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Highlights
- Future PLC shares decline nearly 5% following confirmation of full-year results aligning with market forecasts.
- The company is actively optimizing its portfolio by closing several low-growth assets, including print magazines and an external video production unit.
- CEO Jon Steinberg emphasizes progress in growth strategy and stabilizing online audience trends.
Overview
Shares in Future PLC (LSE:FUTR), owner of brands like Marie Claire and Go-Compare, fell almost 5% after the company announced that its results for the current financial year will align with market forecasts. This update comes as Future begins to streamline its operations, focusing on improving overall performance by shedding non-core and low-growth assets.
During the fourth quarter of its financial year ending September 30, the FTSE 250-listed publishing group initiated the closure of various units, including a small number of print magazines, websites, an external video production unit, and specific events. These actions are part of a broader "portfolio optimization" strategy, which is expected to eliminate approximately £15 million in annualized revenue from low-margin areas.
Jon Steinberg, the company’s CEO who took over from Zillah Byng-Thorne in April of last year, highlighted that the growth acceleration strategy launched in December has yielded positive outcomes. He noted a return to organic growth and a stabilization of online audience trends, both of which suggest that full-year performance will meet market expectations.
Despite challenges in the broader media landscape and evolving search market dynamics, Steinberg stated that Future's robust cash-generative profile and flexible cost structure position the company well for the future.
Broker Peel Hunt projects a revenue consensus of £786 million and adjusted operating profit of £220 million for the financial year. Looking ahead, the broker anticipates a slight reduction of 1-2% in adjusted operating profit, excluding foreign exchange adjustments, reflecting the impact of recent disposals.
Amidst a challenging trading environment for publishers, Peel Hunt believes Future is performing relatively well, noting stabilizing audience levels and a return to organic growth. The recent appointment of Sharjeel Suleman as CFO is expected to further contribute to stability in the company's financial outlook.
