Circulation Figures - 13% Sales Increase
Future Network PLC
11 February 2000
THE FUTURE NETWORK PLC
New titles and Internet magazines maintain circulation
growth and portfolio diversification at Future UK
Future Network plc (LSE: FNET), the specialist magazine
and website publisher, today announces its UK circulation
figures for the second half of 1999. The independently
audited Audit Bureau of Circulations figures showed
monthly average magazine copy sales up 13% year-on-year.
Key highlights:
* Launches and acquisitions drive 13% year-on-year
sales increase
* Portfolio strengthened by diversification
* Internet magazines grow circulations by 89%
* Future attains market leadership in football
magazine sector
* Market leadership in games magazine sector
maintained
The second half of 1999 has seen a strengthening of
Future's magazine portfolio in key areas including
Internet, sport, consumer electronics and games. Driving
the growth was a strong set of launches, including
Internet Advisor, DC-UK, PlayStation Max and Planet PC,
and several acquisitions including Manchester United
Magazine, Metal Hammer and Hi-Fi Choice. In total 15
launches and 6 acquired titles appear in the end of year
release for the first time.
The Internet magazine sector produced strong growth, with
sales up 89% year-on-year. .net magazine, the longest
established consumer internet magazine, hit a record high
of 56,519, while Internet Works, for businesses getting
onto the net, rose 38% to 30,037. They were augmented by
the new beginners' title Internet Advisor, which recorded
a debut figure of 47,702. Future's online share dealing
magazine, Internet Investor, was launched too late to be
included in the ABC audit, but has debuted well.
Future Publishing has now been confirmed by these ABCs as
the market leading publisher of monthly football
magazines. Its four football titles sold 166,789 between
them, giving Future a 52% market share. The mountain
biking magazine, MBUK, also built on its number one
position with a market share of 52%.
In the games market, as anticipated, the impending launch
of the PlayStation 2 in September 2000 has caused a
slowdown in sales of PlayStation magazines, with the
monthly PlayStation portfolio down 3% year on year. The
leading title in this sector, Official PlayStation
Magazine sold on average 351,775 copies, increasing its
lead to 262,000 over its nearest competitor. The
movement in the PlayStation portfolio has been more than
offset by a 36% increase in sales of magazines for other
platforms such as Nintendo, the new Sega Dreamcast and
especially the PC. Future's PC Gamer is up 23% and has
taken market leadership by over 5,000 on its nearest
competitor despite its coverprice being at least £1
higher.
Commenting on the figures, Greg Ingham, Future's Chief
Executive, said:
'This is another excellent set of ABC figures for Future
and clearly underlines our position as the fastest
growing major magazine publisher. As outlined in our
strategy, we have powered on with our computing portfolio
and yet diversified and grown in other specialist sectors
by managing our portfolio at lightening speed: launching,
acquiring and in some cases, of course, closing titles in
response to consumer demand. Our ability to spot and
respond quickly to market trends has contributed to our
performance. With a number of launches made towards the
end of 1999, such as Linux Answers, Mobile Computer User
and Internet Investor and further launches planned for
this spring, including Business 2.0 and MP3 Magazine, we
are confident that we can maintain Future's impressive
growth record.
'The strong performance of our UK magazine portfolio is
only part of the Future story. We also have businesses
in the US, France, Germany, Italy and Holland and operate
a number of compelling web networks and sites in both the
US and UK. We will be reporting our progress in these
markets in our full year results on the 20th March.'
For further information:
Greg Ingham, Chief Executive Tel: 01225 442244
The Future Network plc
James Longfield/Harriet Keen Tel: 0171 357 9477
Hogarth Partnership
A breakdown of the ABC's by sector and for Future's
individual titles is attached
Future Network
Summary of UK ABC figures*
Sector 1999 ABC YoY % change
-----------------------------------------------------
Internet 134,248 89%
PC 362,702 3%
PlayStation games 507,695 -3%
Other games 316,856 36%
Other computing 48,292 -4%
------------------------------------------------------
Total Computing 1,369,793 11%
------------------------------------------------------
Consumer
electronics 91,758 106%
Football 166,789 391%
Other sports and
entertainment 213,930 -8%
Crafts 178,215 -18%
Music 186,615 -1%
------------------------------------------------------
Total Specialist 837,307 17%
------------------------------------------------------
------------------------------------------------------
Total (monthly
only) 2,207,100 13%
------------------------------------------------------
Occasional
publications 233,541 n/a
------------------------------------------------------
Total (excluding
closures and
including
occasional
magazines) 2,440,641 29%
------------------------------------------------------
* Note on figures:
Please be careful when comparing these figures to other
companies to ensure that they have been calculated on the
same basis. The above comparisons are done on monthly
titles only, ignoring occasional publications (specials
etc), and including magazines which have been sold or
closed in 1999.
