Shares in Bath-based media group Future soared by more than 30% today after it said it was overcoming any impact on the business from the coronavirus outbreak.
As a result, the group – whose 140 titles range from TechRadar and PC Gamer to Classic Rock and FourFourTwo – expects its half-year results due at the end of this month to be in line with its previous announcements. 
The upbeat statement to the London Stock Exchange triggered a 30.8% rise in its share price in trading this morning – taking it to 785p and making up some of the ground lost earlier this week when global stock markets collapsed in a panic over the coronavirus pandemic.
Less than a month ago Future’s share price had been just above £14.
Future said the six-month period had started well with “exceptionally strong” digital audience numbers boosting its eCommerce and digital advertising.
This meant that, despite delaying The Photography Show and The Homebuilding & Renovating Show, which were due to take place at the NEC in Birmingham later this month, until later this year and cancelling a number of smaller events, its half-year results were likely to be in line with directors’ expectations.
Today’s statement continued: “The recent weeks have been unprecedented. However, our business has continued to trade robustly, with the diversified strategy working well. As of today, we have seen limited impact on our digital revenues.”
Future said while it had suffered declines in sales of some titles in its magazine portfolio from travel outlets year-on-year growth had continued in other stores which was partly offsetting the impact.
“Therefore, based on our visibility of our key metrics, we continue to expect trading to remain in line with our previous expectations. However, prudently because of the increased volatility, we have implemented some profit protection measures.” 
The business continued to be highly cash generative, the statement said. As at the end of the half year, it had a cash balance of between £47m-£53m.
Today’s announcement came a few days after Future was told by the Competitions and Markets Authority (CMA) that last year’s £140m takeover of Country Life and Chat publisher TI Media did not does not raise competition concerns. However, the CMA told Future that it was subject to the sale of three closely competing products.
Future could now be forced to offload some of its photography, football and technology titles.
Announced last October, the deal takes Future’s magazine and website portfolio into new areas such as the wine, golf, equestrian, TV listings and gardening while strengthening its position in cycling, consumer technology and country sports.
The takeover – Future’s largest in a string of acquisitions over recent years – also gives it a much larger female readership, with titles such as Marie Claire UK, Woman and Home, and What’s On TV among TI’s 40 brands.
The CMA said after completing its initial Phase 1 investigation, it found that Future and TI compete closely in photography and football magazines and technology websites. The relevant titles that TI Media own in these spaces are WorldSoccer, Amateur Photographer and the technology website Trustedreviews.com.
Future owns football magazine Four Four Two and photography magazine Digital Camera, while its technology websites include Tech Radar and T3.
Future said it was now in discussion with the CMA on the potential remedies to be offered to mitigate these competition issues “with a view to agreeing a basis on which it can close the transaction as soon as practicable”.
London-based TI’s other titles include Decanter and Wallpaper*.
The CMA said there was “limited overlap” between the two publishers overall, meaning the deal mostly presents no competition concerns.
But it was concerned that readers of football and photography magazines and those who use or advertise on technology sites could “face higher prices or lower quality products” as the two publishers combined would hold a “very strong position” in these markets.
CMA senior director of mergers Colin Raftery said: “Online content is having a major impact on the publishing industry, but specialist magazines still sell millions of copies each year and are highly valued by their readers because of the breadth and quality of their content.
“If Future were to hold all of these titles, there’s a real risk that these readers of football and photography magazines could end up paying more for lower quality products because of the lack of choice in the market.”
At the time it announced the acquisition, Future said cost savings would come in at £15m a year within two years with a significant proportion to be achieved in first full financial year following completion of the acquisition.
TI Media had revenues of £201.5m and adjusted earnings of £28.7m in the year to May 31.
At the time Future CEO Zillah Byng-Thorne said: “This acquisition provides an outstanding opportunity to accelerate Future’s strategy and to bolster its growth levers.”
