Future plc issues profit warning, hints of more cost cutting coming
The magazine publisher Future plc today issued a profit warning in the way of a trading update. The company warned investors that income for the quarter will come in below market forecasts for the year based on the current trends.
“Following our update to the market on 3 February, the downturn in trading we saw in the latter part of the first quarter has continued in January and February,” the update states. “This has led the Board to conclude that the EBITDAE out-turn for the full year is anticipated to be below normalised FY13 and therefore significantly below market forecasts for FY14.”
“Our core sectors have remained strong and this has led the Board to decide to increase our focus on core areas – above all the Technology, Sports and Photography verticals – where we have established market-leading positions.”
The update also states that the publisher will continue with its cost reduction program through the rest of the year, meaning either further layoffs, or possible new divesting of non-core products. Future has 127 apps for the iPad inside Apple’s App Store, of which 72 are Newsstand apps.
Future plc stock is trading down slight at 13.00 GBp per share.