Whilst some commentators ignore closures and count
occasional magazines towards the total, this gives a
potentially deceptive higher headline figures.
Calculated on this basis Future showed year on year
growth of 29% (as indicated).
Analysis of individual magazines, by sector is attached
The Future Network
Sector Breakdown
Internet Magazines 1998 1999
------------------------------------------------
.net 49,190 56,519 15%
Internet Advisor n/a 47,702 n/a Launch
Internet Works 21,821 30,027 38%
------------------------------------------------
Total monthly 71,011 134,248 89%
------------------------------------------------
* .net is the longest established consumer internet magazine,
first published in 1994. This is its highest ever ABC
despite a year of high competition and major launches from
rival publishers.
* Internet Advisor, a magazine for absolute beginners,
records its first ABC.
* Internet Works, for businesses going on line, shows a rise
of 38%.
* Future is market leader in the sector with a 40% share.
PC Magazines 1998 1999
------------------------------------------------
PC Plus 120,265 111,054 -8%
PC Format 95,339 102,810 8%
PC Answers 31,198 42,495 36%
Computer Arts 34,711 38,075 10%
Computer Music 27,748 28,262 2%
Planet PC n/a 20,419 n/a Launch
PC Guide 23,753 19,587 -18%
Discontinued titles 20,502 n/a
-------------------------------------------------
Total monthly 353,516 362,702 3%
-------------------------------------------------
Computer Arts n/a 26,383 n/a Launch (occasional
Specials publication)
Computer Publishing n/a 15,118 n/a Launch (bimonthly)
* PC Format confirms position as No 1 PC leisure title
* PC Answers, a hobbyist magazine, grows strongly
* Computer Arts and its sister title, Computer Arts
Specials, show good growth in the computer graphics sector
* Planet PC is a new PC leisure magazine aimed at 10 - 14
age group
* Computer Publishing is a new title for home DTP users
Other computing 1998 1999
Magazines
------------------------------------------------
MacFormat 35,655 37,146 4%
Amiga Format 14,644 11,146 -24%
------------------------------------------------
Total monthly 50,299 48,292 -4%
------------------------------------------------
Your iMac n/a 19,300 n/a Launch (occasional
publication)
* Sales of Apple's home iMac drive growth from long
established MacFormat and new spin off Your iMac
* MacFormat confirmed as market leader
* Veteran Amiga Format continues to be published despite the
demise of the computer it writes about some six years ago.
Sector breakdown/continued:
PlayStation Magazines 1998 1999
------------------------------------------------
Official PlayStation 380,186 351,775 -7%
PlayStation Power 94,125 81,079 -14%
PlayStation Max n/a 50,425 n/a Launch
Official PlayStation 50,472 24,416 -52%
Tips
------------------------------------------------
Total monthly 524,783 507,695 -3%
------------------------------------------------
Best Games Ever n/a 57,420 n/a Launch (occasional
publication)
Discontinued titles 268,424 n/a (occasional
publications)
* Official PlayStation Magazine now outsells its
nearest rival by 262,000
* Future has 62% of the PlayStation sector
* PlayStation Max is aimed at under 12 age group
* Official PlayStation Tip 1998 figures based on one
issue in period versus six issues in 1999
Other games Magazines 1998 1999
------------------------------------------------
PC Gamer 68,242 83,669 23%
N64 73,217 67,016 -8%
Gamesmaster 64,565 61,106 -5%
Edge 27,354 29,394 7%
DC-UK n/a 28,857 n/a Launch
Arcade n/a 26,053 n/a Launch
Nintendo World n/a 20,761 n/a Launch
------------------------------------------------
Total monthly 233,378 316,856 36%
------------------------------------------------
* PC Gamer, a worldwide brand with editions in the
USA, France and Germany among others, shows
exceptional growth of 23% making it the market
leader - despite having over £1 higher cover price
than nearest competitor
* DC-UK's first figure is 28,857. The Dreamcast
console was only launched this autumn
* Arcade - a games title targeted at older gamers -
recorded its first July-Dec ABC.
