Future Network Profits Rise Despite Weakened Dollar
Consumer magazine publisher, Future Network, has today warned profits have been held back as a result of a weak Dollar, despite pre-tax profits growing by 7% during the first six months of this year.
From January to June 2004, pre-tax profit rose to £7.2 million, up from £6.7 million year-on-year, while operating profit rose 9% to £7.1 million.
However, despite the continued improvements, Future Network said that adverse currency movements stifled operating profits by £0.3 million.
Chief executive, Greg Ingham said: “The continued weakness of the US Dollar and ongoing launch costs for Mobile PC are holding back profit growth in the US this year.”
Advertising revenue for the group has gone from strength-to-strength during the period, up 14%, spurred by better than expected results in the US, which were up 56% year-on-year. However, despite improvements in Europe and the UK, these paled in comparison, growing by only 2% and 1% respectively.
Profits in the UK were down £0.2 million to £5.8 million year-on-year, while Europe saw significant improvements, returning to profitability during the period to post pre-tax profits of £1.4 million. The US saw profits slip during the six months, down £0.7 million to £1.4 million.
Ingham said: “The group has made good progress in the first half of 2004, with solid UK profits, further strengthening of our position in the US and excellent progress achieved in mainland Europe, where the business has returned to profitability.”
He added: “Since the period end we continue to make progress, with two more bolt-on acquisitions completed, Spanish Homes Magazine, PC Zone and Computer & Video Games, and plans in place for at least seven launches in the next twelve months. Future has a strong balance sheet to support further growth plans.”
Future Publishing: 01225 442 244 www.futurenet.com
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