12th May 2005 07:01
Future PLC12 May 2005 12 May 2005 Future plc Acquisition of Cheat Planet for £4.6m Future plc ('Future'), the international special-interest consumer magazinegroup, today announces that it has acquired Cheat Planet (www.cheatplanet.com),the US computer games website, from Echo Software and Hardware LLC for a cashconsideration of $8.7m (£4.6m) which will be funded from Future's committed bankfacilities. Launched in 1997, www.cheatplanet.com is the number one cheat site (by sitevisitors and page views) and is the fourth largest computer games website* inthe US. It attracts 6.1 million unique visitors per month, of which 40% are fromoutside the US. Because Cheat Planet's content is reader-generated and has alonger shelf life than news or reviews, it requires limited editorial input andtherefore has operated on high profit margins. For the year ended 31 December2004, Cheat Planet's revenues were $0.9m and pre-tax profits exceeded $0.8m. As announced on 29 April 2005, Future plans to increase its US internet presenceand this acquisition forms a key part of that plan, entailing increased spendingby Future US as it develops its games website activities. There will beadditional second-half expenditure in this area and accordingly the overalleffect of today's announcement is not expected to have a positive impact onearnings. The acquisition complements Future's existing games websites. Future UK hasbuilt its games websites to profitability with www.gamesradar.com andwww.computerandvideogames.com now attracting 1.2 million unique visitors eachmonth. Commenting on the acquisition, Greg Ingham, Future's Chief Executive said: "This is an exciting development which propels Future to fourth position in theUS online games information sector. It fills a gap in our existing portfolio andgives us immediate critical mass from which we plan to build in the US at a timewhen US Internet advertising spend is rising strongly. "Cheat Planet is already one of the world's leading cheats and tips websites butas part of Future we can drive more traffic from our existing websites andmagazines. Moreover, our international skills open up further opportunities tomaximise the value of the content Cheat Planet has created." *Comscore Media Metrix, January 2005; Gaming Information Key Measures Report Enquiries: Future plc Tel: 01225 732281John Bowman, Finance Director Hogarth Partnership Tel: 020 7357 9477James Longfield/Georgina Briscoe Notes to Editors * In May, research company eMarketer revised its Internet advertising spend projections upwards stating that ad spending is projected to grow by 34% this year rather than the 21% it predicted earlier (source: AdAge.com). About Future Future plc was founded in the UK in 1985. Today, it publishes over 100special-interest consumer magazines and websites worldwide with strongportfolios in the computing, games, music, sports, motoring, crafts and leisuresectors. Future employs 1,200 people in offices in the UK, US, France and Italy.Over 100 international editions of Future's magazines are also published underlicence in 30 other countries across the world. The company is listed on theLondon Stock Exchange (symbol FUTR). This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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