Good morning, everyone. Thank you for joining us today, either online or in person. My name's Piers North. I'm Chief Executive of Reach PLC, and welcome to our half-year results for 2026. I would assume you are familiar with our usual disclaimers, but they are here if not. So this morning, I'm going to run through our performance highlights for the first half of the year, and then as usual, I will pass to Darren Fisher, our CFO, for the financial details. Then I will come back and I'll take a closer look at our current strategic progress and explain more how we're viewing the current online market and how we see the opportunity in it moving forward. So let's take a snapshot of the year. To put it mildly, this period has continued to be characterised by significant external change. The media, and obviously publishing in particular, the landscape is revolving rapidly and we face notable shifts in how our digital content is discovered most notably the lower referral volumes which saw our on-platform page views declined by 40 percent however against that backdrop I am reassured by the resilience we've shown including being on track to deliver on our expectations for the year we've been able to partially mitigate this stark browser page view decline, as well as grow our priority areas, which means that our digital revenue declined 11%. Again, when on-platform page views, which has traditionally been our single biggest driver of our revenue, declined by a much higher number. The priorities that we set out to navigate the market, connecting with our audiences, accelerating the use of technology and AI, and diversifying our revenues have driven positive, tangible results, excluding our local business direct revenues grew six percent supported by the quality of our video content and the successful rollout of our subscription model on that model we've rolled out rolled out subscriptions across 15 of our sites and we're well over 40 000 subscribers to date we're firmly on track to meet our year-end target of 75 000. we've also made great strides in the technology space that makes this progress possible our new ai-powered launch pad platform is now in the hands of our editorial teams, streamlining content creation. And we've seen promising developments with new AI licensing revenues, not only in terms of progress with the big tech firms, but now also in smaller, scalable payment models. Operationally, we've continued to take decisive action. Our print closures, which we announced in the early part of the year, are tracking ahead of plan. Our ongoing focus on cost and cash discipline has ensured that we've delivered an adjusted operating profit of $43 million. In short, whilst we've had to navigate this significant external change, the core of our business remains strong. We are building a more focused brand-led business, and I'm proud of the momentum that we've maintained against such a significant shift in the referral market. I'll now hand you over to Darren, who'll take you through our financials.
Thank you, Piers, and good morning, everyone. Thank you also for taking the time to join us today. As we did last time, we have quite a lot to talk about again this morning. So far this year, we've seen a continuation of the disruption that we first reported in July last year, in particular with how content is discovered, and as I've been consistently saying, an unhelpful macroeconomic environment. This has made these six months particularly challenging, but I take comfort from two things. Firstly, it has reinforced our three priorities as the right course of action for our business, which we've made good progress on, as peers will cover later. Secondly, despite these market conditions, we're investing where we need to support our plans while continuing our disciplined and strategic focus on costs. Consolidation of our print operations has progressed successfully, ahead of schedule, and with the savings currently tracking ahead of plan. These actions will help underpin the savings necessary in the second half of the year. Finally, it is important to note that we are now in the penultimate year of our pension payments, these payments stepping down materially in 2028. As for our financial highlights for the first half of the year, we have delivered a strong profit performance of $43 million, and we've continued on our track record of strong cash conversion at 113%. We continue our disciplined and strategic cost management. Reflecting the trading environment, we have reduced operating costs by 10%, well ahead of the 5% to 6% target. This underpinned a one percentage point increase in our adjusted operating margin to 18.5%. Cash generation remains robust with adjusted operating cash flow of 49 million. As we enter the final phase of the bridging period, we have taken the