Future Network Moves Into The Black In First Half

“The business is debt-free, profitable and stable, having benefited from the restructuring actions we took in 2001 [see Future Network To Cut 140 Jobs In Cost-Cutting Restructure]. All four of our businesses have performed better in the first half of 2002 than they did in the first half of 2001. Future has reported a modest profit and that it is free of bank debt, ahead of our traditionally much stronger second half,” said chief executive Greg Ingham.

Future says that trading conditions in computer games magazines have continued to improve, with strong performances from PlayStation 2 magazines. During H1, the group launched a further three Official Xbox titles, following the US launch in November 2001.

Circulation revenue growth in computing and entertainment has substantially offset advertising declines in these areas, the statement says. Circulation revenue now accounts for 70% of Future’s turnover and is expected to continue to grow in H2, following year-on-year growth in H1 of 24%. Advertising income in 2002 is expected to be flat year-on-year.

The group says that trading in July has been encouraging, but due to the importance of Q4, it is still too early to estimate the full-year outcome with certainty.

“Nonetheless, despite generally difficult economic circumstances, we are cautiously confident that we will perform at least in line with market expectations for 2002,” added Ingham.

Shares in Future Network were up 3½p at 61½p by mid-morning today.