Reach, publisher of the Daily Record and Daily Express, saw group revenue plunge 6.9% in the first three months of the year as digital income fell sharply.
The company is now focusing on more cost cutting and diversified revenue streams in order to meet expectations for the year.
Disruption in search and referral volumes, mainly from Google, led to an 8.1% decline in digital revenue, with indirect revenue falling 10.5%.
Print income saw a 6.6% decrease, impacted by a 12.8% drop in advertising revenue, though circulation revenue remained relatively stable as cover prices were raised.
Despite these headwinds, the company is on track to deliver full-year market expectations, with an adjusted operating profit consensus of £95.9 million, by focusing on cost reductions and diversifying revenue streams.
Actions include growing off-platform audiences, expanding video content and launching premium subscriptions which are now live across 11 sites.
Piers North, chief executive, said: “We are undoubtedly in the middle of yet another big shift in the media world as the digital referral landscape continues to change, but we are navigating this uncertainty appropriately.
“We have the benefit of our scale and a portfolio of trusted brands, reaching 35m people every month and we continue to develop new revenue streams, in particular with our growing subscriptions business.”
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