decision to rebase the interim dividend to 1.4 pence per share, rebalancing capital towards our organic investments. I'll cover this in more detail a bit later. In terms of summary financial results, revenue has declined 9%, or 23 million, to 233 million. Within revenue, our digital revenues declined 11% to $54 million, despite 40% decline in paid views. Our print revenues, which represent about three quarters of our total revenue, declined 8% to $178 million. Operating profit decreased by 4% or $2 million to $43 million. And we ended the period with a $48 million net debt balance. And now turning to digital in more detail. We categorised digital revenue in two component parts, direct and indirect. These direct revenues declined by 1 million, or 4%, partly affected by our decision to drive margin improvements across our local advertising business by focusing on higher quality revenue. Excluding these local revenues, direct revenues grew 6% as we saw the benefit of our video expertise in attracting more agency work as we were able to deliver more complex briefs. Within direct revenues are our diversified products, which include premium subscriptions, affiliates, e-commerce and partnerships. These grew 2.5%. Our subscriptions rollout is on plan, with 15 brands now live. Piers will talk more about this, but we continue to develop and drive this new revenue stream. Our on-platform page views currently remain our key monetisation engine. Across the first half of the year, on-platform page views declined 40%, continuing the trend we saw across the second half of 2025, mainly due to lower referrals from Google. This adversely impacted our volume-sensitive programmatic business and meant that overall indirect revenues declined 16%. The disruption in how content is discovered reinforces the importance of investment and progress against our three priorities, so that we can grow more of our revenue, which is not dependent on referral traffic. Despite the on-platform impact, content viewed off-platform, that is across social media platforms such as YouTube and Facebook, is of increased importance. Our monetisation of these audiences has improved through our focus in this area, with the platforms increasingly rewarding, engaging content. Now, turning to print revenue. Print revenue comprises circulation, print advertising and other print. In circulation, which is the majority of print revenue, we continue to optimise revenue by carefully managing cover price increases to offset declines in circulation volumes. In this half, circulation revenue decline was higher than historic averages with Q2 at minus 7.8%. This is because of high volume declines, in particular Q2, where we have seen the decline elevated at 23%. This is against our normal decline rates of between 17 and 20%. Our view of this is a combination of the latest cover price increase with a continued cost of living pressures for our readers. We'll continue to carefully review future increases to optimise this revenue stream over the medium term. Print advertising revenue declined 11%, but continued to outperform volume trends, supported by food retail, including incremental spend around the World Cup. Government spending also continued to be an important print advertiser. This demonstrates the continuing relevance of this format to our advertisers. Printing and other print decreased as expected, as the prior year was supported by a number of one-off sporting revenues, such as football souvenir editions. I will now cover operating costs. We have a strong track record of discipline cost management, which we continue to actively manage. Our adjusted operating costs reduced by 10%, ahead of my original guidance, responding to the challenging market conditions. Taking a closer look, employee costs, our largest cost category, declined 10%, despite the inflationary pressures from the company-wide pay rise and strategic hires to deliver our priorities. The majority of the savings were driven by the restructure undertaken in the second half of 2025, rigorous control of vacancies, along with a contribution from the closure of our Scottish print plant during April this year. The 17% reduction in newsprint costs is due to reducing print volumes. It is worth noting that newsprint procurement remains the region's responsibility for retaining control over negotiation of price and volumes of this critical supply. Production and sales costs declined by 5% or 2 million, the majority of this saving coming from direct costs of sales. Other savings of 5 million were across all categories as we continue to focus on overhead management. In February, we took the decision to consolidate our print operations and close two of our printing facilities. This has progressed successfully ahead of schedule and with the savings currently tracking