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Future swings to 1.1m profit after major restructuring

Publisher seeing success from tablets; business now "fit for purpose"

Future Publishing recorded a 1.1 million profit for the full 2012 financial year, up from the 18 million loss in 2011.

Sales were down from 141.7 million to 123.5 million, in a year where the publisher restructured its US business and focused on digital markets as print continued to decline.

The company generated 6 million of sales on Apple's Newstand since it launched in October 2011, with global sales on all tablet devices hitting $1 million each month.

"We are a leading force in the new tablet markets and our online audience has grown by 70 per cent to more than 50 million unique users," said CEO Mark Wood.

"The main achievement was to advance our new business models which steadily reduce reliance on print markets and have opened new avenues for global expansion. We are aiming to generate more than half our revenues from digital markets within three to four years."

In the UK the publisher noted that sales in its entertainment and technology business were down on last year due to the games market cyclicality. The company recently announced the closure of PSM3 and Xbox World, but continues to publish Edge and websites CVG and Games Radar.

"At the end of 2011 the Board took far-reaching decisions to reorganise the Group," offered Woods. "We defined a clear set of objectives, including a recovery of the US operations and the implementation of a defined strategy for global growth as a digital business. These objectives have been met, despite difficult trading conditions in media and consumer markets.

"We feel we now have a business structure which is fit for purpose. The new senior executive management has succeeded in refashioning the business and demonstrated that they have the strategic and execution skills to achieve further progress in the year ahead."

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Latest comments (3)

Andrew Goodchild Studying development, Train2Game4 years ago
I'm glad they are back in black, but a 0.89% profit still sounds like they have a way to go before being secure. I wonder what there state is in terms of cash and debt.
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Benjamin Kratsch Deputy Editor-in-Chief, Games Network4 years ago
@Matt Martin: Nice insight, thanks. Do you have any information how much each magazine is selling? Because Future is probably the biggest special interest publisher in europe with a wide magazine range from Games to film and science. I guess they have something around 15 + magazines in their digital portfolio.
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Morville O'Driscoll Blogger & Critic 4 years ago
@ Benjamin

The ABCs (Audit Bureau of Circulations - independently verified sales figures) for 2012 should be out mid-January. Though it's interesting that the article says
In the UK the publisher noted that sales in its entertainment and technology business were down on last year due to the games market cyclicality.
The ABCs for Edge during 2011 were a shade under 25,000 per month, and if they're down again... Well, the only reason I can see Edge still existing as print is due to the cachet it has in the industry.

(The ABC website is here: http://www.abc.org.uk/ and is free for anyone to join. There's abbreviated search options for those outside of the company members section, but it's still worth it, I think)

Edited 1 times. Last edit by Morville O'Driscoll on 24th November 2012 3:33pm

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