Future hit by circulation and ad declines

Hobby magazine publisher Future saw a decline in revenues in the half year to 31 March as the economic climate forced many enthusiasts to reduce their spending.Reported pre-tax profit was down to £1.2m from £2.2m on revenues that fell to £68.8m from £71.4m. Revenues in the UK were down to £49.4m from £50.7m, despite higher sales in photography, cycling and music and a halt in the decline in games ad revenue. In the US, where bookstore closures and retailers no longer stocking magazines has hurt trading, revenues fell to £19.7m from £21m."Trading in the first half was challenging, yet we've seen six months of an accelerating pace of change as the arrival of powerful mobile devices increases digital content consumption," said chief executive Stevie Spring. "The decline in profits includes maintained planned investment, particularly in digital, as we continue to transition our business for the future."Future's titles include Classic Rock, Guitar World and the official Xbox Magazine. It has been hit by falls in circulations and advertising, which declined by 7% to £40m and by 4% to £20.4m respectively in the six month period."A realistic outlook, a focussed business, a strong balance sheet and a talented, dedicated and creative team, all support the Board's confidence that we remain on plan for 2011 and as well-positioned to take advantage of the fast-changing media and technology landscape as we can be," the company said.---RG Future