Future, the publisher of a portfolio of websites and magazines including T3, Total Film and TechRadar, has slashed its losses to just £2.3m in the year to the end of September.
The company, which has shed 460 staff in the last two years in a bid to reverse losses of £35m, has also raised £3.3m through a share placing to invest in e-commerce, events and digital advertising.
The publisher, whose US operation in May reported its first profit in seven years, saw total revenues fall 9.3% from £66m to £59.8m, driven by the continued decline in print revenues.
Total print revenue fell by 18% to £31.7m in the year to the end of September. Total UK revenue fell from £53.1m to £47.3m, with digital advertising accounting for 71% of income. In the US, revenues fell from £13.7m to £13.4m, as circulation revenues fell by 16% and ad revenues rose 18%.
The company said that “digital and diversified revenues” – areas such as e-commerce and events – now accounts for 47% of total revenues.
“We have completed a substantial transformation of the business over the last 18 months, with 2015 being a year of building momentum,” said Zillah Byng-Thorne, chief executive of Future. “All territories are now profitable and we are seeing the acceleration of our growing digital and diversified revenue streams.”
Future’s earnings before interest, tax, depreciation, amortisation and exceptional items was £3.6m.
Future said it was splitting its operation into two separately managed divisions: media and magazine. The media division will focus on global digital brands “particularly within the high-growth technology and games markets”, such as GamerRadar+, PC Gamer, techradar and The Photography Show. It will be the beneficiary of investment from the £3.3m placing.
The magazine division will house 10 key titles, including T3, Total Film, Guitarist and Mac Life, and 150 publications in total, and is tasked with implementing “tight management of the decline in revenue”.
Future’s staff numbers fell almost 10% from 577 to 520 during the year. The company said it hired 158 staff during the year.
“Future re-invested in headcount in areas where it is most required and a third of all new hires are focused on the key areas of product and technology and commercial,” the company said.
