Transformation begins to pay off for Future

Charlotte Henry
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FUTURE Media yesterday announced results for the first half of 2015 to 31 March, which showed the company beginning to turn around its fortunes.

The media group and digital publisher reported earnings before interest, tax, depreciation and amortisation (Ebitda) of £1.8m, reversing a loss of £3.7m in 2014. Revenue was £30.8m, down from £35.8m in 2014. Yet overall loss before tax was £1.3m compared with £24.3m in 2014.

The company said its balance sheet had been strengthened, with net cash of £4.7m on 31 March

Future has been undergoing a major transformation programme, which began in 2014 and that the company says is almost complete.

Chief executive Zillah Byng-Maddick said: “Both the UK and US businesses have reported profits in the first half – in the US, this is the first time in seven years – as the Transformation programme starts to deliver results and puts us on a stable footing.”

Future said its digital reach was up seven per cent year-on-year, with its major sites TechRadar and PC Gamer growing in the first half. TechRadar now has an audience of 19.9m, while PC Gamer’s audience has doubled to 8.2m over the last year. The firm’s GamesRadar site now has an audience of 7.9m.

Overall, Future said it is now managing a steady decline in its print offering, and instead it will focus on building digital and diversified revenue streams from advertising, events, licensing and e-commerce.

Digital advertising revenue was up 14 per cent year-on-year, and combined digital and diversified revenues make up half of the company’s total revenue.

Byng-Maddick said: “Momentum is clearly building, with half our revenues now coming from digital and diversified activities. This is an important milestone for the business.”

On the back of the results, shares in Future closed up 1.19 per cent yesterday, ending the day priced at 10.62p.