Future bucks market trends to boost profits by 3%

LONDON - Magazine group Future has reported some upbeat preliminary financial results amid challenging market conditions, producing a 3% rise in pre-tax profits to hit £9.5m in 2008.

On the back of growth in circulation, advertising and online revenues, Future's normalised revenues increased by 2% from £159.2m in 2007, to £162.9m this year.

Circulation revenues for the year ending 30 September 2008 were up 2% on last year.

The company's top 10 titles in the UK, including Official PlayStation Magazine and Guitar World, increased revenues by 13% and its top 10 US titles increased revenues by 12%.

Total ad revenues climbed 3% year on year, helped out by online ad revenues, which were up 35% and now represent 18% of total advertising revenues.

During the year, Future continued to expand its digital division with the launch of two new Radar websites, and , which joined its most developed network, .

Future now claims to reach more than 18m unique users per month across its websites, which is nearly double the audience reported this time last year. 

The publisher also launched an Australian operating unit in April of this year, which currently publishes four magazines. Next year, this will rise to five with the launch of Official Nintendo Magazine, Australia and New Zealand.

Stevie Spring, Future's chief executive, said: "Future bucked the trend in 2008. We made real progress. 

"Our special-interest focus, healthy balance sheet, lean operating structure and strong cash generation are all ingredients that have helped us to weather the storm to date. And it is these strengths which give me confidence that Future will continue to make progress.

"During 2009 we will invest appropriately within the context of a cautious view of the economic backdrop. Thanks to the measures we set in place over the last two years, the robustness of our strategy and our proven cost flexibility, we are confident that the business is in the best shape it can be to deal with whatever challenges lie ahead.

"And, with our first quarter advertising revenue bookings (for October to December) already running at 95% of 2007 actuals, we are pleased to report that our new financial year has begun satisfactorily."

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