A crucial way to communicate your financial performance to investors and stakeholders is through a financial press release. The Securities and Exchange Commission (SEC) mandates that publicly held businesses disclose their financial performance on a quarterly basis, making it a legal requirement for companies registered under the SEC.
There are various methods companies can employ to release their financial statements, such as newsletters or website publications. However, one of the most impactful ways to share your business’s financial performance is through a financial press release.
Media outlets often select a few companies to feature in their financial reports, with the remaining companies typically appearing in reputable publications like the Wall Street Journal or Dow Jones Newswire. As television, radio, and print media have limited space and time slots, not every company can be highlighted in major outlets.
While public companies are obligated to provide financial press releases, private companies are not required to disclose their financial statements. This applies even to private companies of substantial value. Consequently, when a private company issues a financial press release to media outlets, it tends to garner attention due to its rarity. Demonstrating transparency through a financial press release is an excellent way to foster trust among the public, attracting potential investors, business partners, and clients to your business.
Writing a financial press release
Here are some tips for writing an effective financial press release in 2023:
1. Start with key details
When crafting a press release, it’s crucial to remember that you are competing for limited space with other companies. Begin by providing essential information that captures the attention of finance journalists. Newsworthy stories tend to secure media coverage, such as companies experiencing significant profits or losses in the previous quarter. Clearly highlight why your financial press release matters to the public, increasing your chances of media coverage.
“Bills Department Store reports a remarkable 30% increase in revenue during the third quarter, demonstrating exceptional sales growth and creating employment opportunities.”
This press release example emphasizes why the news matters to the public and is likely to be considered newsworthy. It’s important to note that significant losses can also capture media attention because they directly impact the public. A loss signifies a struggling company with potential job losses, adverse effects on the economy, and the possibility of auctioning. Although it may be challenging to make such an announcement, people will want to read about it.
2. Use the proper format
Financial press releases follow a distinct format that differs from regular press releases. It is crucial to maintain credibility for your business by adhering to this format. Working with PR experts can ensure your press release follows the correct structure. A skilled press release writer will know which figures to highlight, discuss your company’s revenue, dividends, and shareholder earnings, and present the information positively, even in the case of losses.
For public companies, the press release should include discussions on the price per share, the impact on staff and the local community, as well as any employment opportunities or job losses. Including a thank you note for the best and most loyal employees can also add a nice touch to your press release.
Furthermore, comparing the current financial report to previous ones is essential. This includes highlighting the performance of the previous quarter alongside the current quarter.
3. Include tables
In financial press releases, it is essential to include tables to facilitate comparisons of the company’s financial performance across different quarters. These tables provide valuable insights for journalists, editors, investors, and stakeholders. Financial press releases typically contain multiple tables. The first table showcases the company’s performance in the previous quarter and annual earnings. The second table presents the current financial performance, including price per share and dividends.
While regular press releases typically do not exceed one page, financial press releases can extend to three pages due to the inclusion of tables and supporting data. Working with an expert can help condense the release and make it more engaging for readers.
4. Review the press release
Before sending out the press release, conduct a thorough review. Involve your legal team, PR team, and investor relations team in the process to ensure accuracy and cohesion of information. Avoid any errors, whether grammatical or financial, as inconsistencies can damage the company’s credibility in the public eye.
5. Hire experts
Writing a financial press release requires expertise and precision. It is essential to have skilled PR writers, copy editors, and financial experts on your team. If you lack these resources, consider hiring professionals who can help you craft engaging press releases that capture media attention and inspire your target audience.
PR agencies like Pressfarm specialize in turning financial information into newsworthy content. Their PR professionals and expert writers can create engaging email pitches, press releases, guest posts, and media kits that effectively communicate your financial performance. They can also proofread, edit, and offer valuable insights into the PR industry. With custom media lists and access to a database of over 1 million journalists, Pressfarm can help you connect with top journalists in your niche, enhancing your online visibility and brand recognition.
While private companies are not legally obligated to disclose their financial statements, choosing to publish a financial press release can have significant benefits beyond mere compliance. It becomes a proactive step towards establishing and solidifying brand credibility, showcasing transparency, and fostering a sense of trust among investors, business partners, and the general public.
By collaborating with expert press release writers who possess the knowledge and expertise to craft compelling and informative content, you can ensure that your press releases are meticulously crafted to resonate with your target audience. These professionals can help you navigate the complexities of financial reporting, distilling complex financial information into concise and engaging language that effectively communicates your company’s performance. With their assistance, you can present your financial data in a manner that is both accurate and impactful, captivating the attention of readers and enhancing the overall credibility of your brand.
By leveraging the expertise of professionals, you optimize your financial press release, allowing it to serve as a powerful marketing tool that effortlessly promotes your company’s achievements and strengths. With their support, you can confidently publish press releases that not only comply with industry standards but also captivate your target audience. In this way, you can make a lasting and positive impression in the competitive landscape of financial communications.