Future Publishing reports £19m loss

Magazine publisher Future cancels dividend until 2013 after £19.3m loss

Future, publisher of titles including Fast Car and Metal Hammer, has cancelled all dividends until 2013 after slumping to a £19.3m loss for the year to the end of September.

The company, which dramatically axed chief executive Stevie Spring last month, saw a £5.5m profit in 2010 slump to a £19.3m loss as the publisher was hit by a torrid performance in its US operation.

The publisher said that it is introducing a dividend "holiday" after being forced to significantly increase loans from £7.4m to £11.8m.

"The board recommends a dividend holiday until group borrowings have reverted to less than two times bank EBITDA [earnings before, interest, tax, depreciation and amortisation], which we anticipate happening at the beginning of the 2013 financial year," the company said.

Adjusted earnings per share slumped 71% from 2.4p to 0.7p. Future paid an interim dividend of 0.5p on 3 October.

"Future delivered disappointing results for the past year," said Mark Wood, chief executive of Future Publishing. "While the UK business showed resilience in challenging conditions, the US operations tipped back into loss, pulling down the group's overall final results."

The US operation crashed to a $5.6m loss – in 2010 it had been $300,000 in the black – as circulation revenues slumped 25% and ad revenues fell 9%.

The company said that measures were in place to reduce scale of exposure and return US to profitability by 2013.

"We are migrating the US business to a predominantly digital model and have taken steps to de-risk remaining print properties," the company said.

The UK operation, which accounts for 73% of total revenues, has proved to be "resilient" with digital revenue growth of 36% offsetting the ongoing decline of income from print.

Revenues fell just 2% to £103.4m with profits down 3% to £12.5m.

Circulation revenue fell 3% to £64.6m, while ad revenues grew by 1% to £28.1m.

To contact the MediaGuardian news desk email editor@mediatheguardian.com or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. If you are writing a comment for publication, please mark clearly "for publication".

To get the latest media news to your desktop or mobile, follow MediaGuardian on Twitter and Facebook.

Contributor

Mark Sweney

The GuardianTramp

Related Content

Article image
Future Publishing reports 45% fall in profits
Magazine publisher says market remains challenging as revenues fall to £68m. By Mark Sweney

Mark Sweney

20, May, 2011 @10:00 AM

Article image
Shares in magazine publisher Future fall 20% after it reports £19.3m loss

Publisher blames torrid year on its US operations and freezes dividend until 2013. By Mark Sweney

Mark Sweney

24, Nov, 2011 @6:20 PM

Article image
Future Publishing cuts directors' pay by a quarter
Publisher takes action in 2011 after slumping to a £19m loss but awards newly promoted senior execs with a 10% pay rise. By Mark Sweney

Mark Sweney

13, Jan, 2012 @12:34 PM

Article image
Future Publishing cuts more than 400 jobs as part of restructure
Total Film publisher reports £35.4m loss in year to end of September, with digital making up 63% of total ad revenue

Mark Sweney

21, Nov, 2014 @9:39 AM

Article image
Future Publishing to cut more than 200 jobs and sell sport and craft titles
Publisher reports £30.6m pre-tax loss in its first half year as it signs deal to sell off magazines to Immediate Media for £24m. By Mark Sweney

Mark Sweney

29, May, 2014 @10:02 AM

Article image
Future Publishing to cut 55 jobs
Restructuring from print-based business to digital publisher sees company downsize back office. By Mark Sweney

Mark Sweney

03, Sep, 2013 @12:25 PM

Article image
Future reaches digital 'tipping point'
Stevie Spring speaks of 'big story' as digital growth outstrips print decline for first time. By Mark Sweney

Mark Sweney

20, May, 2011 @4:51 PM

Article image
Future to sell or close eight magazines
Publisher admits there will be up to 100 redundancies as it battles against a fall in profits. By Josh Halliday

Josh Halliday

20, Jul, 2011 @1:44 PM

Article image
Future Publishing sells New York operation for $3m
Magazine publisher Future has sold its loss-making New York division to NewBay Media. By Mark Sweney

Mark Sweney

13, Jan, 2012 @8:06 AM

Article image
Future Publishing reports first US profit in seven years
T3, Gizmodo and Total Film publisher also reports 50% of its revenues now come from digital and diversified businesses

Mark Sweney

18, May, 2015 @8:54 AM