Future Publishing Issues Profit Warning
Buy-out on the cards for games magazine uber-publisher?
The Guardian's City and Media desk reported last Friday and over the weekend that beleaguered games magazine publisher, Future Publishing, is becoming increasingly vulnerable to a buy-out bid after shares in the company fell by an alarming one-fifth at close of business last week.
Future, which basically owns the consumer games magazine market in the UK, saw its shares slide by 15% on Friday to 42p after issuing a warning that 2006 profits would be 20% - or £5,000,000 - below expectations.
Future, which publishes Official Xbox and Xbox 360 Magazines, Official PlayStation 2 Magazine and Official Nintendo Magazine along with hundreds of other ‘unofficial’ gaming and consumer titles, blamed poor sales of its car, games and women's interest titles in particular for the loss in sales.
"Recent market conditions have been more challenging and are holding back prospects for the current financial year to September 2006", Future said in a statement to the City.
Analysts said the considerable fall in the company’s magazine fortunes was due to the combined effects of the consumer spending downturn and the migration of readers to the internet.
This was Future's fourth profit warning in 15 months and it is also being suggested by analysts that the company is becoming increasingly vulnerable to a private equity takeover.
SPOnG spoke to a Future spokesperson earlier this afternoon, who told us in no uncertain terms that the company 'refuses to comment on speculation and rumour'. According to The Guardian's reports, the company plans to cut paper, printing and promotional costs.
SPOnG also wonders if this means it's the end of the dream for lavish 'file under misc.' expense claims from Future's editors and editorial staff. This can only mean one thing. Publisher's better increase their PR expense budgets over the coming year if they wish to keep 'The Future boys' in the lifestyle to which many of them have become accustomed.
A long-term Future contributor who wished to remain nameless told SPOnG today: “Not that I'm one to piss on my own chips, but the era of magazines ruling the roost in the UK is over really. It's all about the Internet, especially in the games and IT publishing sectors.”
Future, which basically owns the consumer games magazine market in the UK, saw its shares slide by 15% on Friday to 42p after issuing a warning that 2006 profits would be 20% - or £5,000,000 - below expectations.
Future, which publishes Official Xbox and Xbox 360 Magazines, Official PlayStation 2 Magazine and Official Nintendo Magazine along with hundreds of other ‘unofficial’ gaming and consumer titles, blamed poor sales of its car, games and women's interest titles in particular for the loss in sales.
"Recent market conditions have been more challenging and are holding back prospects for the current financial year to September 2006", Future said in a statement to the City.
Analysts said the considerable fall in the company’s magazine fortunes was due to the combined effects of the consumer spending downturn and the migration of readers to the internet.
This was Future's fourth profit warning in 15 months and it is also being suggested by analysts that the company is becoming increasingly vulnerable to a private equity takeover.
SPOnG spoke to a Future spokesperson earlier this afternoon, who told us in no uncertain terms that the company 'refuses to comment on speculation and rumour'. According to The Guardian's reports, the company plans to cut paper, printing and promotional costs.
SPOnG also wonders if this means it's the end of the dream for lavish 'file under misc.' expense claims from Future's editors and editorial staff. This can only mean one thing. Publisher's better increase their PR expense budgets over the coming year if they wish to keep 'The Future boys' in the lifestyle to which many of them have become accustomed.
A long-term Future contributor who wished to remain nameless told SPOnG today: “Not that I'm one to piss on my own chips, but the era of magazines ruling the roost in the UK is over really. It's all about the Internet, especially in the games and IT publishing sectors.”
Companies:
Future Publishing
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Comments
thane_jaw 13 Mar 2006 19:39
1/9
Amiga Power anticipated this.
Can't wait for them to abandon proper binding and move to staples. I'll be pissed off if they get rid of PC Gamer's DVD though, saves me hours on the net.
What does media with passion mean anyway.
Can't wait for them to abandon proper binding and move to staples. I'll be pissed off if they get rid of PC Gamer's DVD though, saves me hours on the net.
What does media with passion mean anyway.
schnide 13 Mar 2006 22:02
2/9
Dear Future,
THE UK GAMING MAGAZINE MARKET IS DEAD BECAUSE YOU SMOTHERED IT IN S**T.
Many thanks,
The UK
THE UK GAMING MAGAZINE MARKET IS DEAD BECAUSE YOU SMOTHERED IT IN S**T.
Many thanks,
The UK
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ohms 13 Mar 2006 23:57
3/9
The market was saturated with computing and gaming mags anyway, and now many competing mags are owned by the same company... huh?
