Future PLC (LSE:FUTR) expects full-year operating profit in line with expectations despite mixed trading conditions.
The platform for specialist media, behind brands such as Marie Claire and Country Life, said it was a resilient performance despite continued macroeconomic volatility impacting the sector.
Audience numbers have stabilised in the second half and the group has had positive month-on-month momentum in the final quarter, it said.
However, Future said overall trading conditions remained mixed, with challenges in consumer spending and the digital advertising market.
As a result, advertising and affiliates product trends are broadly in line with the first half, as expected, despite a robust Prime Day in July.
Go.Compare revenue has accelerated in the second half, reflecting favourable market volumes with consumers looking for value, while magazine revenue has remained resilient, it added.
Foreign exchange has been a headwind in the second half, given currency movements in the period, Future said.
The shares were up 15% in the first hour of trading on Friday and 22% by the afternoon to 876p, continuing the improvement since June saw them sink to near five-year lows below 640p.
Analysts at broker Peel Hunt said there “no surprises with the trading update today for Future, if anything a relief that there is not another downgrade for the company.”
Audience numbers stabilising was pleasing, they added, but "all eyes" will be on the 2024 outlook, for which there is not likely to be any commentary until the prelims.
"However, the stabilisation of audience trends is a key positive for the group as we head into the new year. The share performance has continued to be weak, down >40% this year after >60% in 2022."
Broker Shore Capital said it was also "reassured" by the performance in the face of macro pressures.
With some investors worried about the impact of artificial intelligence (AI) within the technology and digital media space, Shore Cap said, "the company is confident that it can harness this technology to drive growth, improve its offering to advertisers, ecommerce partners and consumers, and to unlock efficiencies."