Tag Archives: Future

Future PLC ‘considering options’ for US division

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Magazine publisher Future has said it is “considering a wider range of strategic options” for its US division in light of “challenging” conditions for the business.

In pre-close trading update the publisher said its position in the US “is significantly more challenging” than the UK. In July Future announced plans to “accelerate the transition of Future US into a primarily digital business”.

But this week, in a report preceding full-year earnings in November, the group said trading conditions in the US “reflecting ongoing weakness and decreasing visibility at newsstand” means the board is now considering a wider range of strategic options. PaidContent reports that the language used suggests the company “now may look to sell its business there”.

The publisher also confirmed that 10 per cent of its workforce has been cut in the UK and worldwide, which equals around 100 jobs, as part of its restructure to focus on digital and print efficiencies.

The company also claims in the latest report that the trends identified in its Interim Management Statement, published in July, have continued.

Revenues for the twelve months ending 30 September 2011 are expected to be down 6 per cent on last year, in constant currency.  The Board remains comfortable with market expectations of results for 2011, subject only to any period-end adjustment required in relation to US newsstand returns, beyond those already announced and incorporated into fourth quarter estimates.

Voluntary redundancies as Future Publishing focuses on digital

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Magazine publisher Future PLC is to cut around 100 jobs based in the UK and worldwide – in a move favouring digital over print.

The job losses are expected due to “restructuring” in the company, following a 5 per cent circulation revenue fall in the past nine months.

In a statement, it said the websites were performing well and the main problems were in America.

In an email to staff, Future Publishing UK CEO, Mark Wood, said restructure would be likely to result in about 10 per cent of the firm’s workforce being made redundant. This however, would mostly be through voluntary redundancies.

The company – which publishes around 80 magazines and has 1,000 staff in Bath – said advertising revenue from its websites has offset a decline in print-related income.

The business is executing its operational review of geography and function, to accelerate the move of the US business to one that is a primarily digital business model, simultaneously reducing volatility associated with print data flows, and to reorganise the UK business, re-calibrating it to ensure faster adaptation to digital and more efficient execution of print.

The benefit of these steps will be to improve efficiency, reduce headcount, reduce property requirements, and help accelerate the most promising areas of digital product development.

Digital revenue helping magazine publisher Future get back on track

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Increases in customer publishing and digital revenue have helped magazine publisher Future get “back on track”, according to the company’s preliminary results for the year ending 30 September.

In the report, published today, Future claims that its overall revenues have declined by 1 per cent on last year, with net debt reduced by more than 50 per cent.

The publisher adds that its US business has returned to profit while customer publishing revenue has grown by 43 per cent in the last 12 months.

Advertising revenues declined by five per cent overall, but individually online advertising (which makes up 25 per cent of the advertising revenues) rose by eight per cent.

In the report Stevie Spring, Future’s chief executive said the results show the publisher is back on track.

We’ve returned our US business to profit – a key goal for the year. And made good progress against our strategic priorities – adapting and investing in our business to meet the needs of a rapidly changing content landscape.

Consumer confidence is still fragile on both sides of the Atlantic, so our outlook for 2011 must remain cautious even though we’ve seen an encouraging 5 per cent growth in the second half of 2010.

MediaGuardian: Charging for online news won’t work, says Future’s Spring

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Introducing a pay wall around general news content hasn’t got ‘a cat in hell’s chance’ of working, Stevie Spring, chief executive of magazine group Future, said yesterday.

Spring discussed Future’s approach to paid content online and said the group is experimenting with a mixture of business models.

Full story at this link…

Future: Digital ads going from strength-to-strength

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Specialist magazine publisher Future has reported a resilient and ‘healthy balance sheet’ in the face of recession with a 15 per cent increase in online advertising revenue in the nine months to June 30.

The company released an interim management statement today, which suggested that although print advertising revenues were down 8 per cent, this was offset by the growth in online advertising – resulting in a total fall of only 4 per cent.

Online ads represented 22 per cent, nearly a quarter, of total advertising revenue – up 19 per cent year-on-year – over the same period.

In the company’s interim report, CEO Stevie Spring said: “While it is premature to talk about a market recovery, there has been no deterioration in trading conditions since the half year.”

A third of the group’s revenue comes from its US operation and it capitalised on a favourable US exchange rate against the sterling with a 24 per cent stronger US dollar in the reported period.

As a result, the publisher had come out relatively unscathed through what it called ‘exceptionally challenging market conditions’, with an overall revenue decline of just 2 per cent, or 9 per cent calculated on a constant currency basis.

Publishing revenues

In the UK, which generates the remaining two thirds of the company’s income, publishing revenue, based on constant currency, was down 6 per cent. The fall in revenue was mainly due to a decline in PC gaming, personal computing and automotive titles, the report suggested.

In the same period, publishing revenues for the US operation fell 13 per cent, on a constant currency basis. The publisher blamed ‘greater exposure to generic advertising market volatility’ in the territory, particularly with regard to its digital business.

Future’s future

Future produces more than 80 newsstand magazines, 62 websites and 25 annual live events on special-interest topics, such as computer games, film, music and sport.

Spring, who according to paidContent:UK, ‘never talks down the health of the magazine industry’, was bullish about the future of the publisher:

“I am confident that when recovery comes, Future is well-positioned to benefit. We’ve continued to invest in both new products and new people and, more broadly, our strategy remains firmly on track. We are in the best shape we can be in for the mid-term,” he said.

Future’s annual results for the year to end of September will be announced on November 26.

Launch-time round-up: TotalFilm.com revamps; Politick magazine targets 18-35s; ecoforyou launches

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A press release courtesy of magazine publisher Future tells of the relaunch of TotalFilm.com – complete with a new editorial team for online.

Andy Lowe, acting digital editor, and George Walter, who has temporarily moved from GamesRadar.com to work as launch editor, will head up the online staff. Contributions to the site will also come from the print magazine team.

The new look site promises ‘hubs’ of content for individual films, in particular new releases, aggregating user comments and related external links. Video on the site has also been ramped up, with more use of clips for Q&As with actors and directors.

In the print sphere: Politick!, a £3.99 quarterly ‘aimed at young people 18-35’ (good news for anyone over 30 – that’s officially young then), is preparing for its debut.

The title, which claims no political bias in a press release, hopes to better engage young people with politics and the political process.

“This isn’t about us telling them we like the Arctic Monkeys. And this isn’t about Cameron, Brown or Clegg. We’re not going to tell anyone who to vote for or what to think. We just want to help young people to realise that they can change the world,” says editor Laura-Jane Foley.

Good luck to Politick! – that’s no mean feat…

Finally – ecoforyou, the green living, digital magazine announced by PlanetInk earlier this month, has launched. The first issue is free from the magazine’s site and boasts video, 34 full-colour pages and Flash animation. A text-only format, which is compatible with screen readers, is also available.