Future posts pre-tax loss of £49m
Publisher 'disappointed', sells off Italian division to reduce debt
Recently appointed Future Publishing CEO Stevie Spring has admitted the company has under-invested in it assets - leading to a pre-tax loss of almost GBP 50 million.
The company, which publishes a range of videogame magazines including Edge and The Official Xbox Magazine, posted a pre-tax loss of GBP 49 million (EUR 72.5 million), compared to a profit of GBP 12.5 million (EUR 18.5 million) in 2005.
Underlying profits measured by EBITAE slid to GBP 13.7 million (EUR 20.2 million), down from GBP 20.4 million (EUR 30.1 million), with the group taking a non-cash impairment charge of GBP 45 million (EUR 66.5 million) against the value of its assets.
"It is clear with hindsight that during the past two years, Future over-invested in acquisitions and under-invested in organic development," said Spring.
"The consequences of this strategy are clearly evident in today's disappointing results, with underlying profits down by a third and some significant exceptional charges and write offs."
The publisher has also revealed it is disposing of Future Media Italy to Sprea Editori for the cash sum of EUR 1.1 million, in order to reduce its level of bank debt.
Spring also admitted that the company could face further trouble in the coming year, stating: “We continue to take a cautious view of our markets and anticipate that trading conditions will remain challenging throughout 2007.”
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