Future PLC (LSE:FUTR), the digital media and price comparison group, reported first-half results slightly ahead of broker expectations at the operating profit level, with Panmure Liberum arguing the worst of the Google AI Overviews disruption may now be behind it.
Group revenue fell 8% to £349.1 million, with organic revenue down 6%, while EBIT dropped 27% to £73.2 million, marginally ahead of the broker's £72.8 million estimate.
The damage from Google's AI Overviews feature, which has diverted traffic away from publisher websites by answering search queries directly, was most visible in eCommerce affiliate revenue, which fell 24% organically.
However, Panmure Liberum noted that Overviews keyword penetration appears to have stabilised at around 65%, suggesting audience declines should follow suit, and that the second half is likely to mark the peak of the disruption.
Go.Compare, the price comparison arm, showed improving momentum with car insurance revenue flat in the second quarter after falling 9% in the first, as premium inflation drives switching activity.
The company reiterated full-year guidance for a mid to low single-digit organic revenue decline with EBITDA margins of 25% to 27%.
Panmure Liberum, which rates the stock a buy with a 500p target against a current share price of 291p, highlighted the extreme valuation disconnect, noting Future trades on just 3.1 times financial year 2027 EV/EBIT.
Using the current multiple of listed peer Moneysupermarket to value Go.Compare implies the publishing business is being valued at just 0.8 times EBIT, a level the broker described as technically negative on a forward basis.