Google killed our traffic – but we still made bank: How UK publisher Reach is defying the algorithm apocalypse
In a year when Google’s relentless algorithm tweaks and AI-powered search summaries left many publishers gasping for air, UK media giant Reach has pulled off something of a financial magic act: revenues dipped, but profits actually climbed.
Reach, the owner of brands like the Daily Mirror, Express, and Manchester Evening News, published its full-year 2025 results on Tuesday (3 March), showing adjusted operating profit rose 2.4% to £104.7 million for the year ended 31 December 2025, even as overall revenue fell 3.7% to £518.4 million.
The company attributed the profit to ruthless cost-cutting, a pivot to video and subscriptions, and a dash of AI magic, all while navigating what CEO Piers North calls a “disruption in the search and referral landscape.”
Google changes hammer the industry
Google’s 2025 updates were brutal for the industry. A series of core algorithm rollouts in March, June, August, and December hammered news sites with volatility, prioritising ‘useful’ content under much stricter E-E-A-T standards (Experience, Expertise, Authoritativeness, Trustworthiness) and expanding AI overviews that siphon traffic by summarising articles right in search results.
As a result, global publishers like CNN and HuffPost saw web traffic crater by 30-40%, with some warning of an “extinction-level event” as AI chatbots and summaries keep users from clicking through.
Reach wasn’t immune. Digital revenues slipped 0.9% to £128.9 million, dragged down by an 8% year-over-year drop in on-platform page views, thanks to “materially lower Google referral volumes” in the second half of the year. Print revenues, still the company’s backbone at £388.1 million, fell 4.6% but outperformed volume trends through smart pricing and promotions.
Yet, North spun it as a win in the company’s earnings release.
“We are pleased to have increased our adjusted operating profit to £104.7 million, driven by decisive action on costs as we move forward with a leaner and more strategic structure,” he said.
“In a year marked by disruption in the search and referral landscape, we have demonstrated our resilience with a strong financial performance.”
How did they do it?
Reach said that it leaned into three priorities: connecting with audiences, accelerating tech and AI, and diversifying revenues.
On the audience front, the company hired over 100 video specialists and ramped up multiplatform content, boosting off-platform page views by 20% and social referrals by 21% in the second half. Franchises like “All Out” for football and gaming, plus the Daily Expresso show, opened doors to sponsorships and branded deals.
AI got a big push, too. Reach integrated tools like its proprietary editorial aide Guten and Google’s Gemini across operations, with over 40% of staff becoming frequent users. The group also inked a content deal with Amazon AWS for a “pay per usage” revenue stream and is actively speaking with other tech giants.
The group’s diversification efforts also paid off. Digital subscriptions launched on six titles, including the Manchester Evening News and Express, with aims for over 75,000 subs in 2026. E-commerce grew, with sell-out hits like the OK! Beauty Box advent calendar, and diversified revenues rose 4.5%. Video revenues dipped 3% overall due to programmatic woes, but direct and social video surged into the double digits.
Costs were also slashed by 5.2%, beating the 4-5% target, helping margins widen to 20.2%. The company stayed cash-rich, with £103.5 million in adjusted operating cash flow and net debt at £34.9 million. Dividends held steady at 7.34 pence per share.
Looking forward
Looking to 2026, North said he is cautious amid ongoing referral woes and macro headwinds but confident in hitting market expectations of £96.4 million in adjusted profit, backed by 5-6% cost cuts.
Early trading in January and February echoed 2025’s challenges, but subscriptions and video expansions are ramping up.
Notably not all of the financials were positive. The group reported a £222.8 million non-cash impairment, which led to a statutory operating loss of £160.1 million.
Reach said it has also shuttered two print sites for efficiency, with £25 million in costs, but quick payback is expected.
