20th Apr 2020 09:31
(Alliance News) - Magazine publisher Future PLC on Monday said it expects store closures due to lockdowns to dent its sales and added that it has been forced to furlough some staff.
The FTSE 250 firm, which owns football title FourFourTwo and music magazine What Hi-Fi?, said its audience numbers "remain strong" with some assets benefiting due to consumers searching for "advice and inspiration" during the pandemic.
Tom's Guide, Future's tech product review title, had its "biggest month ever" in March, with 22 milion users.
"Our digital revenue performance continues to be encouraging with, to date, continued strength in e-commerce, and although digital advertising is experiencing some reduction in yields this is offset in the main by audience growth," Future said.
Magazine sales have been hurt by high street store closures, however. In the UK, stores not offering essential purchases were forced to close as part of lockdown measures made to contain the deadly coronavirus.
Future added: "Whilst we expect a significant reduction in sales in the coming months, our digital copies and subscriptions are performing well.
"Future has carried out a number of cost-saving measures. This includes the reduction in supply of magazines to retail outlets, the acceleration of the closure of a number of marginal magazine titles, a reduction in the variable costs associated with events, a 25% reduction in discretionary costs, and some salary savings, including the furlough of some staff in impacted areas."
Senior management and board members also took a 20% salary cut in March.
At newly-acquired TI Media, Future expects the impact from Covid-19 to be greater, due to the unit being "less diversified".
"Magazine newsstand revenues have been impacted during the period of lockdown, with UK newsstand revenues reduced by approximately 30% since the introduction of lockdown measures on March 23," Future said.
TI Media, acquired by Future for GBP140 million, received the approval of the UK's monopoly regulator last week, but only if it sells the WorldSoccer, Amateur Photographer, and Trustedreviews.com assets.
Future said: "We are pleased to announce today that Future has agreed the sales of World Soccer and Amateur Photographer to Kelsey Media, and Trusted Reviews to Incisive Media. These sales are expected to complete in the next few weeks."
Future is penned to release its results for the six months ended March on May 22.
Shares in the company were 1.5% higher at 1,035.13 pence each in London on Monday morning.
By Eric Cunha; [email protected]
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