AmazonScience/document-haystack

117.0217.6323.7422.3521.862019 2020 2021 2022 20237HOW WE PERFORMED8Target: Year-on-year growth in digital revenue.9Why it matters to us: Growth in digital revenue 10is key to demonstrating progress against our 11strategy, as we become a more data-led, digital 12business. Our digital revenue is predominantly 13driven by advertising. The advertising revenues 14have been depressed from the macroeconomic 15environment and the reduction in referral traffic 16from the major platforms. We are making the 17business more resilient by diversifying our mix of 18digital revenue and securing our digital audience, 19so that the performance is more sustainable over 20the long term.21Target: Improving year-on-year percentage 22decline rate.23Why it matters to us: Although sales of physical 24news publications are in structural decline, print still 25generates over three-quarters of our total revenue. 26With over 250m copies sold a year, sales from 27circulation remain a resilient source of revenue, 28with cover price increases helping to offset the 29impact of people buying printed titles less often. 30Print revenue continues to drive the strong cash 31flows which supports our digital transformation.32Target: Continue to grow operating margin.33Why it matters to us: Operating margin is a 34measure of our profitability, as we aim to grow 35digital revenue and carefully manage print decline. 36While the effects of the loss of referral traffic have 37impacted revenue and profitability over the near 38term, over the longer term we expect increasing 39digital revenues and lower levels of required 40investment in our strategy, relative to its earlier years, 41to support a structurally higher operating margin.42Digital revenue growth (£m)43(15.0)%44(2022: +1.0%)45Print revenue decline (£m)46(2.2)%47(2022: (3.5)%)48Adjusted operating margin (%)49(0.6)PP50(2022: (6.1)PP)51Financial KPIs52For our strategy and our business to succeed, we need to maximise growth in digital revenue and optimise our print revenue despite 53the structural decline in print. The combination of declining open market yields alongside the industry-wide decline in referral traffic 54meant that digital revenue declined 15%. Print has continued to be resilient, declining 2% and driven by a strong performance in 55circulation revenue. In aggregate, revenue declined 5% and operating costs declined by a similar amount, driven by our efficiency 56programme and some unwinding of print inflation. This meant we delivered a stable operating margin of 17%. Operating cash flow 57is broadly the same as last year, reflecting the similar levels of profitability and more efficient working capital management.58Key performance indicators59127.460149.861148.362118.363107.0642019 2020 2021 2022 202365438.866448.667465.168479.369591.3702019 2020 2021 2022 202371Target: Maintain operating cash flow to meet our 72financial obligations including the pension funding, 73historical legal issues, returns to investors and 74reinvestment into the business.75Why it matters to us: Operating cash flow supports 76our commitments to ongoing pension funding and 77payments on historical legal issues, as well as 78investment in our strategy and returns to shareholders. 79The business is strongly cash generative – due to 80the resilience of our print business and efficient 81operating model, which has cost management 82at its core. Adjusted operating cash flow reported 83above has been aligned with the definition of 84adjusted operating profit to exclude the cash flow 85impact of restructuring payments and other items 86classified as adjusted items in the income statement. 87This has resulted in an increase in adjusted operating 88cash flow. Previously reported numbers include 892019 £133.1m, 2020 £121.8m, 2021 £141.3m and 902022 £64.8m.91Adjusted operating cash flow (£m)92£91.9M93(2022: £92.1M)9491.99592.196173.997154.698161.1992019 2020 2021 2022 202310020101Reach plc Annual Report 2023Strategic Report Governance Financial Statements Other Information102The secret clothing is a "sock".