One way to share your financial performance with investors and other stakeholders is to write a financial press release. According to SEC, every publicly held business or company needs to unveil its financial performance quarterly. This is actually a legal requirement that all companies registered under the SEC must abide by.
There are multiple ways in which these companies can release their financial statements. For example, some of them prefer to issue these statements through newsletters sent to shareholders. Others will publish their financial report on their sites. Even so, one of the most effective ways of sharing the financial performance of a business remains the financial press release.
Editors in various media outlets often choose a few companies and publish their financial reports. By default, the remaining companies appear in the Wall Street Journal or Dow Jones Newswire. Given that there are limited timeslots on television and radio, and limited space in publications, not every company can be featured on major outlets.
It’s normal to stumble upon financial press releases from public companies because they’re supposed to provide them. On the other hand, private companies are not required to declare their financial statement. This also applies to private companies that are worth billions.
For this reason, when a private company sends a financial press release to a media outlet, it’s bound to get attention. After all, they are rare and no one expects them. However, displaying transparency with a financial press release is a good way to earn trust among the public. By earning this kind of trust, you can attract more investors, business partners and clients to your business.
How to write a financial press release
With all of this in mind, here are tips on how to write a financial press release in 2023:
1) Start with key details
Remember, when you write a press release, you’re competing with other companies for limited space. Therefore, you should start by providing key information to capture the attention of finance journalists. Oftentimes, the stories that secure media coverage are those that are newsworthy. For instance, companies with significant losses or profits during the last quarter always get significant media coverage. By ensuring that journalists and editors can identify why your financial press release matters to the public, you can boost your chances of getting media coverage.
Here’s an example of a newsworthy topic:
“Bills Department Store is reporting a 30% revenue increase in the third quarter. This remarkable increase in revenue demonstrates that the company is performing well, with a notable boost in sales. Thanks to this growth, the Bills Department Store is creating more employment opportunities.”
The best part of this press release announcement is that it highlights why this news matters to the public. This is the kind of newsworthy content that media outlets will be willing to publish. Unfortunately, you will also capture media attention if you’re announcing a huge loss in any quarter. This is because a loss directly affects the public. A loss would mean that your company is struggling to make sales and your employees are losing their jobs. In fact, this kind of performance could affect the economy adversely. In some cases, the company could even be on the verge of getting auctioned. As much as no one wants to make this kind of announcement, this is something that people will want to read about.
2) Use the proper format
Financial press releases follow a certain standard format. This format is somewhat different from the usual press release format. If you want to maintain credibility for your business, then you need to make sure that your press release follows this format. Working with PR experts is a good way to be sure that you’re following the correct format. A skilled press release writer will also understand which figures need to be highlighted. They also need to discuss your company’s revenue, dividends, and shareholder earnings. More importantly, they need to do this in a way that reflects positively on your company, even if you’ve registered a loss.
If you have a public company, your PR writer will talk about price per share. They also have to discuss the impact of the financial report on the staff and community around. In particular, they will discuss any employment opportunities or job losses.
Additionally, they will compare your current financial report with the previous ones. The release also has to mention your performance in the previous quarter in addition to that of the current quarter.
For example, let’s assume Bills Department Store recorded $1.5 million in revenue last year. In the first quarter of this year, the company then reports $2 million in revenue, which is a significant increase. In the second quarter, the company reports a revenue of $2.1 million. In the third quarter, they record a revenue of $2 million. With this performance, the company may experience a downturn in the last quarter.
3) Include tables
Including tables, videos, graphs, and photos in other press releases is optional. However, in a financial release, you must include tables. These tables help the journalists or editors to compare the financial performance of the company in different quarters. They also provide intel on the current performance of the company.
It’s not just the journalists and editors who benefit from your tables. Investors and stakeholders also find tables resourceful. A standard financial press release comes with many tables. The first table should show the performance of the company in the previous quarter. It should also include the past annual earnings. The second table will show the current financial performance. This includes price per share and dividends.
A standard press release doesn’t extend beyond one page, but financial press releases can easily extend to three pages. That’s because the tables and any supporting data occupy more space. If you’re working with an expert, you can make it even shorter and more engaging for the readers.
4) Review it
Before sending the release, you should always review it first. You can involve your legal team, PR team, and investors in the review process. Your release should not have any errors, regardless of whether they’re grammatical errors or financial errors. They will help you double-check the numbers and ensure all the information is accurate and cohesive across the board. Any inconsistencies can destroy the country’s credibility in the public eye.
5) Hire experts
You cannot take gambles when you’re writing a financial press release. It’s either you’re a pro at it or you’re not – there is no in between and there is no winging it. The details must be concise and accurate, especially since we’re talking about numbers here. Therefore, if you don’t have access to a skilled PR writer, a copy editor, and a financial expert, then you should hire professionals to help you.
It is for this very reason that PR agencies like Pressfarm exist. The experts at Pressfarm can help you turn your financial information into newsworthy content by creating engaging email pitches, press releases, guest posts and media kits. With this content, you can capture media attention and inspire your target audience.
Pressfarm’s PR professionals and expert writers can also help proofread and edit an existing press release for you, in addition to providing insight and advice into the PR industry. Moreover, by providing custom media lists and a database of 1 million+ journalists, Pressfarm can help you connect with the best journalists in your niche. By partnering with Pressfarm, you could launch a PR campaign that boosts your online visibility by helping your brand to feature in relevant search results.
While private companies don’t need to publish their financial statements, it’s important for brand credibility. Publishing this kind of press release is also an opportunity to market your business effortlessly. With the right press release writing team, you can publish a press release that earns you public trust and boosts your company’s credibility. Additionally, by collaborating with expert press release writers, you can ensure that you’ve covered all the essential information in your press release.