ahead of plan. The Scottish site transition has gone well. Here, we have moved much of our saltire printing to our retained facility in Oldham, near Manchester, with the remaining printing requirements served by long-term outsourcing agreements. It is important to note that there has been no operational disruption during this transition and the early closure of Soltyre has driven savings ahead of plan. We have decommissioned the site and over the next 12 months we expect it to be disposed of. Our southern site transfer is also on track. We have completed the transfer of our southern titles to the news printer site in Broxbourne with the final transition completed just this week. As stated at our full year results, the closure of the two print sites will create a one-off cash cost of change of around $25 million, primarily relating to severance, of which the majority is payable across the second half of the year. As a reminder, the Saltire and Watford print sites will be marketed for sale during 2026, and we are targeting to complete disposal of both sites during 2027. Decommissioning and valuation work is ongoing. now over to cash our balance sheet remains strong we generated 57 million of adjusted cash from operations our largest cash commitment is the agreed funding arrangements with our pension schemes pension payments totaled 28 million in half one which includes 1 million returned from escrow following the Trinity retirement benefit scheme buy in we paid 14 million of dividends as we did in the same period the previous year. Restructuring outflows of 8 million in the main relate to people changes and the significant prior year restructure we undertook along with the sole site closures. Capital expenditure of 6 million is in line with our expected spend for maintenance and investment projects. We are waiting for the final settlement cost bills relating to historic legal issues and as a result we made a payment of just 1 million in the first half of the year. Net debt ended at $48 million. As a reminder, we have in place a $145 million revolving credit facility committed to the end of 2028. Now just a reminder of our capital allocation priorities. We have material print profits, sustainable cash generation and a strong balance sheet, which remains key as we continue to reduce our financial obligations. nonetheless we recognize that the current market conditions remain challenging requiring increased cost of change as we manage through the bridging period whilst we recognize the importance of returns to shareholders we've taken the decision to reduce the interim dividend to 1.4 pence this creates greater flexibility balancing capital towards our organic investments peers will talk about a bit more about those later it is important we make these investments to deliver our priorities, including our brand development, subscriptions and new tech platforms. This is expected to derive more value to our investors over the medium term. We continue to adopt a prudent approach to managing our leverage, which is currently 0.4 times EBITDA and which we target to maintain below 1 times. This is the outlook. So stepping through our business from the top, we retain our cautious outlook for the remainder of the year for both our digital and print businesses. I expect to deliver around 10% of operational cost savings in the second half. This is partially underpinned by the announced changes to the printing operations. Importantly, that means we are on track to deliver profit in line with market expectations for the year despite the revenue headwinds. In terms of cash, there is no change to estimates relating to the closure of the two print sites. These are expected to create a one-off cash cost of change of around £25 million, mainly relating to severance payable this year. Pension contributions are expected to be £57 million. You can assume that capital expenditure will be similar to 2025. Our provision estimate to settle historic legal issues is unchanged. We expect to pay the remaining £4 million over the next 12 months. no meaningful disposal proceeds were expected in 2026 the Saltire and Watford Prince sites will be marketed for sale this year and we are targeting to complete the sale of these sites in 2027 we view the next 18 months of pension contributions as a bridging period with the end being clearly in sight this period will require our continued financial discipline and focus as I expect the higher levels of circulation volume decline to continue and that our margins during the bridging period will not exceed 20%. I do remain confident that we have the resources and the expertise to ensure we can navigate across the bridging period to be well positioned for 2028. Our prospect appears to provide more colour on our strategic focus. Thank you for your time.
