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.

Y/E Sep Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2015A 59.8 3.6 0.2 2.7 119.3 N/A
2016A 59.0 4.7 1.6 5.7 56.5 N/A
2017E 76.5 9.5 7.2 16.4 19.6 N/A
2018E 77.5 12.6 10.5 22.0 14.6 N/A

Last updated on 19/07/2017

Latest research

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

Investment summary

Future is acquiring the Home Interest division of Centaur Media, part-funded by a placing of £22m at 250p, for a net cash consideration of £30.24m. This adds a strong new vertical with good margins and attractive cash flow, with potential to drive additional value by adding e-commerce capabilities and internationalising the brands. Our numbers will be formally updated on completion (estimated end July), but provisionally we would expect to be showing a small uplift in EPS in FY17e and around 10% in FY18e. The strategy to build a global media platform business around Future’s high-profile brands, backed with quality content and across multiple revenue streams, is starting to deliver meaningful returns and growth well above the sector average, yet to be reflected in the valuation.

Last updated on 03/08/2017

Industry outlook

Given the shift in business model, magazine circulation figures are a poor guide to Future's markets. Nevertheless, it is relevant that the latest ABC stats show digital circulation reaching 1m in H216 (compared to print totalling 39.5m). Magazine sector reach is being much further boosted by its online/mobile presence, while e-commerce growth rates vary by category, but broadly fall into a range of 15-20% in both the UK and US. Future's quality content is a driver.

Last updated on 03/08/2017

Key management

Peter Allen, Chairman
Zillah Byng-Thorne, CEO
Penny Ladkin-Brand, CFO
Chris Convey, CFO

Company address

Quay House, The Ambury
Bath
BA1 1UA
United Kingdom
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