Future's £2m US hit to hurt profits

The magazine publisher Future has given a warning on profits for the second time this year after revealing it expects a £2m hit from worsening US sales.

The group, best known for titles such as gadget magazines: T3, Total Film and Guitar World, has seen US retail revenues fall more than expected as book stores close, reducing consumers' opportunities to buy its magazines.

As a result, it said underlying losses at its US business will be £2m worse than it had expected. Its shares slumped 23 per cent to 13.25p after the profits warning.

Earlier this year, it announced a £2m profits hit as its sales fell by between 2 and 3 per cent in the six months to 31 March.

The group said that it will now speed up the transition of its US business into a primarily digital business, but said this will take 12 to 15 months as it honours subscriptions and contracts.

Its business in the UK performed in line with forecasts in the nine months to 30 June as revenues "held up well", with a rise in digital sales continuing to offset declines in print media. May saw it take more than £1m of digital revenues in a month for the first time.