Future weathers market storm during first half of year

UK-based media company Future plc has reported largely flat results for the first half of its financial year, ended March 31.

Revenues fell by 2 per cent to GBP 76.6 million, while UK profits were up 3 per cent. Overall pre-tax profits fell from GBP 4.1 million a year ago to GBP 1.2 million.

The company's EBITA (earnings before interest, tax and amortization) were down from GBP 7.0 million to GBP 4.6 million, but largely flat if GBP 2.4 million in one-off costs are discounted.

"Our focus in the first half has been on navigating through some exceptionally tough market conditions, especially in the US," said CEO Stevie Spring. "Stripping out our prudent receivables provision and the exceptional US newsstand disruption, EBITA for the half is broadly flat: a good performance in a turbulent media sector."

The company insists that the results do not reflect the full effect of recent cost saving measures and that EBITA estimates for the full year are still on track. Future currently has GBP 22.8 million of net debt and a new GBP 42 million banking facility until November 2012.

Three new magazines launched during the period, although none of them were videogame related. Gross digital spend was up by 24 per cent. Online advertising was up 18 per cent and now accounts for 24 per cent of all advertising revenue - up from 19 per cent the previous year. Subscriptions revenue was up 13 per cent and customer publishing revenue up 11 per cent.

"The underlying strength of our special-interest business; our ability to mitigate revenue disappointment swiftly; and continuing progress in our strategy all give me confidence that when the economic storm does finally clear, Future will be well-positioned to benefit," continued Spring.

"While our outlook for the second half must remain cautious, we are still on course to meet expectations for the full year," she added.