Consumer magazine group, Future Network Plc has announced an increase of 3% in total group revenue for the first quarter of the 2005 financial year, according a trading update released today.
The Group’s entertainment titles enjoyed an impressive 17% rise, while games and computing revenues both declined by 1%. Like for like Group revenues, excluding acquisitions made during the 12 months to 20 September 2004, also dropped by 1%. Future attributed this slump to the weakness in US games advertising during the period, compounded by a weaker dollar (see
Future Network Profits Up 7% Despite The Impact Of A Weak Dollar).
Circulation revenue, which accounts for 68% of group revenues, grew by 7% and advertising revenue (30% of group revenue) fell by 4%.
At the operating level, first quarter profitability, in terms of adjusted operating profit as a percentage of turnover, was modestly ahead for the first quarter of last year.
In the UK, Future revealed that both revenues and profits were at or above budgeted levels, with Future UK remaining steady, and the Group’s adjusted operating profits modestly above the same period for the previous year. The UK results for the quarter do not include the impact of the acquisition of Junior, Junior Pregnancy & Baby and Wedding Day.
Future US saw turnover rise by 10% in Q1, with operating profit slightly ahead of the same quarter last year. Turnover in mainland Europe also grew, increasing by 1%, reflecting a stable performance in France, but a tough competition market in Italy. Overall Europe is comfortably above its level for the first quarter last year.
Operating profit for the December quarter, modestly exceeded the previous year and the Board’s expectation, thus providing a good start for the current financial year.
The Board expects to report the Group’s results for the half-year to 31 March on 14 June 2005.
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