18 July 2013
Interim Management Statement
Future plc, the international media group, today announces its Interim Management Statement for the period from 1 October 2012 to the date of this announcement, incorporating the Group's third quarter for the three months ended 30 June 2013.
· Normalised* Group revenues £76.2m, up 1%
· Group digital revenues up 24%
· Statutory EBITDA forecast at £9.5m (EBITDAE £8m) for the year
· Net Debt reduced by 46% to £9.2m
· Dividend resumed at year end
Digital revenues continued their strong growth, up 24% year-on-year, and advertising revenues are approaching 60% from digital markets. Digital edition revenues on the iPad and other tablets are 50% up on a year ago.
In the three months to June trading was below expectations, owing chiefly to continuing weakness in the Games market. The pipeline for the final quarter is strong, but following the challenges of recent months we are forecasting full-year statutory EBITDA results at £9.5m (EBITDAE £8m). Our US business continues to aim to operate profitably by year end.
The senior management and Board are not satisfied with the pace of improvement and have agreed to accelerate our cost saving programme to generate a £2-2.5m margin improvement in the coming year. This programme will continue until the cost base, still geared primarily to print, is better aligned with the changing business.
Net debt at 30 June 2013 was £9.2m, down 46% from 30 June 2012, primarily due to the sale of UK Rock titles in April for £10.2m.
The outlook for the final quarter is encouraging and we see good momentum building for revenue and profit growth in the next financial year. These trends, combined with cost reductions, have convinced the Board that we should resume dividends, suspended in 2011, with a final dividend this year.
Mark Wood, Future plc Chief Executive, said:
"We are disappointed to miss our target for the full year and as a result we are bringing forward plans to reduce legacy print costs and improve operating margins in the period ahead.
"We see encouraging trends across the business for the final quarter and the year ahead, including in the Games sector in the run up to major new console launches later this year, and anticipate delivering significant revenue and profit growth in the coming year."
Mark Wood, Chief Executive Tel: 020 7042 4007
Graham Harding, Chief Financial Officer Tel: 01225 788101/020 7042 4433
Chris Taylor, Director 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 2011 and 30 June 2013, but include the revenues and costs of 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).
· We have operations in the UK, US and Australia creating more than 200 publications, apps, websites and events.
· We hold market-leading positions in Technology, Games, Music, Creative and Sport & Auto sectors.
· Future sold more than 24 million magazines last year, that's 45 magazines sold every minute. Our most well-known brands include T3, Cycling Plus, Total Film, Mollie Makes and Official Xbox Magazine.
· Future has developed its own app-creation software, FutureFolio. We produce over 100 digital editions, and have now sold over five million digital copies.
· Future exports or syndicates 225 publications to over 89 countries, making us the UK's number one exporter and licensor of magazine content.
· Future has been named Consumer Digital Publisher of the Year for three years in a row by the Association of Online Publishers (2011, 2012, 2013) and is currently the Professional Publishers Association Digital Publisher of the Year and the British Media Awards Media Company of the Year.