navigate uncertainty.

“We will maintain financial discipline and strategic focus through this period, until our pension deficit payments are due to end in 2028.”