Future full-year profit to beat expectations

(Sharecast News) - Specialist publisher Future said on Friday that thanks to an overall positive start to the year, and despite ongoing macroeconomic uncertainties, it was now expecting full-year profitability to be ahead of current market expectations.
The FTSE 250 company said that in the four months ended 31 January, it had continued to benefit from high levels of online engagement, notably during Black Friday and Christmas.

Revenue in its media division grew strongly, driven by continued momentum in e-commerce and digital advertising.

As it had expected, events, which represents a small portion of its revenue, was still being impacted by Covid-19, while its magazine division performed in line with the trends seen from last year.

Following the integration of TI Media, Future said it was on track to achieve the previously-announced £20m cost synergies.

The group said it delivered a "strong" cash performance in the period, enabling the continued deleveraging of its balance sheet.

Future also confirmed the completion of the acquisition of GoCo Group, which it said would further strengthen its position as a global specialist media and intent platform by extending its price comparison e-commerce capabilities beyond products and into services, and adding financial services as a new content vertical.

As part of the acquisition, former GoCo chief financial officer Alan Burns and former chief executive of GoCo Lee Griffin were joining the Future management team.

An update on the integration of GoCo would be provided at the group's interim results on 19 May, the board said.

Future also said that on 2 February, it completed the acquisition of Mozo for AUD 30m (£16.74m).

It described Mozo as a fast-growing Australian price comparison website focussed on personal finance products, including mortgages, credit, personal loans, banking and insurance.

Mozo's revenues for the year ended 30 June totalled AUD 11m.

The company said the acquisition would combine Mozo's leading financial services insight with Future's expertise in customer acquisition and content creation, creating an "enhanced" brand proposition and monetisation opportunities through its revenue diversification strategy.

"Following the integration of TI Media, we continue to make good progress against our strategy to build the leading specialist global media platform that drives intent, powered by technology and insight with scalable, diversified brands," said Future chief executive officer Zillah Byng-Thorne.

"Price comparison for services is a natural complement in our strategy to enhance and expand our e-commerce proposition and monetisation opportunities beyond product purchase.

"I am therefore delighted we have now completed the acquisition of GoCo, which we are confident will create substantial value for shareholders."

Byng-Thorne said the recent acquisition of Mozo in Australia broadened the company's price comparison brands to a global reach.

"This will enhance our proposition, bringing together its leading financial services insight with our expertise in customer acquisition and content creation, and is aligned with our strategy to operate globally."

Future had already started on the integration of both businesses, Byng-Thorne said.

"Following a robust start to the year, we expect full year profitability to be materially ahead of current market expectations.

"We remain well positioned to continue executing our strategy and delivering on the ongoing growth momentum we have sustained over recent years."

At 0813 GMT, shares in Future were up 10.45% at 2,100.7p.