-Full year guidance confirmed
-Audience growth continues into second half
-Who What Wear acquisition provides a new growth driver
Shares in media group Future (FUTR), jumped 6% following the announcement of a trading update which confirmed 2022 full year guidance.
The group has also completed the acquisition of Who, What Wear a leading digital-only US women’s lifestyle publisher.
Future has market leading positions in the UK and the US in content about technology, and depth and strength in video gaming.
However, it’s still early days in terms of profiting from women’s lifestyle interests, fashion and beauty, homes, health and wellness, and financial services.
WOMEN’S LIFESTYLE A NEW GROWTH DRIVER
The acquisition of TI Media in April 2020 for £140 million enabled the group to move into the home and women’s lifestyle segments with brands including Country Life and Women and Home.
Future also owns popular magazines Homes & Gardens and Ideal Home.
The Who What Wear acquisition strengthens Future’s offering in the Women’s Lifestyle segment providing greater scale and scope.
Following the acquisition Future will become the sixth largest fashion and beauty publisher in the US, reaching a third of US audiences on-line.
Adding the Who What Wear offering to Future’s portfolio will help to drive growth by providing access to 12 million website users and 10 million social media users.
Zillah Byng-Thorne, CEO of Future, said: ‘I'm delighted that we have completed the acquisition of Who What Wear, which enhances our leadership position in the Women's vertical, and delivers further scale and reach in North America, as we aim to reach 1 in 2 users online in the US.
‘We continue to see positive momentum in trading with audiences back to growth. We remain confident our diversified strategy will continue to deliver and remain on track for another strong full-year of profitable growth.’
GUDIANCE CONFIRMED
Future’s audience growth declined during the first half, but growth resumed in April.
Today’s update is particularly encouraging because management have confirmed this return to growth has continued into the second half.
The company is reconfirming it is on track to achieve its full year guidance for this year.
EXPERT VIEW
Commenting on today’s trading update Peel Hunt analyst Jessica Pok said ‘Future now trades on a forward price earnings ratio of 9x, down a whopping 60% year to date.
'In our view this fall is overdone. It is encouraging to hear the positive trend in audience numbers. If this persists for the second half we could see outperformance within the Media segment of the group for the year.’
