4 February 2013
Future plc
Interim Management Statement
Future plc (LSE: FUTR), the international media group and leading digital publisher, today announces its Interim Management Statement for the period from 1 October 2012 to the date of this announcement, incorporating the Group's first quarter for the three months ended 31 December 2012.
Trading Performance (Normalised*)
· Digital revenues up 24%
· Group revenues down 3% (UK down 1%)
· US continues on track for EBITDA** profitability in 2013
Normalised revenues in the first quarter were down 3%, driven mainly by the continuing managed decline of print activities in the US. The UK-based business performed solidly with normalised revenues down 1% year-on-year.
In the first quarter, digital revenues grew 24% year-on-year and now represent 23% of normalised revenues, compared with 18% for the first quarter of FY12. Digital advertising has grown to represent 54% of total advertising revenues, up from 45% a year ago. Normalised digital circulation revenues on iPads and other tablets have averaged quarterly growth of 16% over the last year, and we now have over 40 of our brands on Google Play's new Magazine Shop, which launched in December.
In the US, digital advertising now represents 74% of total advertising revenues (from 64% a year ago), reflecting the faster acceleration from print to digital platforms. First quarter losses in the US were lower than in FY12, as planned, and we maintain our expectation of EBITDA profitability in the US business in FY13.
Active Portfolio Management
Our active portfolio management has continued with the closure of certain print brands (PSM3 and Xbox World in the UK, and Nintendo Power and PlayStation - The Official Magazine in the US), and the launch of new digital brands (Gathered by Mollie Makes, tech., Photography Week and Football Week) as well as a new print title, Simply Crochet, which was launched on 10 January 2013. We will continue to manage the portfolio as the transition from print to digital progresses.
Financial Position
Net debt at 31 December 2012 was £16.8m, a reduction of 6% year-on-year, as expected. We expect to announce a new credit facility within the first half of the current financial year.
Outlook
We expect trading for the full year to be in line with our expectations. Print revenues remain challenging but we expect digital revenues to maintain a steady growth rate.
Mark Wood, Future's Chief Executive, said: "We are pleased to have achieved steady growth in our digital revenues in the first quarter. We will continue to focus on generating new revenues from our large, global online audience of 50 million unique users. We now sell digital editions on all the major tablet platforms and, through content partnerships, we are able to enter new markets, as most recently demonstrated by our move into English Premier League Football with Football Week."
Annual General Meeting
Future will hold its Annual General Meeting at 12 noon today at Future plc, 2 Balcombe Street, London NW1 6NW.
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Annual Report
An iPad app version of our annual report, created using our proprietary FutureFolio software, is available via iTunes: https://itunes.apple.com/gb/app/future-plc-annual-report-2012/id594130215?mt=8'
Enquiries
Future plc
Mark Wood, Chief Executive Tel: 020 7042 4007
Graham Harding, Chief Financial Officer Tel: 020 7042 4031
Chris Taylor, Director of Communications Tel: 020 7042 4033/07980 221942
Brunswick Group
Jon Coles / Andy Rivett-Carnac Tel: 020 7404 5959
Notes
* 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 31 December 2012, but include any new activities launched in that period. The analysis in this announcement is based on normalised results.
** EBITDA represents earnings before interest, tax, depreciation, amortisation and impairment of intangible assets.
About Future:
· 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 200 publications, apps, websites and events.
· We hold market-leading positions in Technology, Entertainment, Music, Creative and Sport & Auto sectors.
· We attract more than 50 million monthly global unique users to our websites, which include techradar.com, gamesradar.com, bikeradar.com and musicradar.com.
· Future sells more than 24 million magazines every year, that's 45 magazines sold every minute. Our most well-known brands include T3, Total Film, Classic Rock and Official Xbox Magazine.
· We deliver over 100 digital editions, selling over two million products in the last 12 months through Apple's Newsstand for iPad.
· Future exports or syndicates over 200 publications to over 90 countries, making us the UK's number one exporter and licensor of magazine content.
· Future is currently Consumer Digital Publisher of the Year for both the Association of Online Publishers and the Professional Publishers Association.
