Future PLC (LON:FUTR) is building and widening its revenue streams based on strong global brands and on a scalable delivery platform. Growth of revenues in categories such as eCommerce, events and digital advertising resulted in broadly maintained group FY16 revenues, while the margin has started to build, helped by operating leverage. The Imagine purchase, post year-end, brings further scale and efficiency. The lengthening record of delivery against expectations and the premium projected earnings growth are making the multiple increasingly attractive.
Media growth counters print decline
Key brands within the Media division (41% group), such as techradar.com and PC Gamer, helped drive segmental revenues up 14%, with the US now representing 44%. Data drawn from online traffic is used to inform and optimise advertising and content, with the eCommerce and events building rapidly. Future has set up a media services operation to drive monetisation of IP in the business, providing content and through licensing, franchising and syndication. Magazine revenues reduced 10% (59% of group), outperforming the UK market in magazines for leisure interests (ABC Market Summary Report). Acquisitions, including Imagine, have made a step-change to the scale of the business and added new verticals.
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