For the financial year ended 31 December 2000, Future Verlag generated losses of DM 20.5m (£6.4m) on revenues of DM 22.5m (£7m). Future Verlag is expected to make losses of DM 9.4m (£2.9m) for the current financial year, prior to closure, on revenues for the period around DM 7.7m (£2.5m). In addition the closure of Future Verlag after disposal of certain assets is expected to result in a one-off net charge of DM 2.5m (£0.8m) in the current financial year.
IDG has agreed to fulfil Future’s existing subscription obligations for PC Player, Future Verlag’s principal PC games magazine, by providing its own title Gamestar to the subscribers of PC Player.
Future Network also announces that it plans to close the German, Italian and UK editions of its business magazine Business 2.0. The downturn in the advertising market in the business sector has adversely impacted Business 2.0 in Europe. Costs of closing the UK and Italian editions of Business 2.0 are estimated to be about £1m.
As announced on 16 February 2001, Future Network has retained Morgan Stanley Dean Witter to explore options for the next stage of development of the US edition of Business 2.0, including possible sale or joint venture. This review is continuing but it is now clear that, whatever the outcome of the review, the European editions will need to be closed.
The US edition of Business 2.0 is not affected by the closure of the European editions.
Commenting on the closures, Greg Ingham, Future Network’s Chief Executive, said:
We naturally regret having to make these closures. But they reflect our continuing determination to
re-focus the business around core, profitable, business areas in those markets where we enjoy a leading position. During the tough market conditions being experienced, we intend to reduce risk in the business by concentrating on those profitable business areas.