Thank you, Darren. So we've given you the headlines. Now I want to go back over some of the progress that we've made over the past six months and also to give you some more colour and context, as Darren says, around those shifts we're seeing in the market. Before I do so, just a quick reminder, I've already referenced these and I will do so again. These are our three priorities that I shared with you all this time last year. They are the connecting with our audiences, accelerating the use of tech and AI, and more importantly than ever, diversifying our revenues. These have been our guide over the past 12 months, and despite the scale of the change, these priorities have not changed. and the reason because they were created with these shifts in mind this strategy builds in the dominance of the tech platforms the changing audience behaviors and of course ai so let's talk a little bit more about the digital in the first half of the year the i want to lay out the environment we're operating starting with some of those changes that we've talked about we have seen a material change in how content is discovered online and as darren said this is down to significant decline in referral volumes particularly and primarily from Google. It is worth noting however that in the last hundred days we have seen a stabilisation in on-platform audiences though we have to work to the assumption that these referrals are unlikely to recover. But the real story isn't just about the traffic decline, it's about our response to it and how our strengths and our brands stood up to this despite the change. To state the obvious, the The landscape illustrates exactly why with a strategic decision to move further away from a reliance on referral traffic is the right one. It's why we've placed so much focus on original content, paid subscriptions, quality video, social engagement, off-platform distribution and a range of moves in the AI licensing space. In short, our focus areas are making sure we have more control on how our content is consumed and used by other parties. In other words, we're actively creating a more sustainable digital business model, and that is beginning to pay off. For example, whilst lower yielding, off-platform revenues have grown over 90%. We are getting going with emerging licensing deals, and some of the regulation around how the tech platforms engage with other businesses in the UK is moving us in the right direction. So let's take a quick look at the three priorities in brief, starting with connecting with audiences. I've given you the context, and looking at this slide reminds me that amongst all this change, it's worth remembering what our strengths are and remain. For starters, despite all this change, we still reach two-thirds of the UK online population. This is an immense footprint and unmatched by our commercial competitors. And even in this new world, Scalers is still enormously helpful when it comes to weathering the storms, reaching new consumers for our subscriptions and attracting commercial partners. I've talked before about reaching people where they live, and whilst the geographic reach will always be a point of pride for us, we also take this to mean reaching people where they spend their time, for example, the platforms. This is where our off-platform and our video focus really comes in, which are both now an increasingly important source of revenue. And to put it in perspective, despite all these changes, we have so many indicators which demonstrate that our content and our services remain highly relevant and valuable to humans and machines alike. 35 million adults in the UK still engage with our content every month. Every second, we are still delivering 200 pages on browsers. Since this time last year, social video views are up 55%. Social followers are up 15%. And now, of course, AI bots are scraping our content many millions of times a day. So we've seen a clear fundamental shift in how people and machines access our content, but through our strategy we'll be able to take advantage of these opportunities as they come. What's more, our value is increasingly tied to the real-time, on-the-ground content and journalism that our teams provide all around the UK, Ireland, and now the US, obviously, too. And this is what the AI machines cannot replicate, because even the best large language model doesn't know what happened at the end of your road just recently. So how will we make this relationship with our audience even stronger over time a key push will be strengthening our network of brands driving digital subscriptions with more marketing investment than we've had in recent years of course this slide highlights some of our much well-loved brands and well-known brands such as the match even news the echo the mirror but also some of our more recently launched one including our all-out football network of club podcasts which sees a combined 1.4 million monthly views and listens. And whilst it complements our digital subscription diversification, it is also worth pointing out we're looking at trialling new subscription-based community brands, often around our smaller legacy print brands, which so far have had no online home or business model. So for example, we're starting next month with the Southport Visitor, Ayrshire Post and the Journal in the northeast of England. Moving on to tech and AI. Most visibly, our tech has obviously provided the infrastructure necessary for our subscription rollout the team integrated ad light digital subscription across 15 months you know 15 sites in only a few months which has allowed us to monetize those existing online products looking ahead to the rest of the year i'm excited about launchpad a new publishing platform bringing in all the in-house ai powered tools you've heard us talk about over the last 12 months mantis guten content