Future (FUTR) 859p

Loss to date: 17.5%

We flagged media firm Future (FUTR) as a buying opportunity in August after a big retreat from highs above £38 in late 2021. We saw sense in the company’s growth acceleration strategy which included targeted investment in its so-called ‘Hero’ brands – 12 titles which generate 50% of its revenue – as well as plans for growth in US digital advertising.

WHAT HAS HAPPENED SINCE WE SAID TO BUY?

For a time not a lot, with a trading update on 26 September seeing Future report its full-year 2024 would be in line with market expectations, but that changed on 18 October with shock news that CEO Jon Steinberg is set to depart.

The American, who only joined in 2023, is set to work his 12-month notice period but will then leave in 2025 to relocate back to the US with his family.

Given the progress Steinberg has made with Future, which owns 300 titles including Ideal Home, Games Radar, Marie Claire, TechRadar, and the price comparison site GoCompare, it’s not surprising the market took the news poorly with the shares down 18% on the day of the announcement.

WHAT SHOULD INVESTORS DO NOW?

We note the shares have already recovered some ground after the initial shock and we think the news is worth keeping in perspective for now. The notice period gives Future plenty of time to identify a new CEO. We will be watching full-year results on 5 December closely. Both for an update on the succession plan but also for any signs of a deterioration in Future’s prospects which might have fed into Steinberg’s decision to exit. 

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