Pre-close Trading Update

RNS Number : 2639P

Future PLC

23 March 2009

 



Future plc

Pre-close Trading Update

Future plc, the special-interest media group, today provides a pre-close trading update for the half-year ending 31 March 2009, ahead of its Interim Results which will be announced on 20 May 2009.

As stated in our Interim Management Statement of 27 January, the trading environment continues to be challenging.

In February and March, Future's US business experienced an unexpected disruption to distribution of up to 40% of its newsstand magazines, following a dispute among wholesalers and distributors in the North American magazine market. This dispute has now been resolved. The financial impact to Future arising from this disruption is a reduction in EBITA, estimated not to exceed $1.5m (£1.0m).

This factor, together with continuing weakness in print advertising, is expected to lead to an operating loss for the US business for the first-half. However, assuming no other unforeseen circumstances, the US business is expected to return to profitability for the full-year to 30 September 2009.

In the UK, the EBITA operating result for the half-year, and central costs, are expected to be in line with the first-half last year.

For the year to date, Future has increased its investment programme, both online and in new magazine launches, because we remain confident that we have the right strategy in place to guide the business through these challenging market conditions. This investment commitment is subject to regular review.

Future's ability to mitigate against revenue reductions; the underlying resilience within the business; the second-half benefit of further cost-saving measures taken in the first-half; and the continuing strength of the US Dollar all mean that the Board remains of the view that the Group's results will be in line with market expectations for the full year to 30 September 2009.  

Enquiries:

Future:

Stevie Spring, Group Chief Executive:                     020 7042 4007

John Bowman, Group Finance Director:                  01225 732 281

Vicky Bacon, Head of Group Communications:     020 7042 4033

Hogarth Partnership:

James Longfield / Ian Payne:                                     020 7357 9477

Notes:

About magazine distribution in the US:

In the US, Future's newsstand magazines are distributed by Time Warner Retail, who contract with a number of independent wholesalers to distribute magazines to retail outlets. In February 2009, a dispute in the industry arose following an attempt by two wholesalers to introduce price increases. This was challenged by a number of US distributors including Time Warner Retail. The dispute has since been resolved and no further disruption to Future's US newsstand magazine distribution is anticipated.   

About Future:

Future plc is an international special-interest media group that is 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 for people who are passionate about their interests. We hold strong market positions in games, film, music, technology, cycling, automotive and crafts. Our biggest-selling magazines include T3, Total Film, Digital Camera, Fast Car, Classic Rock, Guitar World, Official Xbox Magazine, Official Playstation Magazine, Nintendo Power, Maximum PC and MacLife. Our websites include gamesradar.com, bikeradar.com, techradar.com, and musicradar.com. Future sells over 4 million magazines each month; we attract more than 20 million unique visitors to our websites; and we host 25 annual live events that attract hundreds of thousands of enthusiasts. In addition, Future exports, syndicates or licenses its publications to 90 countries internationally, making us the UK's number one exporter and licensor of monthly magazines.

 

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