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Future Publishing issues profit warning, stock plummets

Future Publishing issues profit warning, stock plummets

Mon 17 Mar 2014 9:33am GMT / 5:33am EDT / 2:33am PDT
Media

CEO Mark Wood points to delayed console game launches for lack of ad revenue

Future Publishing Ltd. has warned investors to expect profits "significantly below" its forecasts for the fiscal year.

The warning arrives ahead of its interim results for the six-months ending March 31, 2014. Speaking to The Daily Telegraph, Future CEO Mark Wood pointed to delays in the release dates of new console games as a major contributor to the company's performance.

"We had anticipated more advertising around games launches after the new consoles were launched," he said, "but there have been some delays around those launches which has delayed the game advertising spend."

The six-month results will be published on May 23, when Future will also give its investors a "full update" on its progress reducing its cost base and improving margins.

"We have reduced the headcount by close to 300 in the last two years, and that is a process which isn't finished," Wood added.

"We have inherited a large cost base and we've got to get it down to be fit for purpose. We've made good progress on that so far and we'll carry on doing it, and the staff know that and they get that."

The news certainly wasn't welcomed by the markets, with Future's share price falling from 13 on Thursday to a low of 8.50 on Friday.

5 Comments

Morville O'Driscoll Blogger & Critic

1,590 1,446 0.9
"but there have been some delays around those launches which has delayed the game advertising spend."
I haven't read a print games mag in awhile. Can someone tell me if the adverts are still almost entirely related to games/gaming, or have they started to spread their advertising wings with, oh I dunno, ads for razors, deoderant, drink, books? Things which are constants.

Posted:7 months ago

#1

Matthew Handrahan Staff Writer, GamesIndustry.biz

124 110 0.9
I haven't worked on a magazine in a while, but in those I've seen recently all of the adverts have been for games and related products and services. And there weren't many of those.

Posted:7 months ago

#2

Morville O'Driscoll Blogger & Critic

1,590 1,446 0.9
Cheers for that. I didn't think they had started advertising things outside of gaming, but didn't want to just assume that. :)

Edited 1 times. Last edit by Morville O'Driscoll on 18th March 2014 2:34pm

Posted:7 months ago

#3

Matthew Handrahan Staff Writer, GamesIndustry.biz

124 110 0.9
In my experience, it was never through a lack of trying. This is four or five years ago now, but for the ad teams I worked with brands outside of gaming seldom yielded results. It was mostly dead-ends for a lot of extra effort. It seemed to indicate a rather negative view of gaming and gamers from other industries; the assumption that a given gamer's sphere of interests didn't extend to anything that couldn't be accessed via a controller or a keyboard.

That may be changing now, of course.

Posted:7 months ago

#4

Morville O'Driscoll Blogger & Critic

1,590 1,446 0.9
It seemed to indicate a rather negative view of gaming and gamers from other industries; the assumption that a given gamer's sphere of interests didn't extend to anything that couldn't be accessed via a controller or a keyboard.
Mmm, I guessed some magazine ad departments had tried to entice "outside products" in the past, and I also guessed at least some companies would rebuff them. A shame - it would work out well for both sides. I do wonder how hard the magazine publishers try, though. Not to imply anything bad, but I don't see why Gollancz wouldn't want to promote the latest Brandon Sanderson book in a magazine which has Elder Scroll Online on the cover (as a for instance).

Ah, anyways... One of those unknowables. :)

Posted:7 months ago

#5

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