Blog Post

Earnings: Future’s Profits Shrink As Online Investment Grows

image Specialist magazine publisher Future says it’s making “real progress” in developing its digital network and spent an extra £1.4 million in online publishing in the six months to March 31. Online now makes up 24 percent of the group’s total revenue, compared with 19 percent the same period last year and online advertising grew by 18 percent (four percent at constant currency rates.)

But — that doesn’t mean the company’s profits are going in the right direction. The company made revenues of £76.6 million in its H109 — £1.7 million lower in constant currency terms than the same period 12 months ago — and pre-tax profits of just £1.2 million, compared to £4.1 in H108. UK profits, however, increased by two percent, and Future stresses that these results don’t include all the cost savings its been making through redundancies and restructuring.

More launches: A true believer in the power of magazines, Future CEO Stevie Spring doesn’t sound like she’s going to let the drastic structural and cyclical collapse in the magazine industry stop her company launching new titles. She says (via Guardian.co.uk): “We have had three print launches already this year