Future PLC (LSE:FUTR) has cut its full-year revenue forecast after a downturn in advertising in March weighed on performance in the first quarter of 2025, prompting the media group to take a more cautious view for the remainder of the year.
The London-listed publisher of PC Gamer and Homes & Garden said it now expects a low single-digit decline in organic revenue for the full year, citing continued macroeconomic uncertainty and currency headwinds.
The downgrade follows a weaker end to the first quarter, when US direct digital advertising was hit by softer sentiment.
Revenue for the six months to 31 March fell 3% to £378.4 million, including a 1% organic decline, with the remainder attributed to foreign exchange effects and previously announced brand closures.
Adjusted operating profit declined 5% to £100.7 million, while free cash flow fell 12% to £111.5 million. The adjusted operating margin held steady at 27%.
Future said it delivered organic growth in the first quarter, but performance was dragged down by the impact of March’s advertising slowdown.
The group’s largest division, B2C, saw flat organic revenue overall, with a 1% gain in magazine revenues offset by lower media income. Media revenues rose 3% in the first quarter but were affected by the March downturn.
The Go.Compare price comparison arm reported a 1% drop in revenue, as expected, amid a slowdown in car insurance quotes, though non-car products grew 10%.
Business-to-business revenue declined 13% on an organic basis, with weakness in the tech enterprise sector partly offset by growth in financial services and education.
Statutory operating profit rose 8% to £69.1 million, helped by lower adjusting items and reduced share-based payments. Diluted earnings per share rose 31% to 38 pence.
Future said it remained highly cash generative, with £115.9 million in cash from operations and net debt reduced to £241.2 million.
Leverage was unchanged at 1.1 times. The group returned £43.2 million to shareholders during the period through share buybacks and dividends.
It also completed the acquisition of RNWL for an initial £2.8 million in March and announced the purchase of audience engagement tool Kwizly for £0.7 million in May.
Looking ahead, Future said advertising had returned to growth in April but reiterated its more cautious stance for the second half. It expects to maintain an adjusted operating margin of 28% and will provide a trading update in July.
Beyond the current financial year, the company said it expects to return to accelerating organic revenue growth.