AGM Trading Update

RNS Number:7965H
Future Network PLC
26 January 2005



26 January 2005

                             THE FUTURE NETWORK PLC

                         AGM Statement: Trading Update

At today's Annual General Meeting of The Future Network plc, the international
special-interest consumer magazine group, Chairman Roger Parry will give the
following update to shareholders.

This trading update provides an overview of Future's revenues and general
trading for the three months ended 31 December 2004 ('the first quarter'). All
revenue growth figures are given year-on-year and in constant currency.

Trading for October to December has been satisfactory with profits modestly
ahead of the Board's expectation for this important quarter.

Total Group revenue was up 3%, reflecting strong growth in the Group's
entertainment titles (up 17%), offset by declines in games and computing
revenues (both divisions down 1%).

Like-for-like Group revenue (excluding acquisitions made during the 12 months to
30 September 2004) declined by 1%, mostly attributable to the previously
indicated weakness in US games advertising in the period, compounded by a weaker
Dollar. The Board continues to be confident of a satisfactory performance from
the Group's games portfolio for the financial year 2005 as a whole.

At the operating level, first quarter profitability (in terms of adjusted
operating profit as a percentage of turnover) was modestly ahead of that for the
first quarter last year.
Last year such profits represented approximately 44% of the total for the twelve
months ended 30 September 2004. The Board expects that this strong seasonal
quarter will account for a similarly significant portion of profitability for
the current financial year to 30 September 2005.

Circulation revenue (which accounts for some 68% of Group revenues) grew by 7%
and advertising revenue (30% of Group revenues) fell 4%.

Revenue performance for the first quarter (October to December) can be analysed
as follows:

Territory                       Growth           Growth            
                             (sterling)  (constant currency)    Proportion of Group

UK                                 -                  -                     51%
US                              + 1%              + 10%                     28%
Mainland Europe                 + 1%               + 1%                     21%
Total Group                        -               + 3%                    100%

Sector                          Growth           Growth            
                             (sterling)  (constant currency)    Proportion of Group
                                                
Games                           - 4%               - 1%                     47%
Computing                       -3 %               - 1%                     28%
Entertainment                  + 15%              + 17%                     25%
Total Group                        -               + 3%                    100%

The average value of the Dollar against Sterling declined by 9% compared with
the first quarter last year, so that revenue growth in Dollar terms was much
stronger than that reported in sterling. The average value of the Euro against
Sterling in the period weakened by less than 1%.

UK business

In the UK for the December quarter, both revenues and profits were at or above
budgeted levels. Future UK turnover remained steady, with adjusted operating
profits modestly above the same period in the previous year. The results for the
quarter do not include the impact of the acquisition of three titles at the end
of 2004, namely Junior, Junior Pregnancy & Baby and Wedding Day. These titles,
together with the 11 motoring enthusiast titles acquired this week from A&S
Publishing, will contribute to the financial year to 30 September 2005 and
following a period of integration, are expected to have a more significant
positive impact on the financial year to 30 September 2006.

US business

Future US turnover rose by 10% and operating profitability is slightly ahead of
the same quarter last year. Our US business has continued its planning for
developing into the Action Sports area. In January 2005, Future US acquired
Snowboard Journal, which is an early-stage magazine serving this
special-interest area, at a cash cost of #0.2m. This acquisition will help our
launch of Future Snowboard in the late summer of 2005.

Mainland Europe

Turnover in Mainland Europe grew by 1% reflecting stable performance in France
but a tough competitive market in Italy. However, operating profitability for
Mainland Europe overall was comfortably above its level for the first quarter
last year.

Outlook

Operating profitability for the important December quarter has modestly exceeded
the prior year and the Board's expectation, providing a good start to the
current financial year.

The Board expects to report the Group's results for the half-year to 31 March on
14 June 2005.
Enquiries:

The Future Network plc
Greg Ingham, Chief Executive                       Tel: [phone]
John Bowman, Finance Director                      Tel: [phone]

Hogarth Partnership
James Longfield/Georgina Briscoe                   Tel: [phone]






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