Future shares fall on revenue growth caution; H1 profits jump
shares fell on Friday as the specialist publisher cautioned that it expected a low single-digit decline in full-year organic revenue amid economic uncertainty.
The company, which owns the Go.Compare price comparison website, posted a 21% increase in pre-tax profit to £56.6m for the six months to March. Operating profit rose 8% to £69.1m, driven by lower exceptional costs, and it also a new £55m share buyback.
Revenue fell 3% to £378.4m, as growth in the first quarter was offset by uncertain macroeconomic sentiment in March, impacting US direct advertising, although this recovered in April.
"At this stage, given ongoing macroeconomic uncertainty, the group believes it is prudent to adopt a more cautious view on the second half and expects a low single-digit decline in full-year organic revenue," the company said, adding that forex headwinds were also an issue.
In the business-to-consumer division - Future's largest - organic revenue was flat in the period with "excellent" performance in magazines offset by decline in media, driven by digital advertising.
Revenues at Go.Compare fell 1% as the volume of car insurance quotes decreased, although revenue from non-automotive insurance quotes surged by10%.
Future said it continued to expect to deliver a stable adjusted operating margin of 28% alongside continued strong cash generation.
Reporting by Frank Prenesti for Sharecast.com
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