UK magazine and online media group Future Network saw its stock plummet 47% yesterday following a substantially reduced earnings forecast for the year to December.

The company, which Elisabeth Murdoch (daughter of the more famous Rupert) recently joined as director, predicted full-year revenues of £260 million, with an underlying profit without investment of around £40m, some £6m below recent forecasts.

Future Network, which specialises in technology magazines such as Business 2.0, attributed the shortfall to a cutback in dotcom adspend, supply shortages of Sony’s Playstation 2 for which it publishes magazines, and the estimated £300,000 cost of an audit investigating financial irregularities in its French unit.

The group said it planned to broaden its advertising base following the decline in dotcom spend and cut its investment plans by 10%.

News source: Financial Times