Future PLC (LSE:FUTR) shares fell 26% to 288p after the group warned that changes in Google search are weighing on higher-margin revenues.
The website and magazine publisher said first-half revenue for the six months to 31 March 2026 will be in line with expectations, though underlying profit margins are under pressure, with the EBITDA margin now expected to be 24-25% due to a shift in revenue mix.
Consumer digital advertising in the UK and US continues to grow, with strong demand for its AI-led Future Optic product, recent acquisition SheerLuxe performing ahead of expectations, and magazine revenues remain resilient.
However, the group said declines in traffic from Google search have been more pronounced than expected. This has reduced higher-margin programmatic advertising and ecommerce revenues and increased industry-wide pay-per-click costs.
Price comparison site Go.Compare returned to growth in March, with further improvement expected in the second half.
Business-to-business trends have also stabilised, with new products expected to support growth later in the year.
Future now expects second-half organic revenue to fall by a low single-digit percentage year on year, with full-year EBITDA margin guided at 25-27%.
Kevin Li Ying, chief executive, 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."