score and the like this means as a content creator or a journalist on the move you can use ai to give you headline options use data for ideation content originality and value grab an image from our archive edit upload video all distributed from your mobile and launchpad will be key not only to our existing brands but also those community brands that i talked about but also impossible in future possible for independent creators last but not least a nascent area but i'm increasingly optimistic about the future revenue opportunity and licensing within AI licensing you are seeing a funnel with different profiles of revenues at the top of that funnel we continue to engage the large platforms I've talked before about courtship and courts and I mentioned our deal with Amazon in March and that's now providing ongoing revenues and we're close to agreeing terms with some of the largest businesses in this space over the course of h2 in the middle of that Funnel we have a whole potential category of what essentially a b2b outside of the more obvious tech giants for example We're working with a financial services business our content providing contextual information that helps serve their data and their clients And then for the long tail we are working with the likes of Amazon web service and other players such as Tolbit Where we're putting in place effective real-time content marketplaces? These will enable us to get paid small amounts at high volume every time content get used by an AI bots The industry obviously is referred to this practice as scraping, but if policy, regulation, the tech, and the markets can catch up to these developments, it will mean a much fairer and clearer value exchange for content businesses like us in an AI world, akin to the real-time bidding that we've had in advertising for decades. We know our content has tremendous value. The numbers validate that to our audiences and to other businesses, including AI firms, and we're just at the start of monetizing this. Moving on to diversifying revenues. Clearly important given the environment we're in. This strand has moved on considerably in recent months, obviously driven, as I said, by subscriptions. It represents just under 15% of our revenues, and our digital revenues remains a big opportunity for us. A lot has happened over the last sort of six months, and I'm very ambitious about where this could go next. During this time, we've moved fast. We've successfully rolled out paid subscription across 15 of our brands, Giving our subscribers premium content, ad-line experiences, offers, and more. We've already secured well over 40,000 subscribers, and we're well on track for our 75 target that we set for the full year. We've seen success across our network, across the more well-known brands, but also in the likes, pleasingly, of Wales Online and Stoke Sentinel. Over the next half of the year, we still have a few more brands to launch, which will keep driving that momentum. But the real work now will be around finessing our proposition as I said earlier Proactively marketing our brands and our content in ways that we haven't done before and through this work It's been fascinating to see what the users value in each of our brands and what content drives conversion Now there is sometimes attention in our subscriptions focus which means there will be trade-off that maybe impacts pages But we're fully committed to serving the core of our paying customers who value our content and excite and it's exciting see where this goes next to add some more color I did just want to zoom in on video for a minute this has been always part of our connecting with audiences strand but it really brings together all of our three priorities with tech and revenue diversification too so it's a really good example of how we're doing all of the strategy with this one initiative overall I'm pleased with the success we've seen so far from doing more quality video which we know packs real commercial value we do a huge amount in everyday journalism but also in the high-end production which we call studio often longer-form content and often featuring external talent and guests our performance here demonstrates exactly how this push is translated into commercial success with studio revenues up 70 percent our work with partners like nestle on their made in britain made by britain campaign is a good example of how this pays off with our ad partners we've worked with them improving the trust in their brand using high-end high-performing social video around farming and communities. We started this work last year and they've just renewed their partnership with us again and the new campaign gets underway later this month. As I said, we're seeing this quality capability keeping us top of mind with big agencies for multi-platform campaigns supported by direct sponsorships with the likes of Nord VPN on All Out Rugby League, Scottish Water on Hotline Live, our football product north the border during the World Cup or our new partnership with pure gold on our daily express show show as an aside daily Expresso was YouTube's most watched UK news show in June ahead of some of the really established players And beyond these individual examples what's exciting is this creates that virtuous circle of video Where every time we can showcase our improved capability? We in turn attract bigger briefs often from new brands that we traditionally have not worked with So this is an area where we're seeing good revenue growth from multiple sources and good future prospects too. And as we continue to finesse and expand our video offering in the back half, including now from our US teams who have more capability in this space. This area is a big factor in why, excluding that local business, our direct revenues are up by 6%. We're doing more to monetize our scale audience in a way that