he writer of the Daily and Sunday Mirror newspapers has revealed tumbling half-year earnings because it suffered a success to digital gross sales from a transfer by Facebook to vary the way in which it shows news content material.

Reach – which additionally owns the Express newspapers, the Daily Star and regional newspapers throughout the UK together with the Manchester Evening News – noticed digital revenues droop 16.1% within the six months to June 25, which dragged general turnover down by 6.1%.

The group mentioned the Facebook news adjustments have led to a “significant” drop in clients being referred to its websites and a 16% decline in web page views from on-line readers over the primary half.

Facebook’s adjustments in its news feed embody a call in April to close down Instant Articles, which was a mobile-friendly format that shortly loaded news articles on the Facebook app.

Digital progress for the interval has been materially affected by decrease referral site visitors throughout the sector, significantly following Facebook's deprioritisation of news content material, which has pushed web page view declines for publishers

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Reach reported underlying working earnings plunging by practically 1 / 4 – 23.5% – to £36.1 million – as a result of knock to its revenues in addition to hovering prices.

Statutory pre-tax earnings fell to £6.7 million from £32 million a yr in the past.

Jim Mullen, chief government of Reach, mentioned: “Digital growth for the period has been materially affected by lower referral traffic across the sector, particularly following Facebook’s deprioritisation of news content, which has driven page view declines for publishers.”

Reach is chopping prices by 5% to six% this yr to offset the buying and selling pressures, which it mentioned had been set to maintain earnings on monitor with full-year expectations, serving to shares leap 18% greater.

Most of the fee financial savings might be delivered within the closing six months of the yr, it added.

The group introduced plans in April to place 420 jobs within the UK and Ireland vulnerable to redundancy, together with these of round 190 of its journalists.

But Mr Mullen mentioned that print media was displaying “resilience and predictability” within the face of ongoing pressures.

He added that circulation income has grown and that newsprint prices are beginning to come down now that power payments are easing again.

Sales from circulation rose 2.4% within the half-year, as cowl value will increase offset falling circulation numbers.

But print promoting revenues plunged by 18.3% within the half-year.

Results additionally confirmed it made an extra £3.5 million in payouts over phone-hacking allegations, with its provisions for liabilities surrounding the saga elevated by £5.9 million to £45.4 million on the half-year stage.

The National Union for Journalists (NUJ) mentioned journalists have seen the digital enterprise technique they're engaged on “pulled from under them because of the vagaries of Facebook”.

Chris Morley, NUJ nationwide coordinator for Reach, mentioned: “These downbeat half-year figures in no way represent the hard work of our members in what have been the most trying of circumstances.”

He mentioned that in addition to two rounds of redundancies this yr, its members have additionally been supplied a pay supply that “falls well short of inflation”.

Reach declined to touch upon pay negotiations.