Acquisition of Polish PC Magazine Publisher
Future Network PLC
26 April 2000
FUTURE EXPANDS INTERNATIONAL NETWORK TO POLAND
Future to acquire leading Polish PC magazine publisher
Future Network plc (LSE: FNET), the international specialist consumer
magazine and online publisher, today announces that it has entered into
an agreement to acquire Silver Shark Sp z.o.o., a privately owned
Polish publishing company and the publisher of Poland's leading PC
magazine. Completion is subject to approval from the Polish Office for
Competition and Consumer Protection, which is expected in four to six
weeks time.
Silver Shark Sp z.o.o. currently publishes three monthly and two bi-
monthly magazines and a number of one-off specials aimed at the PC and
computer games market. Its largest publication is CD Action, which had
a monthly circulation of 148,000 in March - up 70% year-on-year, and is
Poland's market-leading PC magazine. In October 1999, the magazine's
content was extended to include additional material licensed from
Future's PC Format, PC Guide and PC Answers. The company's two other
monthly magazine are Action Plus, a tips & tactics brand extension to
CD Action with a current circulation of 25,000, and the Polish edition
of .net magazine, Future's leading UK Internet magazine, which was
launched last month.
Silver Shark is based in Wroclaw in south-west Poland and currently
employs over 30 staff. Turnover for 1999 was £2.84 million and is
predicted to be in excess of £4 million for 2000. The chairman and
founder of the company, Witold Zagrodny, will remain with the business
and the company will change its name to Future Publishing, Poland.
Commenting on the acquisition, Greg Ingham, Chief Executive of Future
said:
'We are delighted to have added this excellent business to The Future
Network, which continues our strategy of entering key international
markets. In addition to establishing Future as the market leader in
Poland, the acquisition offers further exciting opportunities for
launching other magazines and Internet publishing activities in Poland
and neighbouring Eastern European markets.
'Silver Shark is a smart, entrepreneurial, fast-growing company. It
has great potential and we're really looking forward to working with
Witold and his team in developing the business, building on the
relationship we've established through our licensing agreements.'
Poland is one of Europe's fastest-growing markets for PC penetration
(25% PC usage, population of 38.6m) and Internet usage has increased
dramatically over the past year (April 1999 - 700,000 users; Jan 2000 -
2,000,000 users: Nua Surveys). This growth has been achieved despite
relatively expensive call charges. Poland is also the fastest growing
economy of all ex Eastern bloc countries, with a 50% increase in GDP
since 1990 and average annual growth over the past four years of 6%.
For more information:
Greg Ingham, Chief Executive Tel: 01225 442244
The Future Network plc
James Longfield/Harriet Keen Tel: 020 7357 9477
Hogarth Partnership
Background on The Future Network
Future was founded in the UK in 1985. Today it publishes over 120
magazines worldwide and has extensive online activities attracting the
attention of 4.6 million unique visitors and generating over 58 million
page views per month. It is the world's fastest growing major
publisher; the leading publisher of video games and home computing
magazines in the UK, France, Italy, Poland and the US; and, ranks as
the fourth largest magazine publisher in the UK. Future employs over
1,500 people in offices in Bath, London, San Francisco, New York,
Paris, Milan, Munich, Rotterdam and Wroclaw. Future was floated on the
London Stock Exchange in June 1999 and has a current market
capitalisation of over £1 billion.
Future's internet activities serve the PC, Mac, Games, Music and
Football communities in the US and the UK with fast-growing sites like
maximumpc.com, maximumpc.co.uk, macdaily.com, dailyradar.com,
intermusic.com, and ufn.co.uk. Future's websites and web networks
provide rich, community- and information-based services to people in
these and related markets worldwide.