Future Sets Maiden Dividend As Revenue Rises 11%

The group said that turnover was up by 11% to £182.7 million, whilst operating profit rose by 24% to £22.5 million. Earnings per share rose from 4.4p in 2002 to 4.9p and adjusted pre-tax profit rose by 21% to £22.7 million. The Board has recommended a first dividend of 1.25p per share for the full year 2003.

Future Network publishes a range of specialist magazines and websites, with an emphasis on gaming and computing titles. The gaming portfolio now contributes 46% of group revenues and 45% of profit. Its largest title is the US version of Official Xbox Magazine.

Future describes trading in the gaming sector as ‘good’, whilst the computing market is ‘difficult’. Its computing titles provide 32% of magazine revenues. Conditions in the entertainment publishing sector are described as ‘strong’.

Regionally, the UK market is described as ‘solid’; the US is ‘very strong’ and Europe is ‘better’. Overall circulation revenues at the company were up by 12%, whilst advertising revenues rose by 9%.

Over the course of the year Future published 23 new monthly magazines, comprising 15 launches and 8 acquisitions. In October, the group acquired the US’ second best-selling guitar magazine, Guitar One, from Cherry Lane Magazines for £1.5 million (see Future Buys Second US Guitar Magazine Group). Earlier in the year the company also bought Guitar World and related titles for £10 million (see Future Network Profits Up 22%, Buoyed By Strong US).

“The Future Network is an international business which has traded well in 2003. It is growing, and is in a strong position in the field of special-interest consumer magazine publishers,” says chief executive Greg Ingham.

Current trading is in line with internal expectations and the group says it views its prospects positively.

Shares in Future Network were up by 3.4% at 69.25p by 10.30am today.