The share price of the FTSE 250-listed Future PLC (GB:FUTR) was hit hard and dropped almost 18% on Thursday after the company reported a decline in its FY23 revenue. The multimedia company’s revenue declined by 4% (10% organic) to £788.9 million on a year-over-year basis, pulled down by weakness in the U.S. market. The pre-tax profits fell 19% to £138.1 million compared to last year.
Investor confidence was shaken after the company released its earnings report for 2023 yesterday. FUTR share price is down over 50% year-to-date.
Future PLC is a multimedia company that provides a range of services, including content, publishing, e-commerce, advertising, etc. The company owns more than 200 media and magazine brands, including well-known names like Marie Claire, Tom’s Guide, TechRadar, PC Gamer, and many more.
Challenging U.S. Market
Future’s U.S. revenues declined by 19% on an organic basis, while the UK top line fell 4%.
In the U.S., weak consumer demand has adversely affected Future’s advertising and e-commerce businesses, which constitute a significant portion of the company’s revenue from this region. The technology product market has suffered from high interest rates and inflation, resulting in reduced spending on advertising by technology companies.
Moving forward, the company anticipates low single-digit revenue growth in FY24 as consumer demand stabilizes. Additionally, it has launched a two-year investment program of £25–£30 million, which is expected to enhance the operating margin to a range of 28%–30% from the current level of 22%.
Is Future PLC Stock a Buy?
According to TipRanks consensus, FUTR stock has received a Hold rating based on three Buy and two Sell recommendations from analysts. The Future share price forecast is 848.75p, which implies an upside of 33.9%.
