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Daily Mirror and Daily Express newspaper publisher Reach booked a 57% drop in first-half profit as the pandemic hit sales already under pressure from a structural migration of readers online.
Pre-tax profit for the six months through 28 June fell to £25.2m, down from £58.2m on-year, as revenue slumped 18% to £290.8m.
Despite the sharp fall in profit, Reach said it was currently performing 'materially ahead' of market expectations for the full year.
It added, though, that management remained 'fully aware that Covid-19 still represents a significant macro-economic challenge to the UK economy, with the potential for subsequent negative impacts on the business'.
Reach's bottom line with hit by £28.9m of provisions for historical legal and contract issues. Adjusted pre-tax profit fell 23% to £53.5m, with margins benefiting from cost cutting.
Reach did not declare an interim dividend, citing Covid-19 uncertainty. It did, however, recommend a proposed bonus issue to shareholders equivalent in value to an interim dividend of 2.63p, subject to shareholder approval.
'The board intends to resume cash dividends at an appropriate time, subject to market conditions,' the company said.
On current trading, Reach said it had seen a strong recovery in digital advertising, with digital revenue growth in the third quarter of 13%.
Chief executive Jim Mullen said that growth illustrated the 'significant potential of the customer value strategy as our websites, apps and newsletters attract increased page views from our scale audience, helping to drive forward digital revenues'.
Circulation sales had also stabilised, he said, and shown a gradual recovery during the second and third quarters.