Losses Mount At Future As Elisabeth Murdoch Is Appointed To Board
Future Network, the specialist magazine publisher, has appointed Elisabeth Murdoch to its board. Announcing interim results which showed losses of £13.4m, compared to £6.3m for the same period last year, the group said Murdoch would be joining the company as non-executive director.
The daughter of media mogul Rupert Murdoch, she left her position as managing director of Sky Networks earlier this year to pursue new ventures (see Elisabeth Murdoch To Quit Sky). Chairman Chris Anderson said: “She is one of the world’s smartest media executives and her extensive experience and broad range of industry contacts will be of tremendous benefit to Future.”
The last six months has seen the group undergo a period of significant investment, with the launch of 17 new magazines and five internet networks in new markets across Europe and the US (see Future Looks Bright A Year On From Float). The price for this expansion has been growing losses, however, with operating profits before goodwill amortisation down £2.5m to £1.8m for the period.
Revenues have shown considerable growth, up 29% compared to the same period last year, at £111m, and the group is continuing its accelerated growth. Having won the licence to publish Sony’s Official Playstation 2 magazine in the UK, and the expectation of launching 30 new titles before the end of the year, the company is focusing on building long term value in the business.
“My take-away from the past six months is that Future’s globalisation strategy is working: not just in raising the group’s profile, but in delivering a rapidly growing number of genuine global brands while replicating our strong entrepreneurial launch culture throughout the world,” Anderson said.
The group’s biggest market, that of computing games, is a particularly volatile one however, prone to the whims of fashion (see Feature: Changing Trends Affect Gaming Magazine Market) and the group is strengthening its position across other sectors. Its internet magazine portfolio saw the largest growth over the period, increasing its copy sales by 112% year on year.
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