Future, the Bath-based publisher, has blamed a cyclical decline in the computer games market for a fall in earnings and revenues.
Earnings tumbled by 23% to £2.2m on a 1% fall in revenues to £56.4m in the half year to Mar
ch 31.
However, group digital revenues rose 33% year-on-year and now represent 25% of group revenues while the sale of its UK rock titles in April for £10.2m strengthened its balance sheet to support continued investment in the transition to a predominantly digital business, it said.
Looking ahead Future said momentum was building for strong second-half despite the macro environment remaining challenging. New initiatives would add to revenues in the second half and beyond and its full-year results were on track to be broadly in line with expectations.
Chief executive Mark Wood said: “We experienced some difficult trading conditions in the first half, above all in the games market, which has been in a trough ahead of new console releases from Microsoft and Sony. However, the first half figures mask tremendous progress towards a predominantly digital business, reflected in a 33% growth in digital revenues.
“Our refocusing of the US business is on track to meet our commitment to return the US to EBITDAE profitability this year.
“Despite continued challenging conditions, and the impact of the Games cycle, we are seeing increased momentum on commercial revenues, contributions from new initiatives and bottom line improvements from cost efficiencies. These all point to a strong performance in the second half of the year, much as we saw in FY12, and we believe we are on track to achieve results broadly in line with our expectations.”
