Future (FUTR)

Business description

Future is an international media group and leading digital publisher. It operates two separately managed brand-led divisions: Media and Magazine.

Investment summary

Future has announced a further acquisition to scale up in the important US market and reinforce its authoritative voice in the music and consumer electronics sectors. Newbay Media is being bought for $13.8m, mainly in cash, and is expected to be earnings enhancing in FY19. This deal, and March’s purchase of five titles from Haymarket, will be added into our FY18 and FY19 forecasts with the interim results in May. Future’s H118 trading has been strong, as expected, with good organic growth from the Media business and promising US progress. We consider that the current rating does not fully reflect the opportunity.

Last updated on 05/04/2018

Y/E Sep Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2016A 59.0 5.2 2.3 9.2 46.7 43.0
2017A 84.4 11.0 8.3 21.0 20.5 15.0
2018E 91.4 16.7 13.6 22.1 19.5 20.8
2019E 92.1 17.9 14.6 23.1 18.6 13.5

Last updated on 20/02/2018

Latest research

Pace stepping up in US

Flash note | Media | 05/04/2018

Adding new verticals

Flash note | Media | 21/03/2018

Stateside opportunity

Update | Media | 08/02/2018

Platform, brands and fans

Outlook | Media | 24/11/2017

Expanding on the Home front

Update | Media | 07/07/2017

Global platform strategy starts to pay

Update | Media | 19/05/2017

e-Commercial

Update | Media | 11/04/2017

Leveraging brands and data

Update | Media | 24/11/2016

Imagining the Future

Update | Media | 12/10/2016

A brighter Future dawns

Initiation | Media | 01/08/2016

Latest video

Executive interview - Future

Industry outlook

As Future migrates its content to digital it becomes inherently more profitable, unlike many other media companies. By buying print assets at modest valuations, it can leverage the brands and content by adding them to its existing proprietary platform. With its data-centric approach, it is in a strong position to drive digital revenues and also to add and grow its e-commerce opportunities. Further high margin revenues can be generated reusing content across channels. A growing events portfolio further increases brand engagement and brings attractive working capital characteristics.

Last updated on 02/03/2018

Key management

Zillah Byng-Thorne, CEO
Penny Ladkin-Brand, CFO

Company address

Quay House, The Ambury
Bath
BA1 1UA
United Kingdom
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