GICS Sector : Communication Services
Future plc, together with its subsidiaries, publishes content for technology, games, TV and entertainment, women's lifestyle, real life, music, creative and photography, sports, home interest, and B2B sectors primarily in the United States and the United Kingdom.It operates through Media and Magazine segments.The Media segment provides e-commerce, digital advertising, events, lead generation, newsletters and CRM, and digital licensing services.
Future's FY '25 revenue was GBP 739 million, down 6% year-on-year, with organic performance down 3%. Adjusted operating profit was GBP 205 million, reflecting a 28% margin, flat year-on-year. The actual EPS came out at '0.4667', missing estimates at '0.682'. The company generated good cash flows, with 86% of AOP and 96% underlying, and a strong balance sheet with leverage of 1.3x. A 5-fold increase to the ordinary dividend and a fifth share buyback program have been announced, with GBP 100 million returned to shareholders in the period.
Publication Date: Dec -07
The company's digital advertising revenue was impacted by AI-driven search trends, but only 16% of the business is directly tied to sessions. Direct digital advertising revenues increased to 68% of total advertising, with higher yields than programmatic. B2C revenue was down 2%, Go.Compare down 5%, and B2B down, but showing signs of improvement. Magazines performed strongly, flat year-on-year. E-commerce was a mixed bag, with a strong peak trading season, but a decline in unique page views in H2.
Future is developing new revenue streams to drive growth, focusing on direct audience relationships. The company expects to maintain a strong cash performance, with cash conversion around 95% going forward. For the FY '26 outlook, Future expects modest revenue growth in line with current consensus and an EBITDA margin of 30%. Analysts estimate next year's revenue growth at 1.0%. The company's growth guidance of 2-4% is driven by direct ads, e-commerce, B2B, and Go.Compare.
Future's current valuation metrics are as follows: P/E Ratio at 8.23, P/B Ratio at 0.64, P/S Ratio at 0.78, EV/EBITDA at 4.14, and Dividend Yield at 0.54%. The company's ROIC is 6.98%, and ROE is 7.9%. The Net Debt / EBITDA ratio is 1.31. Given the current valuation, it is essential to assess whether the market has priced in the expected growth and returns.
Future's CEO highlights the company's data-first platform, which monetizes high audience engagement powered by technology and enabled by trusted specialist brands. The company has 175 brands, giving it scale to leverage its tech platform in multiple ways. Future's strategy focuses on growth, returning capital to shareholders, and investing in bolt-on acquisitions that align with its goals. The company is confident in its ability to deliver on its strategy and create long-term value for shareholders.
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Future plc's media segment growth is driven by increasing demand for digital content, strategic acquisitions, and expansion into new markets. The company's focus on niche audiences and diversified revenue streams also contribute to its growth. Additionally, investments in digital marketing and e-commerce capabilities enhance its online presence, further fueling growth.
Future plc's magazine segment growth is driven by increasing demand for specialist titles, strategic acquisitions, and expansion into digital media. The company's focus on niche markets, such as technology and gaming, has also contributed to growth. Additionally, investments in e-commerce and online platforms have enhanced customer engagement and revenue streams.
Future plc provides technology products and services, including software, hardware, and IT solutions to businesses and individuals.
Future plc offers gaming products and services, including gaming hardware, software, and online communities.
Future plc provides creative products and services, including design software, photography equipment, and creative online communities.
Future plc offers music products and services, including music gear, software, and online music communities.
Future plc provides home interest products and services, including home decor, gardening, and DIY solutions.
Future plc offers sports products and services, including sports gear, fitness software, and sports online communities.
Future plc provides film and video production products and services, including camera equipment, software, and online communities.
Future plc offers photography products and services, including camera equipment, software, and online photography communities.
The threat of substitutes for Future plc is medium due to the presence of alternative products and services in the market.
The bargaining power of customers for Future plc is high due to the availability of alternative products and services, and the high demand for quality products.
The bargaining power of suppliers for Future plc is low due to the company's strong relationships with its suppliers and the availability of alternative suppliers.
The threat of new entrants for Future plc is medium due to the moderate barriers to entry and the availability of resources and technology.
The intensity of rivalry for Future plc is high due to the presence of strong competitors and the high demand for market share.
| Value | |
|---|---|
| Debt Weight | 27.94% |
| Debt Cost | 7.35% |
| Equity Weight | 72.06% |
| Equity Cost | 7.35% |
| WACC | 7.35% |
| Leverage | 38.78% |
Value: 2.8
Growth: 4.6
Quality: 7.8
Yield: 6.2
Momentum: 8.0
Volatility: 5.0
1-Year Total Return ->
Value: 6.6
Growth: 2.6
Quality: 4.1
Yield: 4.4
Momentum: 9.0
Volatility: 6.0
1-Year Total Return ->
Value: 6.0
Growth: 7.4
Quality: 7.0
Yield: 5.6
Momentum: 0.5
Volatility: 3.3
1-Year Total Return ->
Value: 4.1
Growth: 6.7
Quality: 6.7
Yield: 1.2
Momentum: 7.5
Volatility: 1.7
1-Year Total Return ->
Value: 8.9
Growth: 7.3
Quality: 6.9
Yield: 0.6
Momentum: 1.0
Volatility: 2.3
1-Year Total Return ->
Value: 5.6
Growth: 5.9
Quality: 5.0
Yield: 5.6
Momentum: 0.5
Volatility: 2.7
1-Year Total Return ->