ii view: media firm Future plunges by a third

Front covers of Marie Claire at a party hosted by the magazine in Los Angeles. Photo: Frazer Harrison/Getty Images for Marie Claire.

First-half trading update to 31 March

Chief executive Kevin Li Ying said:

“While we are disappointed with the impact of the changes in the search ecosystem on our near-term trading performance, we are making good progress in executing the elements of our growth strategy that are in our control. 

“The board remains determined to drive a return to growth and to unlock the substantial value from our unique portfolio of assets.”

• Invest with ii: Open a Stocks & Shares ISA | ISA Investment Ideas | Transfer a Stocks & Shares ISA

ii round-up:

Magazine and Go Compare owner Future (LSE:FUTR) today warned of a lower profit margin as changes in the Google search engine hindered advertising sales. 

Reduced website traffic due to Google changes impacting the revenue mix is now expected to see the profit margin for the first half to late March of between 24% and 25%. That’s down from the 28% achieved in 2025 and heading in the wrong direction from management’s 30% target. 

Shares in the £250 million company plunged by as much as a third in UK trading having already sunk by a fifth so far in 2026. Advertising company WPP (LSE:WPP) is down by close to a third year-to-date. The FTSE Small Cap index has fallen by around 5% over that time.   

Future’s magazine brands include Country Life, Marie Claire and PC Gamer. Group revenues come broadly come from advertising, magazine subscriptions, media events and affiliate sales, which is when Future promotes and sells customer products or services on sites like Amazon in exchange for a commission on each sale.

The owner of over 170 specialist media brands including Women’s Own and Golf Monthly now expects second-half organic revenues to decline year-over-year by a low single-digit percentage, leaving annual profit margin at 25-27%.

Analysts had been expecting full-year revenue and adjusted profits of £738 million and £221 million respectively, little changed from 2025’s £739 million and £223 million.

Future has been pursuing a Growth Acceleration Strategy, readjusting the business portfolio, investing in the group’s various platforms and cutting costs.

Ongoing strong cash generation is expected by management to help reduce group debt during the second half, with the falling share price triggering an acceleration of the company’s existing £30 million share buyback programme.  

First-half results are scheduled for 14 May. 

ii view:

Started in 1985, Future creates specialist media content which is then distributed via methods including websites, magazines, newsletters and live events. The consumer, or B2C business generated most profits in the 2025 financial year at 58%, followed by Go Compare at 36%, and the B2B business the balance of 6%.  

For investors, the importance of metrics set by Google, owned by tech giant Alphabet, is clear to see. The impact of AI on media content production in the years ahead is difficult to predict. Soaring energy prices pressuring consumer incomes could reduce subscription demand, while advertising sales have always been sensitive to economic health, with the ongoing war in the Middle East making the outlook even tougher to predict.   

• 10 hottest ISA shares, funds and trusts
• Five AIM income stocks for your ISA in 2026
• Four tips for ISA investors to navigate stock market volatility

To the upside, a refreshed management team is pursuing initiatives including driving use of the group’s specialist media content for AI providers. Bolt-on acquisitions to assist growth have recently included SheerLuxe, a Women's fashion and lifestyle publisher for the young. Rising energy prices and potentially more pressured consumers may increase demand for its price comparison Go Compare business, while the group’s portfolio of known brands could offer attraction to a potential buyer. 

In all, while cash generation, a forecast dividend yield close to 5% and dramatic share price decline may attract speculative investors, falling sales and profits and a continued shift in the audience derived from Google search are firm reasons for caution. 

Positives: 

• Diversity of titles and business revenues
• Strong brand names

Negatives:

• Uncertain economic outlook
• Advertising revenues can prove volatile

The average rating of stock market analysts:

Buy