Strong PlayStation 2 Sales To Boost Future Network Revenues

Experience from the original PlayStation console shows that Future sold around one magazine for every ten consoles sold; Sony has just announced that ten million PlayStation 2 sets have been sold in Europe, with sales likely to rise in the run-up to Christmas. This is good news for Future, which sees around 39% of its UK sales come from the gaming sector, according to Merrill.

Following a management meeting with Future Network, the broker also reports that Q4 advertising in the US is looking ‘very promising’, boding well for the UK and Europe, which tend to reflect the US with a certain amount of lag.

Merrill forecasts Future’s group advertising revenues to be up 4% in H2 2002, with UK gaming revenues up by around 22%. Full year earnings are expected to be £13.4 million in 2002 and £18.6 million in 2003.

A return to debt-free growth marks the end of a very difficult period for Future Network, which was forced into a raft of disposals, redundancies and reorganisation in order to stay afloat (see Future Network To Cut 140 Jobs In Cost-Cutting Restructure). In September, the group announced a return to profit and anticipated a stronger second half (see Future Network Moves Into The Black In First Half).