we can more effectively control. to bring this to life for the last couple of presentations we've always got a bit of a new tradition of highlighting our editorial in video but this time given the recent World Cup I thought it would be fitting to make it a football specific one so if we could roll the VT so I think when we launched our Connecting with Audience strategy we didn't think we'd reach Clarence House and Prince William but that was him hanging out with our Aston Villa podcast team so before I wrap up I want to leave you with a little bit of a mantra that will define our path forward. We are moving away from a pure volume play and focusing on original content, distinctive brands for better returns. This isn't just an editorial choice that will form the likes of the commercial of a refocused brand-led business. We're transforming how we operate using our three core priorities to navigate the complex market while keeping our feet firmly on the ground with discipline, cost and cash management. Over this year, we're investing $9 million exactly where it needs to be, in our video capabilities, our technologies, and the undeniable strength of our brands. We are simplifying, we are focused, and we are executing. My confidence in our trajectory comes from the core we've begun to build. We are not just holding steady, we're actively building the future of this company, with a few key milestones still to come this year. We're scaling our digital subscriptions towards that 75,000 target and beyond. We're introducing new subscription products with the community brands. We're deploying our launch platform across every news desk Ensuring our teams have the best tools to drive smarter faster content decisions and creation And we're opening up new revenue frontiers through strategic licensing deals and using AI to support large-scale digitization of our archive So before we move to questions, let me sum up where we stand While we've seen some welcome stabilisation in our on-platform referrals since the start of Q2, we remain prudent and maintain a cautious outlook for the year. Our approach moving forward is singular, disciplined execution against our three core priorities, guided by this renewed focus on our brands. Meanwhile, we're simplifying the group through strategic cost actions, ensuring we operate with agility that the market demands. As part of this agility, we'll manage our print business to give the optimum returns for the medium term and we're building on good foundations and we're approaching a significant turning point for the business as we enter the penultimate year of our material pension funding contributions we have a clarity we have direction and the resilience to create long-term value we're confident in our path and we are ready for the future thank you and i'll now take questions Do you need a mic?
Morning, Gareth Davis from Deutsche Numis. Maybe two with a few bits from me. Firstly, the direct revenue, you said you're sort of proactively managing at a lower margin local, and plus six is a strong performance in the stuff that's kind of going well is higher margin. As we look into H2, presumably you've got a similar headwind until we get into 27 around that local. And how are you thinking about monetization on the local in terms of what you're swapping out, really, for the stuff you're getting rid of? So just really understanding that trajectory a bit more on direct. And then on circulation, a couple of questions around it. Is it local? Is it national? Is it across the board? Is it a specific title? Did it feel like it was specific to a cover price increase? and how should we think about a cover price increase in the second half of the year in that context. And you also mentioned the trade-off of page views to subscription. Is there any evidence from what you can see that you also having to accept a little bit of a trade-off for subscription and circulation?
So, Darren, I can take the circulation question. I can come back on that page view trade-off. But on the direct revenues, so, as you said, the focus for us really is we restructured the sales organization for this year where we've effectively created a single entity we try not to look in a way now of kind of regional and national we're looking at the scale of the opportunity with the advertiser so really we're focused on kind of the head and the torso of our advertiser um portfolio um you know we will as you say expect sort of headwinds across the back half of the year with that local before we go into to 2027 But it's about making sure those teams, when they're dealing direct with advertisers, as I said, of a certain size, they're able now to offer a lot more in terms of video. So we're rolling out new AI-supported video creative for those local teams. So clearly, if you're a small to medium-sized business, creating video creative has traditionally been hard. We can now offer advertisers the ability to create video out of their own assets through AI. And that is early stages, but it's seeing promising results. So, yes, we will continue to see the sort of headwinds in the back half of the year, but we're optimistic as we reprofile that business. I'll let Darren come in on the circulation question about where it falls, but on the page views versus subscriptions, now there's no evidence that that's linked to the trade-off on circulation, if that was the question. We do see them as two distinct entities. But as I said, we have accelerated subscriptions over the last three months, And actually, as I've referred to, we've seen a relative stabilisation of our page view number. So there are times where we will need to make decisions. Sometimes the correlation and causation is hard to match. But I believe that the priority has to be building that subscription model more. Darren, do you want to take the circulation?
