Future reports rising revenues; extends Official Xbox deal to 2011

Magazine publisher Future Network Plc has issued a trading statement detailing rising revenues in the first half of this year, and has extended its global deal to publish Official Xbox to 2011 - the longest deal of its type ever to be signed.

In a trading statement which covers actual figures for the first five months of 2004, and estimated figures from June, the company revealed that overall group revenue was up eight per cent, with a seven per cent increase in circulation revenue and a ten per cent rise in advertising revenues.

However, these figures were artificially depressed by the strength of the Sterling pound on the global currency markets, as Future reports its results in Sterling but conducts almost half of its business in the USA and mainland Europe.

Compensating for currency fluctuations, the group actually showed 12 per cent revenue growth in total - with a massive 35 per cent increase in the USA, and a 24 per cent rise in mainland Europe. The UK market, however, showed a two per cent decline, but still accounts for over 50 per cent of Future's revenues.

Most of the growth came from outside the company's core games business, though. Games magazines now account for only 41 per cent of Future's revenue, and accounted for just four per cent growth during the six month period - which actually translates as a decline of one per cent if you factor in the currency differences.

Future also announced that it has extended its deal with Microsoft to publish Official Xbox Magazine through to December 31st, 2011 - with the new deal granting the company the rights to publish the official-branded publication for all Xbox products in all global territories, barring Japan.

"This is the longest and most extensive magazine deal in the computer games industry," enthused Future chief executive Greg Ingham. "Indeed, we believe it may well be one of the most extensive international licensing deals of any sort in the magazine industry. We are delighted and look forward to continuing our successful partnership with Microsoft."

The company has been publishing Official Xbox Magazine since October 2001 in the USA, and since February 2002 in the UK - in each case, launching just ahead of the Xbox hardware launch - and has also launched the title in Germany, and under license in Spain, Australia, Portugal and Taiwan.

It's in the USA that OXM has had the most success, though - it's the largest-selling single-format title ever there, with monthly sales of some 400,000 copies.