I think really long term, there isnt much future in magazines, particularly console and computer mags, so shedding some of their titles may be inevitable. A stronger online presense to complement the mags content could help, and rethinking and changing marketing strategy could also. For instance, having PC Gamer as the mainstream PC gaming mag, more expensive with all the covermount DVDs and sell PC ZONE as the more grown up, smarter, edgier PC gaming mag (which is always was in the mid 90s), no covermounts, lower price, different market.
Maybe they have done something like this already tho, I wouldnt know, havnt had the need to pick up a gaming mag for ages (apart from EDGE, which aint so good anymore anyway).
I think really long term, there isnt much future in magazines, particularly console and computer mags, so shedding some of their titles may be inevitable. A stronger online presense to complement the mags content could help, and rethinking and changing marketing strategy could also. For instance, having PC Gamer as the mainstream PC gaming mag, more expensive with all the covermount DVDs and sell PC ZONE as the more grown up, smarter, edgier PC gaming mag (which is always was in the mid 90s), no covermounts, lower price, different market.
Maybe they have done something like this already tho, I wouldnt know, havnt had the need to pick up a gaming mag for ages (apart from EDGE, which aint so good anymore anyway).
Puck 14 Mar 2006 11:23
4/9
I like Edge. Its suitably condescending and (sometimes) prints swear words to look cool.
thane_jaw 14 Mar 2006 11:44
5/9
Well most of the historic differences between mags has been completely scoobied by instant news on the internet. , removing entirely the whole "exclusive" this and that, which magazines used to use to drum up sales.
I believe that magazines can only survive if they start to grow up and market themselves to an older audience. PC gamer has kinda shown the way, with more interviews, community news and general essays on the state of the business. (Having said that, they're still using crappy mocked up porn shots from garrys mod to fill their readers screenshots, which pisses me off because if you've seen one, you've seen them all. They've got no redeeming features.) I'd be more interested in buying a more industry/ development led magazine - focusing more on the games and the issues current for the next month. (PC gamer have kinda started something like this, they did a hilarious true stories from the nightmare that is a development studio and they've been doing properly researched articles on girls in gaming and fear in games. )
I'd suggest dropping the heavy emphasis on reviews in magazines, they'd still be there but possibly doing extended reviews for magazine subscribers on the net, and becoming more of an opinion magazine (though I could do with less of Dominic Diamond - my nostalga for games master has been shot to pieces) with greater emphasis on the quirky, oddball and getting more exclusive in depth previews (looooong ones) and interviews could draw people away from the net. Discussions would be good (PC zone do a roundtable discussion wma and put it on the dvd each month. v.good.).
Anyway, not very well thought out but hey.
I believe that magazines can only survive if they start to grow up and market themselves to an older audience. PC gamer has kinda shown the way, with more interviews, community news and general essays on the state of the business. (Having said that, they're still using crappy mocked up porn shots from garrys mod to fill their readers screenshots, which pisses me off because if you've seen one, you've seen them all. They've got no redeeming features.) I'd be more interested in buying a more industry/ development led magazine - focusing more on the games and the issues current for the next month. (PC gamer have kinda started something like this, they did a hilarious true stories from the nightmare that is a development studio and they've been doing properly researched articles on girls in gaming and fear in games. )
I'd suggest dropping the heavy emphasis on reviews in magazines, they'd still be there but possibly doing extended reviews for magazine subscribers on the net, and becoming more of an opinion magazine (though I could do with less of Dominic Diamond - my nostalga for games master has been shot to pieces) with greater emphasis on the quirky, oddball and getting more exclusive in depth previews (looooong ones) and interviews could draw people away from the net. Discussions would be good (PC zone do a roundtable discussion wma and put it on the dvd each month. v.good.).
Anyway, not very well thought out but hey.
ann0uk 14 Mar 2006 12:08
6/9
The internet is killing game mags, EDGE is the only one I would bother with now.
Ditto 14 Mar 2006 22:32
7/9
I haven't touched one for 2 years, so I can't comment.
But I can tell you that every Future magazine I've read has been far too expensive and has gone into a downward spirl over the period I was reading it.
But I can tell you that every Future magazine I've read has been far too expensive and has gone into a downward spirl over the period I was reading it.
DoctorDee 15 Mar 2006 16:10
8/9
Gaming mags are cute. A convenient little reminder of things we learned on the Net two months ago.
LUPOS 15 Mar 2006 16:27
9/9
DoctorDee wrote:
Gaming mags are cute. A convenient little reminder of things we learned on the Net two months ago.
sept for the pesky little ocasional "exclusives" they always seem to get... even the lovely demo disks on the officials (bastions of crap that they are) are becomeing less and less worth while now that the 360 has the downloadbale demos.