Yeah, no problem. So, look, first thing I'd say, Gareth, this is the first CPI, certainly in my time, I'm sure, probably for much longer that we've seen has declined outside of our tolerance levels, our sort of expected tolerance levels. So in that context, you know, the only real data we have is around, you know, what we've seen recently. And therefore, in terms of is it really just the CPI itself, it's just a little bit difficult to unpick at the moment. You know, we've clearly moved into an increasingly probably difficult macro environment. You know, the cost of living is certainly going up for people. And then you get odd factors like, you know, we've had a really hot summer of people getting out and buying their newspapers, you know, and then you've got the World Cup as well. So there's all sorts of things that it could be. You know, what's important to us is that we get another data point, so it's likely we will do the next CPI increase just to see how that one performs in order to be able to get more data. Needless to say, though, you know, I think I've had this question over the years many, many times as to, you know, when will this come? It's come now, but again, we just need to make sure we understand it before we take any real action. Needless to say, our teams are expert at managing this. They understand their business very, very, very well, and we will get to the bottom of it. And in the meantime, we will be looking at what the strategic options are going into 2027 should we decide that we need to change TAC based on data points. So you did ask a question about where it was coming from. It's primarily the Nationals.
Yeah, it's Nick Dempsey from Barclays. I've got two, please. So kind of anecdotally, local news agents, sort of corn shops, et cetera, either struggling to continue with sort of the weekly paperboy kind of approach or struggling to continue at all. Is there any factor that retail has got worse? and so people are having to go further afield to pick up their papers or they can't get that regular delivery that they're used to. Has that been any part of the weakening of volumes? The second question, just on the pension, so if we maybe are now talking about a higher rate of top-line decline for the group, which I'm looking at your commentary on 26 and 27 at least, does that change the dynamic in terms of your next negotiations for the pensions so might we see those guys want to see top-ups for longer if the top line is predicted to be weaker for longer shall I take the pensions I mean the question no there's no the retail point we don't think is a factor in in the change in trajectory on the on the circ as Darren says this is more likely to around the cost of living, retail distribution
and availability remains fairly constant. And clearly, as that market evolves, all of the distribution and retail, we will make sure we optimise to ensure the retail partners have the available copies. Do you want to take the pension?
Yeah, so on pensions, so we are, I'm sure you're all aware, we're currently in the trineal process, which will end at the end of March next year. So, yeah, we may be able to get it done a bit earlier, but let's assume it will be the end of March. In terms of, if I park the link, if you like, to performance for a moment, the reality is we are really in sight of the end of the pension contributions. So at the moment on the current schedule they step down to 15 million in January 2028. I don't expect at the moment at all that we will have any change to those contribution schedules as the backstop, if you like. And the way I think about this is when we get to March next year, we finish the ternials, we only literally have nine or ten months to go in terms of getting to a point where we have the contribution schedules completed. So I don't at the moment feel that we need to go into the ternial looking to negotiate or renegotiate the pension contributions to a lower number. I just think it would be, we would prefer to just make sure that we get these closed down not only for the company but also for the pension schemes as well thanks everyone morning sean keely from pamula i've
got three questions if i may gents um first of all on ai revenues sort of going forwards you've pointed to a couple of different models licensing toll bits etc i was more of a sort of thematic question where are you seeing in your conversations with the llm providers that they see the real value in your content is it sort of some of the local content that maybe others don't have is it the back catalogue and i think you referenced sort of the digitization project going there um or are they mainly looking for big national stories um secondly just touching on newsprint very quickly. Obviously, we've got ongoing conflicts in Iran. Could you just remind us what the outlook is for costs on newsprint, if you're seeing any impact from potential energy prices and then any sort of hedging or to the extent to which you're forward bought on that? And then thirdly, just on the subscriptions, I think you touched on both marketing investment and product improvement for subscriptions. Could you just give us a little bit more detail as to what sort of the plans are in the next 6, 12, 18 months. Are you looking at changing the ad loads, the formats, and anything else you're doing on that as well?
