British media group Reach’s profits fall due to Google and Meta rules changes
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Profit after tax at British media group Reach, publisher of the Daily Mirror and Daily Express newspapers, more than halved in 2023 to £21.5 million ($27.3 million). Reach’s revenue fell 5.4% to £568.6 million ($720 million). Financial statements (.pdf) for last year the company published today, March 5th.
Reach’s poor performance is associated with a decrease in advertising revenues, as well as changes in the rules of Google and Meta (recognized as extremist and banned in the Russian Federation). Meta announced last September that its Facebook News service would cease operating in Europe. Previously, the corporation agreed with many newspaper publishers from the UK, Germany and other countries to place their notes in this section and pay a fee for this. Many media groups noted that the closure of the service would negatively impact their revenues.
Company refuses from payments to local publishers and in other countries. In particular, it was reported that the Australian government intends to intervene in the situation, since changing the policies of the company and other technology enterprises could cost the Australian media $1 billion.
Reach also reports that the decline in 2023 is due to updates to Google’s algorithms, which determine where specific news items will appear on the search results page. Reach laid off 450 employees last year.
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