News blog
Electric Word
- BY: Andrew Hore |
- POSTED: 19/02/2010 |
Electric Word has made good progress in a tough period for publishing.
The underlying profit rose 8% to £1.9m in the year to November 2009. Revenues fell 5% to £16.5m but that was mainly down to the restructuring of MyChild and the closure of the magazine.
Subscription revenues have held up well, while events and advertising revenues increased. Even so, advertising is only 18% of total revenues. Investment in new educational titles will help book revenues to recover this year.
The revenues of the professional education division were flat and sports business revenues grew 11%. Online gaming remains a growth sector. The revenues of the consumer division were lower because of the MyChild changes but it made a bigger profit contribution. Group central costs were flat.
Electric Word raised £2.7m gross at 3.625p a share last summer, which helped to finance the early redemption of preference shares costing £984,000. Net debt was £1.4m at the end of November 2009.
The share issue will dilute earnings this year. At 4.75p a share, Electric Word is valued at £10.9m. The shares are trading on less than six times prospective 2009-10 earnings.
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