So again, Darren, if you take the newsprint course, I'll take the other two. So on the AI question, the conversations with the large language platforms are as varied as they are. They all require slightly different things. I mean, at a thematic level, they have a huge interest in real-time information because that is the thing that keeps those engines burning. You know, clearly archive is of interest to them, but like any archive or evergreen content, that is a one-time value. So they all have a broad thematic that they want real-time content. They obviously need it to be accurate. And again, as a professional curated news organization, that is our USP. They want it to be original, of course, because they want as many different original sources to play into so i'd say those are the broad themes but i think that for me is the reason that when we engage with certainly some of the more established tech plant players where we have existing relationships they see that value and that's where i'm most hopeful to progress it but they will have slightly nuanced plays and platforms on that on the point around sort of improving subscriptions i mean we sort of talk internally that we've kind of launched subscriptions but really we just launched paywalls there's a huge amount of stuff that we need to do even just in the way for example you experience the the kind of paywall experience we're relatively unsophisticated we need to be much better in terms of driving conversion through that small things like apple pay and google wallet all of that sort of stuff so that is where the technology investment will go to make sure that when our users land we drive up conversions and all that and that's where the opportunity lies so we will invest in people in terms of making sure that our brands have um you know kind of brand representation so that our local for example in a manchester or newcastle or belfast where actually belfast we've already trialed successfully over the last year or so those kind of activations whether it be the local marathon or the local event that's our kind of focus so it'll be a combination of technology and people to make sure that we we kind of broaden out the offering as said, we do consider ourselves still in the foothills of subscriptions. We've got a long way to go, but I'm pleased with the progress we've made. Do you want to take the question around?
Yeah, so we will all remember going back a few years when prices certainly did escalate as part of, I think it was the Ukraine war at the time. We haven't seen that in relation to what's going on in Iran. It's been pretty stable. We have just had a round, actually just a half year round with our main suppliers and while there may be a little a little bit of upside pressure that's more I think more market driven rather than rather than specific to any anything else what I would say is I mean the industry is is also contracting so we have to keep an eye on that you know we're seeing some suppliers considering moving to things like packaging so so that would be one thing we do need to just keep an eye on as we go forward but But no, we have an excellent negotiator of our newsprint in the business. And at the moment, we're seeing relative stability in that area.
Operator
A couple that have come through on the webcast. Can you give me a sense of what's happened to Google referrals and on-platform audiences in H2 compared to H1 of this year, what you've seen in the last few weeks? So the last few weeks has been, as I said, relatively stable. i think we put a lot of effort into making sure things like the technology in the ux that sits behind or on browser we are not certainly you know we're not giving up on page views but as i said we will just be very cautious to the to the outlook going forward thank you a technical one on capital allocation your dividend policy states total shareholder returns in any year cannot exceed the aggregate pension contributions made to address past deficits given your deficit recovery payments will be falling to 15 million and 28 and drop to zero in 29 does that mean total distributions will be capped at that level in terms of the
dividend or the contributions themselves yeah so there's um there's an agreement in place which actually uh in with two of our schemes actually that um have that condition um as part of the training all that um is one of the items that we'll be negotiating um to remove it has become irrelevant. It was relevant at the time it was put in place, but given the contribution schedules are due to come to an end, we'll be negotiating that out of the contracts.
Operator
Any update on the estimated market values and sale of Watford and Soltyre?
Yeah, it's a little bit finger in the air, to be honest. We still are going through the process of valuation. In fact, we're only really getting into that process of valuation. I would say Soltyre is probably of less value than Watford. We've had quite a bit of interest already just on this list coming in. Difficult to put a number on it if you wanted to put something in the model. But don't hold me to this, but I'll put in probably around $10 million. But again, that's based on some very, very limited view, really.
Operator
Regarding the print consolidation, you guided to a $25 million one-off cash cost of change and mentioned a two-year payback. Does this imply $12.5 million of annualised operational savings?
So the two-year payback relates to the cash payback. Not all of that cash will turn into ongoing savings. The disposals proceeds, for example, would not be a recurring item. So you just need to be mindful of that.
Do you see in the near future the share price will start to improve? what peers and I do and the executive team do is run the company in the way that we think is right for the business the share price tends to look after itself any more questions in the room if there's not thank you all very much for attending and tuning in today and with that I'll bring proceedings to a close
