Future Plc shares fall after company issues cautious outlook on revenue and profit

Published 16/05/2025, 09:26

Investing.com -- Shares of Future Plc (LON:FUTR) fell more than 6% on Friday after the company forecast a cautious outlook for the remainder of fiscal 2025, citing macroeconomic uncertainty and foreign exchange headwinds. 

Revenue for the six months ended March 2025 declined 3% to £378.4 million, from £391.5 million a year earlier. 

The company said the drop reflected a 1% organic decline, adverse currency movements, and previously announced business closures. 

While organic growth was delivered in the first quarter, this was offset by weaker performance in March due to softening U.S. direct advertising.

Adjusted operating profit fell 5% to £100.7 million, with the adjusted operating margin holding steady at 27%.

Statutory operating profit rose 8% to £69.1 million, up from £63.7 million, mainly due to reduced adjusting items and lower share-based payments.

The company expects full-year organic revenue to decline in the low single digits. It maintained guidance for a stable 28% adjusted operating margin and continued strong cash generation. 

Future said U.S. direct advertising returned to growth in April, but macroeconomic conditions remain uncertain. A trading update is planned for July.

The B2C division, the company’s largest, reported flat organic revenue. Magazines grew 1%, while Media was flat overall, with a 3% rise in the first quarter offset by weakness in March. 

Go.Compare revenue fell 1%, as car quote volumes declined against a strong prior-year comparison, though non-car insurance revenue rose 10%.

B2B revenue declined 13% organically, driven by tech enterprise, while other verticals including financial services and education showed growth.

Adjusted diluted earnings per share rose 4%, supported by lower interest and the impact of share buybacks. 

Adjusted free cash flow was £111.5 million, down from £126 million. Cash generated from operations totaled £115.9 million.

The company closed several brands and acquired RNWL in March for £2.8 million, with a performance-based earn-out. 

In May, it announced the £0.7 million acquisition of Kwizly, which provides audience engagement tools.

£43.2 million was returned to shareholders, including £39.5 million in buybacks. Net debt stood at £241.2 million, with leverage unchanged at 1.1 times.

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