20th Jul 2020 09:05
(Alliance News) - Football and technology magazines publisher Future PLC on Monday said trading for financial 2020 will be at the top end of market expectations due to strong digital audience numbers, cost controls, and acceleration of synergies following acquisition of TI Media.
Shares in FTSE 250-listed Future were trading 6.2% higher at 1,285.09 pence each in London on Monday morning.
The current consensus range for adjusted earnings before interest, tax, depreciation and amortisation for the year ending September 30 is GBP86.3 million to GBP91.0 million, according to the company. In financial 2019, adjusted Ebitda totalled GBP54.5 million.
Future, which also organises events, attributed the surge in digital audience to a increased consumer shift to digital media during the Covid-19 lockdown. As a result of the strong trading, the company has decided to repay the support received from the UK government's furlough scheme.
The Bath, England-based company also said that the integration of TI Media is progressing in line with expectations, with annual cost synergies of over GBP9 million already secured. The company expects the acquisition to generate GBP15 million per annum in cost synergies within 24 months.
As part of its next phase of delivering cost synergies from the TI Media buyout, Future has commenced a consultation process with TI Media employee representatives about a proposed reduction in workforce.
The Tech Radar and Four Four Two magazines publisher said it continues to expect the synergies to be delivered in line with the original cost-to-achieve ratio. Future had announced the purchase of TI Media for GBP140 million in October 2019.
Chief Executive Officer Zillah Byng-Thorne said: "Building on our strong track record of successfully integrating acquisitions, we are pleased that the integration of TI Media is progressing in line with our expectations.
"Furthermore, the strong group performance we reported at our half-year results has continued and we remain confident of delivering another year of growth within our portfolio and further strategic progress."
By Tapan Panchal; [email protected]
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