Interim Management Statement

RNS Number : 9015A

Future PLC

09 February 2011

 



 9 February 2011

Future plc

Interim Management Statement

Future plc, the international special-interest media group, today publishes its Interim Management Statement for the period from 1 October 2010 to the date of this announcement, incorporating the Group's first quarter for the three months ended 31 December 2010.

Trading performance

Trading has continued in line with the Board's expectations, as set out in the Group's annual results announcement on 24 November 2010.

·      Growth in commercial revenues compensated for pressure in circulation, so aggregate revenues in Q1 were broadly unchanged

·      Digital advertising revenues were up 25%, more than compensating for a 10% decline in print advertising revenue, and now represent 32% of total advertising revenue

·      Customer publishing revenues up 18%

·      All costs under control

·      Continuing strong cash flow generation, facilitating further debt reduction, with net debt down 28% year-on-year

Business update

In the UK, which comprises 70% of Group revenue, circulation revenue in the quarter fell 4% (FY10: -4%) while advertising revenue grew by 7% (FY10: +4%), driven by digital improvements.

In the US, revenue for the quarter fell 2%, with growth in digital and customer publishing revenues substantially offsetting reductions in circulation and print advertising.

Globally, we have again achieved a significant increase in customer publishing revenues, up 18% year-on-year.  During the quarter we launched a number of new products - a dozen apps; a new print publication on all things Apple - Tap! - and we saw revenues from our digital magazine sales increase substantially.  The changing mix of our business continues but at an ever faster pace. 

The table below summarises year-on-year changes in revenue:

	UK	US	Group
	% change	% change	% change
Circulation revenue	-4	-12	-6
Advertising revenue	+7	-6	+2
Customer publishing	-10	+62	+18
Total revenue	-2	-2	-2

All comparisons are with the three months ended 31 December 2009 and are shown in constant currency.  The most significant foreign currency affecting the Group is the US Dollar, which strengthened by 3% against the Pound.  70% of Group revenue is generated by our UK business and 30% by our US business. 

Financial position

The Group continues to be strongly cash generative, with a healthy balance sheet.  Net debt at 31 December was £14.6m, down 28% year-on-year. The Group continues to operate within all bank covenants.

Outlook

The trading backdrop in both the UK and US continues to be fragile, as we re-focus our business onto growth areas.

We continue active portfolio management and tight cost controls alongside appropriate investment in our brands and in new products to deliver content across a range of distribution platforms including tablets and mobile devices. 

Specifically, we are investing some of the 2010 US tax rebate to improve our digital production capabilities.  The expected benefits of this investment and its impact on 2011 earnings were indicated in our annual results statement on 24 November 2010.

Stevie Spring, Future plc Chief Executive said:

"We expect the trading environment to remain challenging throughout 2011, but our progress online and in customer publishing - our main growth areas - and in our tablet and mobile development - is pleasing."

AGM and next trading update

Future will hold its Annual General Meeting at 12 noon today.

Future plans to provide a pre-close trading update on 31 March.  

Enquiries:

Future plc

Stevie Spring, Chief Executive                            Tel: [phone]

John Bowman, Group Finance Director               Tel: [phone]

Financial Dynamics:

Charles Palmer, Nicola Biles                                   Tel: [phone]

About Future:

Future plc is an international special-interest media group, listed on the London Stock Exchange (symbol FUTR).  Founded in 1985 with one magazine, today we have operations in the UK, US and Australia creating over 180 special-interest publications, websites and events.  We hold market-leading positions in games, film, music, technology, cycling, automotive and crafts.  Our biggest-selling magazines include T3, Total Film, Classic Rock, Guitar World and Official Xbox Magazine.  Our websites include gamesradar.com, bikeradar.com, and techradar.com.  Future sells more than three million magazines each month; we attract 23 million unique visitors to our websites; and we host 27 annual live events.  In addition, Future exports or syndicates publications to 90 countries, making us the UK's number one exporter and licensor of monthly magazines.

This Interim Management Statement (IMS) is prepared for and addressed only to the Company's shareholders as a whole and to no other person. The Company, its directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this IMS is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed. Statements contained in this IMS are based on the knowledge and information available to the Directors at the date it was prepared and therefore the facts stated and views expressed may change after that date. By their nature, the statements concerning the risks and uncertainties facing the Group in this IMS involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. To the extent that this IMS contains any statement dealing with any time after the date of its preparation such statement is merely predictive and speculative as it relates to events and circumstances which are yet to occur. The Company undertakes no obligation to update these forward-looking statements.

 

END

 

 

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