Daily Mirror publisher Reach hit by Google traffic slump

Reach Publisher Hit by Google Traffic Slump and Weak Digital Revenue in Q3

Reach Faces Challenges from Digital Revenue Decline and Industry Disruption

Digital Revenue and Audience Traffic Pressures

Oct 13 (Reuters) - Daily Mirror publisher Reach said on Tuesday digital revenue remained under pressure in the third quarter, and that it remained cautious about the segment's full-year outlook as industry-wide disruption weighed on audience traffic from Google.

Impact of AI and Search Engine Changes

• News publishers are navigating falling print readership and weaker referral traffic from platforms such as Google amid the rise of AI chatbots.

• Google's AI Overviews, which answer queries directly in search results, have drawn complaints from publishers over falling traffic and advertising revenue.

Financial Performance and Market Reaction

• Reach's revenue fell 14.1% in the quarter, with digital revenue down more than 20% .

• Shares of the company fell as much as 4.3% to 44 pence in early trade, before paring losses and trading largely flat as of 0717 GMT.

Company Response and Strategic Moves

• The company said print advertising was supported by the FIFA World Cup, and off-platform revenues benefited from AI licensing agreements.

• 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.

• Reach said it remains on track to deliver full-year results in line with market expectations. ($1 = 0.7561 pounds)

(Reporting by Atharva Singh in Bengaluru)