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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 is taking a major step towards realising its US ambitions with the acquisition of Purch for $132.5m/£100.1m, fully funded by a rights issue of 3 new for 4 existing shares at 303p. The purchase fits neatly with Future’s existing media brands and tech-enabled culture and expands the US revenue base to around half of group (historic pro-forma). The purchase price represents 2.1x Purch’s CY17 revenues, 13.1x EBITDA, and management expects the transaction to be materially enhancing to earnings in its first full year, FY19. On the ex-rights price and indicative forecasts, the shares will be trading on an undeserved discount to peers.

Last updated on 18/07/2018

Y/E Sep Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 59.0 5.2 2.3 9.2 57.6 N/A
2017A 84.4 11.0 8.3 21.0 25.2 N/A
2018E 110.0 18.0 14.4 22.9 23.1 N/A
2019E 124.5 21.3 17.4 26.0 20.4 N/A

Last updated on 20/06/2018

Latest research

US Purch-ase

Update | Media | 18/07/2018

Scaling benefits coming through

Update | Media | 17/05/2018

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 29/06/2018

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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