Digital and games magazine publisher Future (FUTR) is transferring its subscribers from print to digital-based formats - but that comes with challenges. Specifically, digital subscribers are proving less profitable than their print-equivalents which, when added to tough games market conditions, ahead of new console releases from Microsoft and Sony, helped half-year cash profit fall 23 per cent year-on-year to £0.3m.
The subscriber balance helps demonstrate that challenge. For instance, digital subscriptions grew to 311,000 from last year's 175,000, with the number of digital editions sold per month having reached 432,000 - that's catching up with the print side's 681,000 subscribers. But digital generates just £12.4m of revenue, compared with £37m from print. Still progress within digital is being made and sales of digital editions on tablets like the iPad grew 56 per cent year-on-year. Geographically, meanwhile, Future remains heavily focused on the UK - which generates 83 per cent of sales, but where revenue was flat at £41.3m. Although US sales fell 8 per cent to £8.4m - reflecting a decline in circulation and advertising. The sale of UK rock titles last month for £10.2m, however, has boosted Future's post period-end cash balance.
Broker Numis Securities expects adjusted full-year pre-tax profit of £5.3m, giving adjusted EPS of 1.1p (2012: £4.8m/1.1p).
FUTURE (FUTR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 17p | MARKET VALUE: | £56.6m | |
| TOUCH: | 15.3-16.5p | 12-MONTH HIGH: | 21.8p | LOW: 9.1p |
| DIVIDEND YIELD: | nil | PE RATIO: | 85 | |
| NET ASSET VALUE: | 19p* | NET DEBT: | 27% | |
| Half-year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 61.1 | -0.70 | -0.30 | nil |
| 2013 | 54.6 | -0.30 | -0.20 | nil |
| % change | +12 | - | - | - |
Ex-div:- Payment:- *Includes intangible assets of £89.2m, or 27p a share | ||||
