Future PLC (FRA:FNWA) (H1 2025) Earnings Call Highlights: Navigating Revenue Challenges with ...

In This Article:

  • Revenue: GBP378.4 million, down 3% year on year on a reported basis.

  • Organic Revenue Performance: Down 1% in the first half.

  • Adjusted Operating Profit: GBP100.7 million with a margin of 27%, flat year on year.

  • Adjusted EPS Growth: 4% increase.

  • Cash Generation: 111% of adjusted operating profit.

  • Net Debt: GBP241 million, with leverage at 1.1%.

  • Shareholder Returns: Over GBP43 million returned in the period, with a new GBP55 million share buyback program announced.

  • B2C Performance: Flat year on year; magazines grew 1% organically.

  • Go.Compare Revenue: GBP95 million, declined 1%.

  • Gross Margin: 73%, up 1% point.

  • Sales, Marketing, and Editorial Costs: Increased by 2%.

  • Admin Costs and Other Overheads: Decreased by 10%.

  • Cash Conversion: 111% of adjusted operating profit, generating GBP119 million of cash inflows.

Release Date: May 16, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Future PLC (FRA:FNWA) has announced a new share buyback program, returning over GBP43 million to shareholders in the first half alone.

  • The company has successfully slowed the rate of decline in its magazine segment, achieving 1% organic growth in H1.

  • Future PLC's investment in AI-enhanced recirculation has increased brand engagement and ad volume without additional costs.

  • The company has launched T3 Germany using AI, expanding its reach with minimal editorial input and no incremental costs.

  • Future PLC has maintained a stable adjusted operating profit margin of 27%, demonstrating disciplined cost management.

Negative Points

  • Future PLC experienced a 3% year-on-year decline in revenue, with organic performance down 1%.

  • The US digital advertising market faced uncertainty, impacting revenue in March and contributing to a 5% decline in Q2.

  • The company's B2B segment continues to be challenged by the difficult enterprise tech market.

  • Future PLC's audience sessions were down 4% in the first half, partly due to temporary issues with Google Discover traffic.

  • The company has seen a slight loss in market share in the car insurance segment, dropping from second to third place.

Q & A Highlights

Q: Are there any specific initiatives around monetization of audiences on social media, and how is the rollout of Quisly progressing? A: Kevin Li Ying, CEO: Social media acts as an enabler for our audience, driving branded content campaigns, monetization, and brand awareness. Quisly is fresh, and we have a roadmap for integration and growth. We will provide updates in due course. Our mission remains value creation for shareholders through innovation and efficient monetization.