Publishing group Future (FUTR) dipped 1.5% to £19.23 amid wider market weakness as it announced its latest acquisition - US digital entertainment publisher CinemaBlend.
The financial details of the deal have not been disclosed but the website generated revenue of $3.1 million in 2019, up from $2.7 million the previous year, and according to Future has seen significant growth in 2020.
The site provides a discussion platform for films and TV shows, both on streaming services such as Netflix and linear TV like HBO.
The acquisition will expand Future’s reach of 46 million online users in its TV & film and games & entertainment verticals, particularly in the US, the company said.
Chief executive Zillah Byng-Thorne added: ‘CinemaBlend is a great cultural fit for Future, producing content we are passionate about.’
Future’s model is built on acquiring specialist titles cheaply and plugging them into its existing platform in order to generate revenue from their content and brands through a mix of digital advertising, e-commerce and getting readers to click through to partnered retailers and events.
Because it has been well-positioned for an increased shift to consumer content online in the pandemic both its financial and share price performance has been strong.
A trading update in early September revealed full-year profit would be ‘materially’ ahead of expectations.
The shares continue to trade close to all-time highs and have nearly quadrupled from the lows seen in March.
