Future Publishing has reported a £35m loss, as the embattled publisher revealed it has cut more than 400 staff, over 40% of total employees, to cut costs and refocus the business.
Future, publisher of a portfolio of websites and magazines including T3, Gizmodo and Total Film, reported a £35.4m pre-tax loss in the year to the end of September.
The company has undergone a major restructuring since the arrival of new chief executive Zillah Byng-Maddick, the former finance chief at AutoTrader’s parent company, including reducing headcount from 980 to 577.
The company reported a 20% decline in revenues, from £82.6m to £66m, as print sales and advertising continued to decline steeply.
“We have now largely completed the transformation programme,” said Byng-Maddick. “Our property portfolio has been rationalised, non-core businesses sold, our balance sheet strengthened and the cost-base materially reduced.”
Print revenues declined by 26% from £52.2m to £38.7m, while digital and diversified revenues fell slightly from £30.4m to £27.3m.
The company said that digital advertising at its UK operation represents 63% of total UK ad revenue.
Future said that it raised £23.8m from the sale of its sport and craft titles - which include Procycling, What Mountain Bike and The Knitter – to Radio Times and Top Gear publisher Immediate Media. It also sold its auto titles and Triathlon Plus to Kent-based Kelsey Publishing for £2.3m.
Part of the headcount reduction – about 160 people – is made up of staff moving with magazines that were sold.
Future said it was entering 2015 with a “leaner, simpler business with a strategy that focuses on core competencies of content” concentrating on five areas: technology, games and film, music, photography and creative.
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