A strong performance in the US has helped international magazine publisher Future Network to achieve a rise in first half pre-tax profits of 22% to £1.1 million, on a rise in turnover of 9% to £80.6 million.
The company said that UK profits, down by 0.1% to £6.0 million, were held back by increased launch spend during the half. Turnover in the UK accounts for 57% of Future’s revenues. The US – which accounts for 22% of revenues – saw operating profits jump to £1.9 million, up from a loss of £0.2 million in H1 2002.
Advertising revenues, which account for 27% of Future’s turnover, were up by 7% to £21.4 million. Circulation revenue for the first half-year grew by 6%, despite some weakness in UK circulation volumes, the group said.
Copy sales of Future’s UK games titles were down 3.8% year on year, reflecting a relatively quiet period for new game launches. Future’s first-half market share of the games segment remained level with the same period last year at 65% by volume and 70% by retail sales value.
Future said that across the group, games magazines provided the strongest revenue growth, with UK entertainment magazines also performing well and computing magazines ‘doing well to show any growth in testing market conditions.’
Chief executive Greg Ingham said that the second half has started satisfactorily. It is in H2 – and particularly Q4 – that Future has historically generated a substantial proportion of its profits.
“Although we remain cautious about market conditions overall, we continue to seek expansion both by acquisition, including Guitar World in the US for £10m, and by magazine launches across the Group,” said Ingham.
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