LONDON (Reuters) -Daily Mirror publisher Reach Plc said on Tuesday it was trading ahead of forecasts and expects that strong momentum to continue, driven by improvement in print circulation and a 43% jump in digital revenues.
The company, whose titles also include the Daily Express and a stable of regional newspapers, has seen its shares rise almost 500% in the last 10 months since it started cutting costs and benefiting from the broader sector shift to online.
First-half adjusted operating profit was up 25.5% to 68.9 million pounds ($95 million), helped by a 42.7% jump in digital revenue. Circulation revenue grew 1.9% in the second quarter after it dropped by 11% in the first.
Reach said efficiencies would fund further investment in its digital operations and help its profit margin. It added that it would pay dividends in line with its free cash position.
"The business remains strongly cash generative and is committed to delivering growth for the benefit of all stakeholders," Chief Executive Jim Mullen said.
($1 = 0.7237 pounds)