Bath-headquartered specialist global media group Future has returned to growth after a major refocusing of the business introduced a year ago starts to pay off.
The group, whose portfolio ranges from the Go Compare insurance price comparison website to titles such as Country Life and Total Film, had been hit by the rapidly changing international media landscape and a tougher advertising climate.
That prompted the previously fast-growing group to bring in what it called a Growth Acceleration Strategy (GAS) last December – and while revenue over the full year to 30 September was unchanged at £788.2m, its performance improved in the second half, when it achieved a 5% lift.
Pre-tax profits for the 12 months fell by 25% to £103.2m while its operating profit margin declined by five percentage points to 17%.
Future said the return to revenue growth in the second half of the period had been “driven by the execution of GAS”. The strategy has involved investing in sales and editorial roles, and diversifying and growing revenue per user while reshaping its portfolio.
This has included closing a small number of its print and digital brands, including Broadcasting + Cable magazine in the US, which began life in 1931.
As a result, Future said it now expects to deliver accelerated organic revenue growth in its current financial year.
Future’s share price came under pressure in October when CEO Jon Steinberg, pictured, announced he was to quit just 18 months after being appointed.
Mr Steinberg had been a major figure in the US media sector before taking over from previous Future chief executive Zillah Byng-Thorne.
Ms Byng-Thorne was widely credited with transforming Future from a loss-making mainly UK business into an international group worth around £2bn and with 250 titles in her nine years at the helm.
In comments to Future shareholders accompanying its full-year results, Mr Steinberg said: "The execution of our strategy, combined with our strong financial characteristics, including a flexible cost base and highly cash generative profile, creates further optionality and positions the business well.
"Looking ahead, whilst we remain mindful of the macro environment and the ongoing evolution of the media landscape, we are confident that the ongoing execution of our Growth Acceleration Strategy will drive long-term accelerating organic revenue growth.”
Future’s UK revenue grew by 6% on an organic basis driven by its media portfolio. Go.Compare’s growth hit 28% and its business-to-business titles recorded 2% growth.
However, its business-to-consumer titles suffered a 6% decline in sales as they were impacted by market conditions.
The group’s US revenue fell by 6% on an organic basis, recovering to be flat in the second half.
Digital advertising returned to organic year-on-year growth of 2% in the second half, with a further acceleration in the final quarter.
Future’s share price rose by 9.69% yesterday to 1,075p as investors warmed to the annual results. The shares continued to climb this morning, reaching 1,122p at midday, an advance of 4.37% on last night’s closing price.
