The owners of the Daily Mirror, Reach Plc, forecast a big hit to annual revenue as newspaper circulation as well as ad and digital sales were hammered in April by Britain’s move to impose a strict lockdown, 7 May.
It has also warned that the uncertainty around the severity and duration of the crisis casts a shadow on the impact of print circulation, advertising and events.
The company, which also owns the Daily Star, the Daily Express and several other brands, said it had seen an estimated 30% slump in April sales from a year earlier.
“While in some areas we have recently seen a stabilisation in trends, circulation remains significantly below pre-Covid-19 levels and advertising remains very challenging and uncertain, with regional advertising particularly impacted,” Reach said.
The company said last month it would furlough 20% of its staff, cut wages by 10% and management pay by 20% as it tries to keep its regional and national titles operating during the pandemic.
The company said it had net cash of £33.2m after cutting costs and drawing down £25m.
In the four months to 26 April, revenue fell 13.1%, despite a 4.7% growth in digital sales for the period. However, digital revenue for April, which represents a full month of impact from the nationwide lockdown, dropped nearly 23%.
Reporting by Pushkala Aripaka and Yadarisa Shabong in Bengaluru; Editing by Anil D’Silva
