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Future bucks trend as online advertising sales rise
Future’s revenues grew by 1%, saved almost entirely by the increase in web advertising as print advertising fell by 4% and circulation revenues fell 2%.
Games is Future’s biggest sector (32% of FY08 revenues) and it had a challenging quarter “driven by an accelerated decline in PC gaming and the very tough US advertising environment.” The other three sectors (Technology, Music & Movies and Active) were described as “resilient”.
I expect Future to take a knife to its games print activities this quarter. PC Zone and PC Gamer are likely candidates to be merged. The rapid migration to online content and advertising will be fastest in games, and Future will need to act to get ahead of the falling curve.