Reaching 58 Million Global Unique Users Every Month 01 Future Plc
Total Page：16
File Type：pdf, Size：1020Kb
Future plc Annual Report and Accounts 2013 Reaching 58 million global unique users every month 01 Future plc Group highlights Overview Future plc is an international media group and leading digital publisher, listed on the London Stock Exchange (symbol: FUTR). These highlights refer to the Group’s annual results for the year ended 30 September 2013. Revenue Net Debt £112.3m £(6.9)m 2012: £123.5m (-9%t ) 2012: £(14.1)m +51%s EBITDAE represents EBITDAE Pre-tax Profit earnings before interest, tax, depreciation, amortisation and exceptional items. £7.6m £5.8m 2012: £9.4m (-19%t ) 2012: £1.1m (+427%s) EBITE represents earnings EBITE Dividend per Share before interest, tax and exceptional items. £4.7m 0.2p 2012: £6.8m (-31% t) 2012: - A Year of Awards Future has won more than 40 major industry awards in the last twelve months. Highlights include: 04.13 05.13 05.13 Future US’s integrated Hyundai/Walking Dead Future is named Media Company of the Year Future’s Consumer Insight unit wins at the digital and experiential campaign is named at the British Media Awards in May. Future International FIPP Research Forum Awards winner of the Excellence Award at the annual is the biggest winner on the night: Digital 2013 for its research into ‘Embracing the international Communicator Awards, recognising Camera also wins Print Product of the Year Opportunity of Apple’s Newsstand’. Judges big ideas in marketing and communication. and the Marketing team behind Mollie Makes said: “This is an outstanding piece of is named Media Marketing Team. research into ways of making the most of the potential for digital platforms.” Annual Report and Accounts 2013 02 Strategic Report Strategic Report 01 Group highlights 03 Chairman’s statement 05 Chief Executive’s review 07 Business model 09 Where we operate 11 What we do 13 Business review 19 Risks and uncertainties 21 Corporate responsibility Normalised Digital Revenues Normalised Digital Advertising Financial Review Financial Review 23 Financial review +38% 59% year-on-year of total advertising revenues (2012: 48%) Normalised Unique Users Normalised Digital Edition Revenues 57.7m +44% a month (+14% year-on-year) year-on-year Corporate Governance Corporate Governance Normalised results are presented to better reflect the current 29 Board of Directors size and structure of the business and give a better indication of the performance of the ongoing business. The normalised 31 Directors’ report results exclude revenues and costs relating to activities closed or divested between 1 October 2011 and 30 September 2013, but 35 Corporate Governance report include any new activities launched or acquired in that period. 41 Directors’ remuneration report 52 Independent auditors’ report Financial Statements Financial Statements 55 Financial statements 88 Normalised results 89 Notice of Annual General Meeting 94 Investor information 06.13 09.13 Future secures the Association of Online Future picks up the Consumer Digital Publishers’ Award as Consumer Digital Publisher of the Year Award at the Professional Publisher of the Year for an unprecedented Publishers Association for the second year third year running. Judges praise Future’s running. Future is now unprecedented in “outstanding achievement in the digital winning all of the ‘big three’ industry awards in media environment”. a single year. 03 Future plc Chairman’s statement Gathering momentum We are pleased with the results, which show the business gathering momentum in the second half and ending the year with every sector performing well. We believe the advances in digital revenues mark an important turning point for the business, with advertising revenues now two thirds digital. Peter Allen Chairman “ The improvement in The strategy agreed by the Board The improvement in performance over the past two years to diversify and the encouraging trends as we performance and the revenues and reduce dependence entered the 2013-14 financial year encouraging trends as we on print is clearly delivering the were seen by the Board as justifying entered the 2013-14 financial anticipated results. Digital and a resumption of dividend payments, year were seen by the Board Diversified revenues − including which were suspended in 2011. We revenues from digital circulation, will therefore pay a dividend of 0.2p as justifying a resumption of digital advertising, digital commerce, per share for all shareholders on the dividend payments.” FutureFolio, Future Plus and events register as at 14 February 2014. This − are now one third of the business decision reflects confidence in the and we are on a trajectory to maintain business and the prospects for the this momentum. period ahead. It has been particularly encouraging to We are delighted to welcome Zillah see an effective focus on increasing Byng-Maddick as Chief Financial monetisation of our digital traffic and Officer. She brings with her invaluable to follow the development of our digital experience