Future’s profit plunges as group strategy stumbles
Shares in media company Future plc tanked 20 per cent on Thursday morning after it said its full-year revenue dropped to £789m, down four per cent from last year, due to poor performance in the US and a difficult ad market.
The London-listed company, which specialises in media and digital business solutions, reported its media revenue fell by 13 per cent, “reflecting a challenging advertising market.”
US revenue plunged by 19 per cent from 2022, which the firm said was due to it being less advanced on the strategic execution compared to the UK business, which fell four per cent.
Profit before tax plunged 19 per cent to £138m.
Future’s chief executive, Jon Steinberg, said: “Our Growth Acceleration Strategy leverages Future’s inherent strengths, strong financial characteristics and unique proposition, making active investments in targeted areas where we have clear growth opportunities.
“We are excited about executing on this strategy which is focused on growing a highly engaged and valuable audience, diversifying and increasing revenue per user, and optimising our portfolio.”
The strategy includes a two-year investment programme of £25m-£30m to “ensure Future is well-positioned to capitalise on future opportunities in its attractive and growing markets.”
Future said it expects to return to low single-digit revenue growth at the end of next year.
In a separate announcement this morning, Future said it is searching for a new chief financial and strategy officer as its current one steps down.
After over eight years at the group, Penny Ladkin-Brand, has said she will step down later next year. Future is conducting an external search to replace her, with a further announcement to be made soon.