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Shares of Future rose this morning after the magazine’s publisher said it expected its annual profit to be “significantly” higher than market expectations.
The media group, which owns titles such as Country Life, Four Four Two and Tech Radar, said today it continued to perform well in the second half of the year despite challenges posed by the pandemic.
Future said its media division saw strong digital ad revenue as well as growth in its e-commerce product affiliate revenue, including Prime Day in June.
Its magazines division performed in line with expectations, largely thanks to weak comparators at the height of the pandemic last year.
In May, the company grabbed the U.S. edition of Marie Claire – a move it said would increase its monthly reach to 30 million users.
London-listed Future added that the integration of Go Compare, which it bought for £ 600million last year, is progressing well and is on track to achieve savings of £ 15million sterling.
Future said his cash generation was strong and that he expected annual profit significantly higher than current expectations, despite continued uncertainty.
William Ryder, equity analyst at Hargreaves Lansdown, said a dividend increase “should not be ruled out, especially with the group talking about cash generation and synergies through the GoCo acquisition.”
“However, the acquisition-driven growth strategy will always require more investment, so any additional returns to shareholders are likely to be modest.”
Managing Director Zillah Byng-Thorne said, “We are delighted that the group’s strong performance continued throughout the period, which is a testament to the strength of our diverse revenue streams and global reach. “
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