22nd May 2020 10:09
(Alliance News) -Â Magazine publisher Future PLC on Friday said it had an "exceptionally strong" first half as profit increased more than three-fold.
For the six months to March 31, revenue jumped by a third to GBP144.3 million and pretax profit more than tripled to GBP27.1 million. Organic revenue growth totalled 11%.
Covid-19 impacted the end of the period, the firm said, driving an acceleration of online audience growth which helped to offset a significant slowdown in news stand trade as travel stores shut and the cancellation of three large events in March.
Online users were up 26% in the half to 253 million year-on-year, with Covid-19 lockdowns resulting in the firm achieving a record 329 million online users in March alone.
Both Future's UK and US operations performed well, with UK revenue up 11% and US sales up 53%.
"We are seeing a rapid acceleration in the migration to online with a significant growth in online users looking for both entertainment and advice in their areas of interest as well as a rapid shift towards online retail. Future's diversified business model, global footprint and strong financial discipline means that we have been able to withstand the immediate challenges of the pandemic," said Chief Executive Zillah Byng-Thorne.
Looking forward, the firm said its second half trading is continuing to show strong momentum and it remains confident in achieving its full-year expectations.
"Our performance in the first half of the current year has been extremely strong; the downturn due to Covid-19 makes market conditions uncertain for the remainder of the year," Byng-Thorne added. "However, due to our operating model, strategy and diversified revenue streams, the group is well placed to navigate the challenges ahead."
The challenges facing magazines due to Covid-19 means the company has been thinking about its long-term operating model and is now preparing for a likely acceleration in online readership and a migration of more advertising revenue into digital.
Future did not propose an interim dividend, in line with last year.
Shares in Future were up 4.8% at 1,144.00 pence in London on Friday.
By Lucy Heming;Â [email protected]
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