Mirror publisher blames revenue decline on Facebook changes

theguardian.com:

The publisher of the Mirror, Express and Daily Star newspapers has blamed changes in the way Facebook displays news content for a slide in its digital revenues.

Reach, which also owns hundreds of regional newspapers including the Birmingham Mail, Liverpool Echo and Manchester Evening News, reported a fall in group revenue of almost 6% for the four months to 23 April.

It has previously announced plans to slash hundreds more jobs amid a £30m cost-cutting drive as it battles higher costs resulting from inflation and disappointing advertising sales.

The newspaper group, which also owns a network of regionally focused news websites including Glasgow Live and Hampshire Live, said it had experienced a slowdown in the number of page views from online readers, with changes to the presentation of news by Facebook reducing traffic to its sites.

Reach’s digital revenues have slumped by almost 15% since the start of January and it warned of a challenging environment for digital advertising. However, it said its print revenue remained strong, and it has continued to sell “robust” quantities of newspapers.

The company said revenue from print circulation climbed by 2% over the period, as it benefited from higher prices it is charging for its newspapers that were introduced last year. It added that print advertising was slightly ahead of expectations.

Jim Mullen, Reach’s chief executive, said: “External factors continue to impact digital revenue, delivery of the customer value strategy is driving a higher quality mix, underpinned by the strength of print.

“Our focus on data, means customers are receiving and responding more often to relevant content and a more engaging user experience.”

Reach, which is holding its annual shareholder meeting on