29th Sep 2023 16:46
(Alliance News) - Future PLC shares surged some 25% on Friday as the magazine publisher calmed investor nerves in the face of tough market conditions.
Future said its adjusted operating profit in the year ended September 30 is expected to be in line with board expectations of GBP254.1 million. In financial 2022, the firm posted adjusted operating profit of GBP271.7 million.
The company owns names including Marie Claire, Country Life, Money Week said that audience numbers have stabilised in the second half of its financial year, noting positive month-on-month momentum in the final quarter.
However, Future said trading conditions overall remain "mixed" with challenges in consumer spending and the digital advertising market.
It said advertising and affiliate product trends are in line with its first half, while its Go.Compare business has seen a boost from "favourable market conditions".
It said magazine revenue has remained stable.
"We are reassured by Future's performance in the face of well-documented macro pressures," analysts at Shore Capital Markets commented.
"More broadly, we remain of the view that Future is well placed to deliver attractive growth."
Shore predicts that between 2024 and 2026, Future's adjusted earnings per share and dividend [er share will expand by 14% and 29%, respectively. The broker believes Future has a "range of positive fundamentals.
Shore explained: "These include: a clear strategic focus on / technological investment in leveraging content to drive ecommerce and digital advertising across an extensive portfolio of B2C brands; the breadth and authority of its specialist content; its impressive reach and ability to deliver high intent / highly qualified and very commercially attractive audiences; strong cash generation and a positive record of identifying, integrating, and adding value to acquisitions - helped by its proprietary tech stack."
By Eric Cunha, Alliance News news editor
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