31 July 2012
Interim Management Statement
Future plc, the international specialist media group and leading digital publisher, today announces its Interim Management Statement for the period from 1 October 2011 to the date of this announcement, incorporating the Group's third quarter for the three months ended 30 June 2012.
· Normalised* Group revenues £87.9m, down 4%
· UK normalised revenues up 1%
· Group digital revenues up 30%
· US remains on track for profitability in 2013
· Net Debt £17.1m, in line with expectations
As we highlighted at the half year, results for the full year depend on a significant second-half weighting on profitability. Although in the three months to June trading was slightly below expectations the positive momentum we noted at the half year continues and we believe we are on track to deliver full year results in line with our expectations.
We have achieved strong growth of digital revenue at 30%, with further increases in our digital edition sales on the iPad and other tablets in the third quarter - we have sold in excess of 1.7 million copies of our products through Apple's Newsstand since its launch in October 2011.
A key part of our strategy is to diversify our revenues in the US and during the period we launched US versions of two of our top digital platforms: TechRadar and BikeRadar. The former is the market leading consumer technology website in the UK, and its monthly US unique users now stand at 3.3 million, up 228% year-on-year, while BikeRadar US unique users are up 47% year-on-year.
Our excellent track record in digital innovation continues to be recognised by the publishing industry. Future was named Consumer Digital Publisher of the Year by the UK Association of Online Publishers in July, becoming the only UK media business to win the accolade for two years in succession.
Net debt at 30 June 2012 is in line with our expectations at £17.1m, up 10% from 30 June 2011 primarily due to restructuring costs incurred in the past year.
Trading conditions continue to be challenging and volatile and we take a cautious view. However, as a result of the positive momentum on revenues and with cost savings coming through, we believe we are on track to deliver full year results in line with our expectations.
Good progress in our US operations and an improving US advertising environment underpin our confidence in returning the US business to EBITDA profitability in the coming financial year.
Mark Wood, Future plc Chief Executive, said:
"We have made further progress in transforming Future into a more digital business, building strong sales on tablets and building our online properties in the US. The profile of Future is changing at a rapid pace, and we are excited by the prospects."
Mark Wood, Chief Executive Tel: 020 7042 400
Graham Harding, Group Finance Director Tel: 01225 788101
Chris Taylor, Head of Communications Tel: 020 7042 4033/ 07980 221942
Jon Coles / Andy Rivett-Carnac Tel: 020 7404 5959
* Normalised results are presented to better reflect the current size and structure of the business and give a better indication of the performance of the ongoing business. The normalised results exclude revenues and costs relating to activities closed or divested between 1 October 2010 and 31 July 2012, but include any new activities launched in that period.
About Future plc:
Future plc is an international media group and leading digital publisher, listed on the London Stock Exchange (symbol: FUTR). Founded in 1985 with one magazine, today we have operations in the UK, US and Australia creating 200 special-interest publications, apps, websites and events. We hold market-leading positions in Games, Film, Music, Technology, Cycling, Automotive and Crafts. Our biggest-selling products include T3, Total Film, Classic Rock and Official Xbox Magazine. Our websites include gamesradar.com, bikeradar.com, musicradar.com and techradar.com (the UK's number one consumer technology website). Future sells 2.2 million magazines each month; we attract more than 38 million monthly unique visitors to our websites; and we deliver over 100 digital editions and bespoke apps on tablet. Future exports or syndicates publications to 89 countries, making us the UK's number one exporter and licensor of magazine content. Future was named Consumer Digital Publisher of the Year for the second year running at the Association of Online Publishers Awards 2012.