* Nintendo World is for under 12 users of the N64
console.
Consumer electronics 1998 1999
Magazines
------------------------------------------------
T3 44,651 46,111 3%
Home Entertainment n/a 25,206 n/a Acquisition
Hi-Fi Choice n/a 20,441 n/a Acquisition
------------------------------------------------
Total monthly 44,651 91,758 106%
------------------------------------------------
* T3 shows 5th successive ABC rise
* Acquisitions Home Entertainment and Hi-Fi Choice
strengthen electronics portfolio
Football Magazines 1998 1999
------------------------------------------------
Manchester United n/a 90,338 n/a Acquisition
Magazine
Glory Glory Man Utd n/a 30,600 n/a Acquisition
Total Football 33,980 25,177 -26%
Chelsea Magazine n/a 20,674 n/a Acquisition
------------------------------------------------
Total monthly 33,980 166,789 391%
------------------------------------------------
* Market leader in football magazines as a whole
* Total Football showing effect of non World Cup year
* Manchester United Magazine is best selling football
monthly
Sector breakdown/continued:
Other sports and 1998 1999 %
entertainment
Magazines
------------------------------------------------
Total Film 66,474 72,225 9%
MBUK 60,577 61,429 1%
SFX 36,718 35,701 -3%
Sailing Today 25,745 25,976 1%
Cycling Plus 19,364 18,599 -4%
Discontinued titles 23,350 n/a
------------------------------------------------
Total monthly 232,228 213,930 -8%
------------------------------------------------
* Total Film reaches new record
* MBUK maintains market leadership in biking sector
* SFX maintains market leadership in science fiction
sector
* Sailing Today maintains market position despite
strong attack by other publishers
Craft Magazines 1998 1999
-------------------------------------------------
Cross Stitcher 74,221 67,317 -9%
Cross Stitch 36,927 33,553 -9%
Collection
Needlecraft 33,355 28,750 -14%
Quick & Easy 35,125 27,304 -22%
Good Woodworking 22,012 21,291 -3%
Discontinued titles 15,952 n/a
-------------------------------------------------
Total monthly 217,592 178,215 -18%
-------------------------------------------------
Cross Stitcher n/a 21,449 n/a Launch (occasional
Specials publication)
Jane Greenoff's Cross n/a 20,784 n/a Launch (bimonthly)
Stitch
Celebrations 16,536 13,332 -19% (bimonthly)
* Two successful launches in sector which Future
dominates
Music Magazines 1998 1999
-----------------------------------------------
Metal Hammer n/a 37,141 n/a Acquisition
Total Guitar 48,150 36,062 -25%
Classic CD 30,152 25,173 -17%
Future Music 26,523 23,011 -13%
Guitarist 24,716 22,029 -11%
Guitar Techniques 19,365 16,101 -17%
The Mix 15,021 12,390 -18%
Bassist 8,034 7,818 -3%
Rhythm 6,646 6,890 4%
Discontinued titles 9,057 n/a
-------------------------------------------------
Total monthly 187,664 186,615 -1%
-------------------------------------------------
Total Guitar n/a 23,483 n/a Launch (occasional
Collectors Special publication)
Guitarist Blues n/a 20,672 n/a Launch (occasional
Special publication)
Future Music Gear n/a 15,600 n/a Launch (occasional
Special publication)
* Metal Hammer confirmed as market leading monthly
hard rock magazine, acquired from Dennis in January
* Total Guitar confirmed as market leading guitar
magazine
Background on The Future Network
The Future Network was founded in the UK in 1985. Today
Future publishes 120 magazines worldwide and has
extensive online activities generating over 68 million ad
impressions per month. It is the world's fastest growing
major publisher; is the leading publisher of video games
and home computing magazines in the UK, France, Italy 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 and Rotterdam. 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.