of managing the print- agency activity in the US and the UK to-digital transition at Trader Media, as a substantial new business. publisher of Auto Trader. We thank her predecessor, Graham Harding, We have placed great emphasis on for his contribution as CFO and many managing our operating margins, and years of distinguished service to continue to re-engineer our cost base Future and we wish him well. as part of that focus. We are pleased with progress in this area and the efforts undertaken to reduce costs in the UK and streamline the business organisation by removing some layers Peter Allen of management. Chairman Annual Report and Accounts 2013 04 Strategic Report The Future Mission To reach and grow high-value global audiences with world-class content produced by talented experts; and to be tireless innovators in the way we engage with those consumers and generate value for Future and our commercial partners. Financial Review Corporate Governance Financial Statements 05 Future plc Chief Executive’s Significant progress review Future has achieved further significant progress in the transition to a diversified digital business and delivered revenue growth, despite challenging trading conditions over much of the year. Digital revenues rose 38% − the highest rate of growth in recent years − and we passed a significant inflection point, with more than half of all advertising revenues (59% across the Group) now digital. This demonstrates how far the business has developed in its digital transformation. Mark Wood Chief Executive Our strategy Driving Future’s transformation into a The past 12 months have 01. global, digitally-led content business seen Future make good progress against its strategy as we maintain momentum Focussing on building brands across towards digital transition and channels – TechRadar is our no.1 priority diversified revenues. 02. Innovating digitally to increase audience 03. engagement and diversify monetisation Managing our print assets for 04. cash generation Constantly controlling costs & targeting 05. investment to manage margin Overview a loss in the prior year of £2.7m, with growth in digital revenues more than offsetting print Overall, Digital and Diversified revenues − declines. A cyclical decline in the Games market including revenues from digital circulation, was a significant drag on the business in the digital advertising, digital commerce, software first three quarters. But by the fourth quarter business FutureFolio, custom publishing Games had substantially recovered and trading business Future Plus and events − made up was stronger in Q4 across all other sectors. 32% of the business. During the second half a number of key As a result of disposals and restructuring we elements of the transition programme were have strengthened the balance sheet, net delivered: the US was operating profitably and debt has been halved to £6.9m (leverage 0.99 restructuring activity in the UK was completed times) and a new four year £25m maturing which will deliver margin benefits in 2014. credit facility agreed. Second half performance was significantly better than the first half and, after an encouraging fourth quarter, we Digital growth across all key brands entered the 2013-14 financial year with forward advertising bookings pacing ahead of last year. We increased our digital reach by 14% to 58 million unique users (UUs) a month. Future For the year as a whole, revenues grew by 3% now has 14 websites that each attract more than and profit before tax came in at £1.9m against one million UUs a month. We achieved greater Annual Report and Accounts 2013 06 Strategic Report No.1 No.1 No.1 PC Gamer is the world’s BikeRadar is the world’s MusicRadar is the world’s most popular PC most popular cycling most popular website gaming website reviews website for musicians Financial Review audience engagement across the portfolio, with Warehouse, Canon, Microsoft and Tesco. new titles into areas where we identify page views rising 19% to 328 million, increased In the fast-growing Photography market, Future opportunity for revenue and profit growth. dwell times and a 32% increase in average is the market-leading publisher in print and Recent new launches have included revenue per user across all sites. digital formats and our interactive Photography Love Patchwork & Quilting and Science Week tops the sector on Apple’s Newsstand. Uncovered, a mainstream science title We saw sustained digital growth across all We also secured the licence to stage The aimed at the 16-25 demographic. key sectors of the portfolio – Technology, Photography Show, set to be Europe’s biggest Games, Photography, Sport, Crafts, Music annual event of its kind, at the Birmingham We have significantly mitigated the impact and Digital Creative. NEC. The Photography Show will debut in of declines in mainstream title sales by March 2014. Our Events division, launched substantially expanding production of high- TechRadar, the news and reviews site which in 2012, also launched successful B2B value specials and bookazines.