Alma Media Oyj : Alma Media's Interim Report for January-March 2013:
International operations offset the weakened result in Finland
Alma Media Corporation Interim Report April
26, 2013 at 9:00am (EEST)
Alma Media's Interim Report for January - March 2013:
INTERNATIONAL OPERATIONS OFFSET THE WEAKENED RESULT IN FINLAND
Financial performance January - March 2013:
oRevenue MEUR 74.9 (81.1), down 7.7%.
oContent revenue MEUR 29.2 (31.1), down 6.3%; advertising revenue MEUR 36.4
(41.1), down 11.3%; service revenue MEUR 9.3 (8.9), up 3.9%.
oEBITDA (Earnings before interests, taxes, depreciation and amortisation)
excluding non-recurring items MEUR 8.0 (11.6), down 31.0%.
oEBITDA MEUR 8.0 (10.7), down 25.8%.
oOperating profit excluding non-recurring items MEUR 5.5 (8.5), 7.3%
(10.4%) of revenue, down 35.5%.
oOperating profit MEUR 5.4 (6.0), 7.2% (7.4%) of revenue, down 9.5%.
oProfit for the period MEUR 4.1 (2.7), up 54.8%.
oEarnings per share EUR 0.05 (0.03).
Key figures 2013 2012 Change 2012
MEUR 1-3 1-3 % 1-12
Revenue 74.9 81.1 -7.7 320.1
Content revenue 29.2 31.1 -6.3 122.3
Advertising revenue 36.4 41.1 -11.3 160.8
Service revenue 9.3 8.9 3.9 37.1
Total expenses excluding non-recurring items 69.6 72.8 -4.4 287.0
EBITDA excluding non-recurring items 8.0 11.6 -31.0 45.1
EBITDA 8.0 10.7 -25.8 39.5
Operating profit excluding non-recurring items 5.5 8.5 -35.5 33.5
% of revenue 7.3 10.4 10.5
Operating profit (loss) 5.4 6.0 -9.5 26.5
% of revenue 7.2 7.4 8.3
Profit for the period 4.1 2.7 49.6 17.4
Earnings per share, EUR (basic) 0.05 0.03 54.8 0.22
Earnings per share, EUR (diluted) 0.05 0.03 55.1 0.22
Outlook for 2013:
The general economic uncertainty in the Group's main markets, as well as the
shift in media consumption from print media to electronic channels, make it
difficult to forecast the development of the content and advertising revenue.
Digital services continue to increase their share of the media market.
European economic growth is expected to remain weak in the first part of 2013.
The growth in the sales of digital services will not be enough to entirely
cover the decline in print media sales. Alma Media maintains unchanged its
estimate given in the financial statements release of February 15, 2013,
according to which the revenue and operating profit excluding non-recurring
items for the first half-year 2013 will decline from the level of the first
half-year 2012. Revenue for the first half-year 2012 was MEUR 162.2 and
operating profit excluding non-recurring items MEUR 16.1.
Kai Telanne, President and CEO:
The weak economic situation in Finland and Europe had a negative effect on the
media industry in the first quarter. At the same time, the structural change
in media consumption and advertising has accelerated, and the shift from
traditional media to digital channels has become faster. Advertising spend in
Finland declined by 13.3% in January - March in comparison with the year
before, and the decline in newspaper advertising was 18.0%. In addition, the
circulations and single-copy sales of print newspapers continued to decline.
This change in the industry and the weak economic cycle also affected Alma
Media's financial development. The company's revenue decreased by 7.7% in the
first quarter of 2013, being MEUR 74.9 (81.1). Operating profit excluding
non-recurring items, MEUR 5.5, declined by 35.5% from the comparison period,
mainly due to the falling profitability of print media. Advertising sales
declined by 11.3%.
In the beginning of the year, Alma Media's financial result was supported by
the acquisitions and operational effectiveness measures undertaken in 2012.
The new operating model of the regional media, sought through the
reorganisation of the publishing operations, has also brought significant cost
savings. The success of companies acquired in other countries and focusing on
recruitment services patched up the weak situation in Finland and increased
Alma Media's revenue from digital business. The share of digital products and
services in the Group's revenue was 28.6% (24.0%) in the first quarter.
Alma Media's strategy is to further increase the share of digital services in
its revenue. During the first quarter, new digital online services were
launched to both consumers and businesses, eg. Yourlapland.com service. New
solutions were also introduced in the publishing business where the fee-based
content in the digital channels and improving the user experience in mobile
media use are in the focus of development activities.
The competitiveness of print media is bolstered through effectivity-increasing
measures. Tightening up the collaboration between editorial offices to improve
reader service is an ongoing process. Collaboration on content and development
with the newspapers of Ilkka-Yhtymä, Kaleva and Turun Sanomat was started in
the first quarter. Alma Media also started the commissioning process of the
new printing facility in Tampere. After a successful start-up, the new
facility will improve production efficiency as well as the quality of print
media, and opens up new opportunities for product development.
In March, Alma Media introduced new cost-saving measures aimed at securing the
company's profitability and competitiveness in an economically challenging
For more information, please contact:
Kai Telanne, President and CEO, telephone +358 10 665 3500
Juha Nuutinen, CFO, telephone +358 10665 3873
Alma Media Corporation follows the disclosure procedure enabled by Standard
5.2b published by the Finnish Financial Supervision Authority. This stock
exchange release is a summary of Alma Media Corporation's Interim Report
January - March 2013. The complete report is attached to this release in pdf
format. The Interim Report is also available on Alma Media's website at
Conference, webcast and conference call
Alma Media will hold a conference for Finnish media, investors and analysts at
11.00-12.00 EEST in the Alma House (address: Alvar Aallon katu 3 C, Helsinki).
In addition to the presentations held by President & CEO Kai Telanne and CFO
Juha Nuutinen, participants will have an opportunity to discuss with other
members of the company's management. Please note that the conference will be
held in Finnish. The presentation material will be available on
at 11.00 EEST.
To participate in the conference, kindly register beforehand to Minna Oksanen,
e-mail firstname.lastname@example.org or tel. +358 10 665 2271.
A conference call and audio webcast concerning the financial result of
January-March 2013 will begin at 15.30 EEST. The conference call and audio
webcast will be held in English. You can participate in the conference by
calling +44(0)20 7784 1036 (confirmation code: 3419047) or follow the direct
transmission at www.almamedia.com/press_room/downloads/presentations/.
ALMA MEDIA CORPORATION
Vice President, Corporate Communications and IR
Distribution: NASDAQ OMX Helsinki, main media
Alma Media in brief
Alma Media is a media company focusing on digital services and publishing. In
addition to news services, the company's products provide useful information
related to lifestyle, career and business development. The services of Alma
Media have expanded from Finland to the Nordic countries, the Baltics and
Central Europe. The company employs approximately 1,900 professionals (without
distributors), of which over 20% work outside Finland. Alma Media's revenue in
2012 totalled approximately MEUR 320. Alma Media's share is listed in the
NASDAQ OMX Helsinki. Read more at www.almamedia.com.
Q1 2013 Alma Media's Interim Report
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: Alma Media Oyj via Thomson Reuters ONE
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