Hugo Drayton is former managing director of Telegraph Media Group and CEO of Inskin digital advertising. For the last nine years (he steps down later this month), he has been a non-executive director of Future Plc during the listed group’s momentous print-to-digital journey. The UK-based transatlantic company – founded in 1985 by TED’s Chris Anderson – had a stockmarket cap of some £30mn on Drayton’s first day as a director and it’s some £1bn now – having once been £3.8bn. During that time, Future has invested some £1.5bn in acquisitions. Its enterprise value (including debt) is currently £1.3bn.
Drayton’s decade at the Telegraph immediately preceded the historic news brand’s acquisition by the Barclay family. It was marked by the company’s pioneering digitalisation (it then claimed to be “Europe’s first daily web-based newspaper”). He graduated in Latin American studies from University College London and is fluent in four European languages.
What were your earliest ambitions?
I was always quite entrepreneurial; my father had his own retail business – modern interiors – so I was also quite involved with that. But, by the time I was at university, I wanted to travel and be a journalist. However, I missed the deadline to apply to the Reuters graduate programme…
What was your first job?
I had a variety of jobs before and during university. But my first real job was with Coats Viyella, the textile multi-national. For almost a decade, I lived and worked in South America and across Europe – in marketing and sales. I learned about independence, going the extra mile, seizing opportunities; and of course, how a big, slow, old-world company operated. Back then, young ex-pats were given disproportionate responsibility – so you grew up fast. And communication with Head Office was only via Telex or the post bag – supplemented by Fax in the late 1980s – so the constant, connected 24-hour world of the 21st century was unimaginable. I learned very quickly that relationships – and trust – were the key to everything.
How did you get into media?
On returning to the UK, I worked for the Audiotex (automated telephony) business owned by the then UK magazines leader IPC Media. But my first real media job was as marketing manager at The Telegraph: this was in the spring of 1994 when the newspaper was locked in a cover price war with The Times of London. Despite that, I loved it from the very first day. Every day was an exciting, stimulating and (certainly to me) an important mission. My first impressions were of bright people doing a fun job… and that never changed.
What were the highlights of your career at the Telegraph?
I had an amazing decade at the Telegraph, enjoying all the marketing roles, leading to me becoming Managing Director. My first big project defined my time there: I wrote the plan for – and then launched – “Electronic Telegraph”, the UK’s first national news website. When we look back at that chaotic early period of Dotcom1, we tend to forget the innovation, the experimentation, and the pure excitement of deploying revolutionary digital tools – which we now take for granted. No one expected the ‘old’ Telegraph to be at the vanguard of digital – it was hugely important in changing brand perceptions and in reaching new audiences.
There were lots of battles, lots of frustrations, but every day was brilliant. Of course, with hindsight, we should have ignored popularity and pushed for an earlier subscription model. I loved the daily thrill of news – and being among editors and journalists.
My only regret is that it ended too soon for me; when the Telegraph was sold to the Barclay family – while former owner Conrad Black headed to a US jail.
Major upheaval disrupted things but the news brand was saved, not least by excellent journalism including its expose of the MPs expenses scandal. The recent emphasis on digital subscriptions, under my former colleague (now CEO) Nick Hugh, has been an obvious highlight.
How was the switch from media to advertising?
Advertising was – of course – a key part of the publishing business. So, while I missed the daily editorial activity, my roles – at Ad.com, at Phorm and at Inskin Media (now Azerion) – always felt like part of that same creative, vibrant media world. Having spent a decade navigating the traditional ‘Church & State’ segregation of a UK national newspaper, I think I brought a pragmatic, sensitive character to the advertising businesses I ran. At Inskin, we built a brilliant team, and launched in many overseas markets, including Australia and Asia. But I did become disenchanted with advertising, and with media agencies, who paid lip service to quality and to their clients, but whose focus seems too often to be on their own profit margins.
What have been your milestones as a director at Future?
I was fortunate that Zillah Byng-Thorne invited me to join Future in 2014, soon after she took over as CEO. What a ride! The first two years were tough, but she had a clear vision and brilliant operational as well as strategic instincts. Once the company began to grow, triggered by the first acquisition (of Imagine, in 2016) the momentum, collaboration and energy carried the business through its period of extraordinary growth. The lowest point was the sudden tragic death of the brilliant Mangit Wolstenholme, a long-standing non-executive director at Future.
I am certainly proud of the way that Future acquired and integrated a series of high-profile, independent brands and businesses (including Purch, Time Inc UK, Dennis and GoCompare), even during the challenging pandemic. Zillah has often been described as a forceful, driving leader, but she also used the board effectively to prepare her plans – and definitely listened to our advice.
The company does not currently look quite so hot. Why?
The strategy has evolved, rather than changed. The fundamentals of the business continue to be very strong, supported by stellar brands and strong, specialist audiences. The market has changed: confidence has drained, and multiple uncertainties – around Google, AI, advertising, etc – continue to undermine what we would consider to be the ‘real’ value. of Future. But the stockmarkets are fallible: witness the recent sales of parts of Ascential Plc, which had been massively undervalued by the supposed experts. There will undoubtedly be tricky times ahead – geopolitical, commercial and technological – but I believe Future has to hold its nerve, while continuing to deploy technology effectively. Consumers will pay for high-value and specialist information which helps them to navigate and benefit from their lives and passions.
Although investors can (often) get it wrong, their current worries about Future include: its stubborn dependancy on print magazines; eCommerce looking less promising; and problematic US operations. Are they right?
As an opportunistic acquirer of legacy media businesses, in order to on-board high profile brands, Future has ended up with significant print assets (eg from Time Inc UK and Dennis in addition to many of its original brands). While this makes its ‘digital-first’ plan more complicated and time-consuming, print titles often provide healthy cash flow, and are often ready for transition to digital. Future has proved to be good at re-purposing and transforming traditional brands.
On eCommerce, during 2018-22, Future established itself as a market-leading pioneer, matching the passion of specialist titles with great technology. Inevitably, other publishers copied Future’s approach. The market is now depressed. And – post-pandemic – there is less appetite for home shopping (we all bought everything in lockdown!). So, yes, at present (outside the Go Compare price comparison site), those revenue streams look less bouyant. However, it is still a key part of Future’s diversified revenue picture and should be.
The US is the single biggest opportunity for Future. Of course, we recognise the company is not currently punching at its potential weight in the world’s largest market. But it has recently made significant new commercial hires in the US; we have brilliant, established brands in our markets (in technology, but also now in the women’s market with WhoWhatWear and Marie Claire). The tech advertising market has been volatile but now shows signs of growth. There is definitely cause for optimism for Future in the US.
Which companies do you most admire?
Sky TV (now owned by Comcast) has been a consistent and positive innovator, always focused on customer experience. In the news world, DMGT and News Corp UK (The Times of London) have overcome major challenges, and remained relevant to their audiences. Somewhat reluctantly, we have to admire Amazon, for its single-minded focus on customer service, setting a sky-high bar for any would-be competitors.
What are the best lessons you have learned?
That learning never ends – it must be a constant updating, and we must all be open to new ideas and approaches. You must take opportunities – especially when you are young, when it is impossible to predict how your life will evolve. For those of us fortunate to have such a choice, it is important to do things you enjoy: inevitably you will be best at those things! If you and your team are having fun, you will be more productive and effective. And, remember, that it is ‘just business’: while decisions can appear very personal, usually they are not. Lastly, don’t be afraid to take risks, and to chase new opportunities.
