Future Network, the publisher of PlayStation2 and Total Film magazines, has posted a loss of £106m after radically restructuring the business.

The beleaguered company said the revamp had cost £22m and it had written down the value of its US operations by £49m, leading to the record losses.

Since the beginning of the year, Future has closed or sold 39 magazines and fired 810 staff, leaving it with 1,200 employees.

The most high profile casualty was Business 2.0, sold to AOL Time Warner for £26m in June.

Executives admitted that the company had overstretched itself last year, leaving it with a portfolio of underperforming titles in a highly competitive market.

Future said in today's interim results that revenues had fallen from £110m last year to £90m, due to a combination of poor sales and a slowdown in advertising income.

The prolonged stagnation of the computer games market, which is being held back by the slow roll-out of new computer games consoles such as PlayStation2, has kept Future in the financial doldrums.

Greg Ingham, the chief executive of the group, said there was no end in sight to the slump in advertising and circulation figures.

"Trading conditions are challenging and are expected to remain so for at least the remainder of this year," said Mr Ingham.

"Though we believe that we have made cautious assumptions about the second half of this year, current market conditions, both generally and resulting from the video games transition, make it difficult to forecast revenues," he said.

Earlier today, Future suspended its shares and held back the publication of its results pending an announcement on the company's finances.

Future has ruled out a possible sale of the company following abortive takeover talks last month, but it needs new backing to pay down a debt burden of £70m.