Future Network has increased its influence in the videogames magazine market by reaching a deal to acquire Computec Media UK for £3.2 million.
CMUK publishes the unofficial Playstation magazine, PSW, which has an average monthly circulation of more than 50,000, and Xbox World, which has sales of over 25,000 copies a month.
Under the terms of the deal, Future will allow the company’s parent, Computec Media AG to use content from a number of its UK titles in its German publications.
Future expects that the titles acquired will be profitable in 2004 and deliver a return on investment in the same year. The sale is dependent upon Future being satisfied with CMUK’s 2003 financial figures. In its previous financial year to 30 September 2002, the company generated turnover of £4.7 million.
“Computec has carved out a distinctive and profitable niche within the UK games segment,” said Future chief executive Greg Ingham. “Both main titles have attractive long term prospects. We are pleased to add these titles to our portfolio of leading games titles.”
Sales of games titles have fallen of late but Future saw pre-tax profits increase by 22% to £1.1 million in the first half of 2003.
Haymarket Reports Growth In Profits
Meanwhile, international sales helped to boost pre-tax profits at magazine publisher Haymarket by 22% in 2002, the company has announced.
Haymarket said the figure rose from £20.4 million in 2001 to £24.9 million last year. Group revenues totalled £172.3 million, up 6.8% overall.
The company publishes more than fifty business and consumer magazines in the UK but according to chairman Michael Heseltine, 25% of turnover now comes from overseas markets.
“Our international growth strategy has been built on titles which already have a strong base in the UK, and which have a global appeal to our advertiser customers and the end readers,” he said.
Haymarket is cautiously confident that profits for 2003 will be well over £20 million, and not short of the 2002 figure.
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