In This Article:
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Revenue: GBP788.2 million, flat year on year on a reported basis; 1% organic growth.
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Adjusted Operating Profit: GBP222.2 million with a margin of 28%.
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Cash Conversion: 100% of adjusted operating profit.
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Net Debt: GBP256.5 million with a leverage of 1.1.
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Shareholder Returns: GBP69 million returned through buybacks; new GBP55 million buyback announced.
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UK Revenue Growth: 6% organic growth, 8% in the second half.
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US Revenue Decline: 6% organic decline; digital ad growth of 2% in H2, 6% in Q4.
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B2C Revenue: GBP523 million, 66% of the group; 6% organic decline.
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Go.Compare Revenue: GBP203 million, 28% growth; 25% of group revenue.
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B2B Revenue: GBP62 million, 2% growth.
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Gross Margin: 71%, down 1 percentage point.
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Sales, Marketing, and Editorial Costs: Increased by 11%.
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Admin and Overhead Costs: Increased by 8%.
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Magazine Revenue: GBP260 million, 5% secular decline.
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E-commerce Revenue: Down 9% year on year; 12% growth in H2.
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Dividend: Maintained at 3.4p.
Release Date: December 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Future PLC (STU:FNWA) returned to organic growth with a 5% increase in the second half of FY24, driven by the growth acceleration strategy.
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The company demonstrated strong cash generation, with a robust cash conversion rate of 100% of adjusted operating profit.
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Future PLC announced a new share buyback program for up to GBP55 million, following the return of GBP69 million to shareholders through previous buybacks.
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Go.Compare, a significant part of Future PLC's portfolio, showed strong performance with a 28% revenue growth and increased market share in various verticals.
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The company has made strategic investments in editorial talent and digital advertising capabilities, leading to increased content output and improved digital ad growth in the US.
Negative Points
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The US segment experienced a 6% decline in organic revenue due to challenging market conditions, although there was some recovery in digital ad growth in the latter part of the year.
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B2C revenue declined by 6% on an organic basis, impacted by challenging advertising conditions and consumer pressures on e-commerce.
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The magazines business continues to face a secular decline, with a 5% decrease in revenue, despite efforts to improve content and pricing.
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Future PLC's adjusted operating margin decreased to 28% from 32% in FY23, influenced by planned investments and inflationary pressures.
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The company faces ongoing challenges in optimizing its portfolio, having exited GBP15 million of revenue from underperforming assets, indicating a need for continuous strategic adjustments.