Future Reveals Trading Below Expectations

Future has announced that trading for the second half of 2005 has continued at levels below expectations, with the specialist magazine publisher attributing the demise to newsstand weakness in the UK and France, combined with a higher level of new product development expenditure.

According to its trading statement, total group turnover for the 11 months to 31 August has risen by 9% (3% excluding acquisitions) year on year, with advertising revenue up by 5%. Circulation and advertising revenue growth in the half-year to 31 March grew by 5% and 3% respectively, with revenue falling by 2%, while advertising increased by 8%.

In the UK, the difficult retail environment continued into the second half of 2005, with the group’s games titles showing a slight increase in profit compared with last year, while computing magazines continued to experience tough operating conditions. Future’s entertainment titles, however, managed to increase their profits.

Future’s overall performance in the US was in line with forecasts, with lower operating profits compared with last year, reflecting the losses from the group’s investment in new launches and developing its internet activities.

Despite Future France and Future Media Italy enjoying good profitability last year second half trading in mainland Europe is expected to be close to break-even, with both countries’ newsstand sales being under pressure, with computing titles facing more difficult general trading than games titles.

Earlier this summer, Future warned that sales of titles in niche interest groups had been disappointing since the start of April, due to faltering consumer confidence in the UK.

Future’s chief executive, Greg Ingham said: “Trading in the (fiscal) second half has begun a little below our expectations and our short-term outlook is therefore cautious.”

Future Publishing: 01225 442 244 www.futurenet.com