(Bloomberg) -- Reach Plc, which publishes U.K. tabloids including the Daily Mirror, fell as much as 21% after saying the war in Ukraine has hit its advertising revenues.
The London-based company reported a 10% slump in advertising sales for the four months to April 24, with overall group revenue down 0.9% in the period.
“Over the past two months the market has experienced reduced advertiser demand and lower average yields, with the war in Ukraine significantly reducing the level of ‘brand safe' content for news publishers,” Reach said. Brand safety refers to advertisers avoiding any placement or context that could potentially harm their brand or reputation.
Today's plunge follows a 26% drop on March 1 after Reach warned that inflation will depress earnings this year. The stock is now down 55% for the year.
“We still anticipate broadly flat group revenue for the year, though with a higher mix of circulation revenues and lower digital contribution than previously expected as a result of more challenging trading conditions,” the company said in today's statement.
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