Bath publisher warns that profits will be hit by tough trading conditions
Bath publisher Future has warned that its performance will be at the lower end of market expectations as a result of tough trading conditions.
Revenue was flat year-on-year at £404.7m with contributions from acquisitions and favourable foreign exchange rates offsetting expected organic decline.
The magazine and digital publisher said organic revenue was down 10 per cent as a result of the challenging macroeconomic backdrop, including audience decline in a number of markets.
Adjusted operating profit declined three per cent to £130.3m with the top line organic decline partly mitigated by cost saving initiatives.
Statutory operating profit was down five per cent to £83.9m.
The firm said it remains highly cash generative with adjusted free cash flow of £130m representing 100 per cent of adjusted operating profit.
Three acquisitions have been completed since October 2022, adding capability in B2C and B2B markets.
Future said it continues to navigate the tougher macroeconomic backdrop and it expects the first half trends to continue with challenging market conditions impacting audience.
As a result the company expects full year performance to be towards the bottom end of current market expectations.
Chief executive Jon Steinberg said: “I am excited to have joined Future and by the significant opportunity to build on the unique position it has in the digital media landscape.
“In my first six weeks I have been extremely impressed with the depth of talent and energy throughout the organisation and, looking ahead, my priorities will be to further enhance our brand leadership positions, continue to diversify and grow our monetisation opportunities, and maximise value for all our stakeholders.
“The macroeconomic environment remains tough, but we are well positioned to continue to outperform the industry. Our investment in new strategic verticals, coupled with the group’s tech stack and operating model, will create long-term value for our stakeholders.”