- Future
- 31 March 2026 09:39:07
Source: Sharecast
In a pre-close trading update for the six months to the end of March, the magazine publisher said group revenue was expected to be broadly in line with management's expectations. However, the EBITDA margin for the first half is now expected to be between 24% and 25% driven by the revenue mix.
The company said that while it was expecting continued shifts in the audience derived from Google search, these have been more pronounced than anticipated. "This is driving lower year-on-year sessions, negatively impacting higher-margin programmatic advertising and ecommerce revenues and has also led to PPC (pay per click) cost inflation across the industry," it said.
Looking ahead, Future said audience sessions will remain volatile and it is taking a cautious view for the balance of the year.
The company said the benefits of its strategic initiatives and growth in B2B and Go.Compare are being offset by the continued decline in programmatic advertising and ecommerce revenue.
It now expects second-half organic revenue to decline year-on-year by a low single-digit percentage and as a result, the EBITDA margin for the year is expected to be 25% to 27%, down from previous guidance of 30%.
Chief executive Kevin Li Ying said: "Whilst 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. This includes a laser focus on driving the platform effect to optimise monetisation across our brands through our Google Zero strategy and leveraging AI as a new source of revenue through products like Future Optic.
"The board remains determined to drive a return to growth and to unlock the substantial value from our unique portfolio of assets."
At 0935 BST, the shares were down 28% at 280p.
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