Future PLC
12 May 2005
12 May 2005
Future plc
Acquisition of Cheat Planet for £4.6m
Future plc ('Future'), the international special-interest consumer magazine
group, today announces that it has acquired Cheat Planet (www.cheatplanet.com),
the US computer games website, from Echo Software and Hardware LLC for a cash
consideration of $8.7m (£4.6m) which will be funded from Future's committed bank
facilities.
Launched in 1997, www.cheatplanet.com is the number one cheat site (by site
visitors and page views) and is the fourth largest computer games website* in
the US. It attracts 6.1 million unique visitors per month, of which 40% are from
outside the US. Because Cheat Planet's content is reader-generated and has a
longer shelf life than news or reviews, it requires limited editorial input and
therefore has operated on high profit margins. For the year ended 31 December
2004, Cheat Planet's revenues were $0.9m and pre-tax profits exceeded $0.8m.
As announced on 29 April 2005, Future plans to increase its US internet presence
and this acquisition forms a key part of that plan, entailing increased spending
by Future US as it develops its games website activities. There will be
additional second-half expenditure in this area and accordingly the overall
effect of today's announcement is not expected to have a positive impact on
earnings.
The acquisition complements Future's existing games websites. Future UK has
built its games websites to profitability with www.gamesradar.com and
www.computerandvideogames.com now attracting 1.2 million unique visitors each
month.
Commenting on the acquisition, Greg Ingham, Future's Chief Executive said:
'This is an exciting development which propels Future to fourth position in the
US online games information sector. It fills a gap in our existing portfolio and
gives us immediate critical mass from which we plan to build in the US at a time
when US Internet advertising spend is rising strongly.
'Cheat Planet is already one of the world's leading cheats and tips websites but
as part of Future we can drive more traffic from our existing websites and
magazines. Moreover, our international skills open up further opportunities to
maximise the value of the content Cheat Planet has created.'
*Comscore Media Metrix, January 2005; Gaming Information Key Measures Report
Enquiries:
Future plc Tel: 01225 732281
John Bowman, Finance Director
Hogarth Partnership Tel: 020 7357 9477
James Longfield/Georgina Briscoe
Notes to Editors
* In May, research company eMarketer revised its Internet advertising spend
projections upwards stating that ad spending is projected to grow by 34%
this year rather than the 21% it predicted earlier (source: AdAge.com).
About Future
Future plc was founded in the UK in 1985. Today, it publishes over 100
special-interest consumer magazines and websites worldwide with strong
portfolios in the computing, games, music, sports, motoring, crafts and leisure
sectors. Future employs 1,200 people in offices in the UK, US, France and Italy.
Over 100 international editions of Future's magazines are also published under
licence in 30 other countries across the world. The company is listed on the
London Stock Exchange (symbol FUTR).
This information is provided by RNS
The company news service from the London Stock Exchange
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Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
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