INFORMATION ON AAMULEHTI GROUPS RESULT FOR 1 Jan.- 31 Dec.1997
AAMULEHTI GROUP STOCK EXCHANGE RELEASE 1/18 MTV GROUP 13.02.1998, at 12.00 p.m. local time INFORMATION ON AAMULEHTI GROUPS RESULT FOR 1 Jan.- 31 Dec.1997 The profit before taxes and minority interests rose 27 % to FIM 202 (159) million. Net sales increased 2 % to FIM 1,652 (1,623) million. The solvency ratio was 45 % (45 %). Alma Medias net sales are expected to exceed the net sales of the mergering companies last year. Further growth is forecast in the media markets but competition is also expected to put pressure on costs. For the Finnish media 1997 marked a historical year. The annual shareholders meetings of Aamulehti Corporation and MTV Oy decided to merge the two companies to form a new mass communications group called Alma Media Corporation. In October Aamulehti Corporation acquired 18.4 % and MTV Oy 5.0 % of Swedens only national commercial television channel, TV4 AB. Alma Media will be TV4 ABs largest owner. Other highlights in Finland during the year included the start-up of Finlands first national commercial radio channel and a second national commercial television channel, and the launches of a second national business daily and several free-distribution newspapers. In February 1997 Aamulehti Corporation sold the shares of Suomen Aldata Oy to a new company, Alcap Oy, in which it holds 28 %. This left the Aamulehti Group to concentrate solely on mass communications. Business environment The Finnish economy recovered better than expected. According to a forecast by Merita Bank the economy grew 4.2 % (2.5 %). Despite this, however, interest rates and inflation remained low. The average rate of unemployment in Finland fell to 14.5 % (15.8 %), according to Statistics Finland. The buoyant economy also fuelled media advertising, which increased rapidly. According to preliminary information released by Gallup Advertising Information, the volume of media advertising rose 9.1 % to FIM 5.1 billion compared to the previous year. Magazine and television advertising showed particularly strong growth. Newspaper advertising revenues rose 5.4 %. The circulations of Finlands daily newspapers declined by 0.3 % (-1.8 %) on average but many newspapers in the southern and central regions of the country actually raised their circulations. Growth was vigorous in the afternoon newspaper markets. A fall in paper prices reduced printing costs. Demand for graphic products in Finland rose slightly but seasonal variations were large, as in the year before. Paper prices were 10 % lower on average than in 1996, which meant that sales rose more slowly than volume in the industry. Exports of printed products to Russia increased once again. Profitability in the industry was slightly weaker than one year earlier. The figures for the divisions presented in this financial statement bulletin are based on the Groups operative organization. Net sales and result The Groups net sales totalled FIM 1,652 (1,623) million. Net sales in 1996 included the net sales of the Aldata division (FIM 114 million) sold in February 1997. Net sales in 1997 does not include the Aldata sales. The business operations of Satakunnan Kirjateollisuus Oy were consolidated in the Groups full-year accounts for the first time. In addition the net sales of Aamulehti and Iltalehti showed particularly strong growth. Exports accounted for FIM 360 (347) million of consolidated net sales and consisted mainly of exports of Alprints printed products. Altogether 55 % (54 %) went to Russia, 36 % (40 %) to Scandinavia, and 9 % (6 %) to other countries, mainly Great Britain. The annual shareholders meeting in 1990 decided that an appropriation should be made from the Groups profits to a personnel fund if the Groups result of operations exceeds 7 % of its net sales. The results of both the subsidiaries and the Group affect the amount to be transferred to the personnel fund. An appropriation was made to this fund for the first time in 1997. The FIM 10 million transferred was entered in the accounts under personnel expenses. The operating profit before depreciation was FIM 320 (313) million, which included FIM 12 (2) million contributed by associated companies. In 1996 the operating profit included a one- time profit of FIM 45 million on the sale of real estate. Other operating income came to FIM 6 (53) million. The improvement in operating profit before depreciation in 1997 was due to higher profits posted by the Aamulehti, Satakunnan Kansa and Iltalehti newspapers. Depreciation totalled FIM 142 (133) million, including goodwill depreciations of FIM 13 (11) million. The operating profit (after depreciation) was FIM 178 (180) million. Net financial expenses came to FIM 15 (25) million. This decrease was due to lower interest rates, conversion of the convertible bond into shares, and the fact that before the payment of the TV4 shares in December 1997 interest-bearing debt was lower than during the previous year. Financial expenses were 0.9 % (1.6 %) of net sales. The Groups profit before extraordinary items, taxes and minority interest was FIM 163 (155) million. Extraordinary income totalled FIM 53 (7) million and extraordinary expenses FIM 14 (3) million. Extraordinary income included a profit of FIM 37 million from the sale of the Suomen Aldata Oy shares. Extraordinary expenses included FIM 13 million in costs incurred by the merger of the Aamulehti and MTV groups. The profit before taxes and minority interest was FIM 202 (159) million. Direct taxes came to FIM 36 (47) million. After the closing of the 1997 annual accounts the Group had unused confirmed losses from previous financial years totalling slightly less than FIM 10 million. Earnings per share were FIM 13.92 (12.74). Capital expenditure Capital expenditure totalled FIM 510 (338) million. FIM 420 million of this went in acquiring the TV4 AB shares, FIM 13 million in the Pohjolan Sanomat shares, and the remaining FIM 77 million in normal maintenance investments. The Aamulehti Group owns 18.4 % of the shares of TV4 AB and 44 % of the shares of Pohjolan Sanomat Oy. Financing The Group had FIM 96 (104) million in cash reserves and bank balances at the year end. Interest-bearing debt came to FIM 736 (453) million at the end of the period. The counter-value of debt denominated in foreign currency was FIM 227 million. Foreign currency loans are mainly hedged against foreign exchange risks. The increase in interest-bearing debt arose from financing of the acquisition of the TV4 AB shares. The interest-bearing loans carried average interest of 4.0 % (4.8 %). Net gearing was 76 % (52 %). Shareholders equity and solvency ratio The balance sheet totalled FIM 1,940 (1,603) million. Shareholders equity in the balance sheet amounted to FIM 840 (674) million. The accumulated depreciation difference and voluntary provisions came to FIM 129 (103) million. This included FIM 93 (74) million entered under shareholders equity and FIM 36 (29) million as the computed deferred tax liability. Minority interests totalled FIM 20 (21) million. The solvency ratio at the year end was 45 % (45 %). Shareholders equity per share was FIM 87.41 (89.91). Shares and ownership structure An aggregate increase of FIM 21 million in the share capital was recorded in the Trade Register during the year, consisting of shares converted in exchange for bonds floated in 1993. Contrary to the bonds original conditions, the conversion period of the bond expired on 31 August 1997 as stipulated in the merger agreement approved by a shareholders meeting on 18 June 1997. Of the original FIM 129 million loan principal, bonds totalling a nominal FIM 855,000 remained unconverted on the conversion expiry date. The Board of Directors of Aamulehti Corporation had no authorizations to raise the share capital during the year. The registered share capital of Aamulehti Corporation at the year end was FIM 96 (75) million, consisting of FIM 42 million in Series I shares and FIM 54 million in Series II shares. Nominee-registered and Non-Finnish shareholders held 52 % (42 %) of the Groups shares at the year end. Personnel The Group had 2,152 (2,268) full-time employees at the year end, and an additional 941 (999) part-time newspaper deliverers. Personnel averaged 3,107 (3,029) during the year. Administration The following were due for retirement from the Supervisory Board at the Annual General Meeting in 1997: Tapio Aaltio, Pauli Komi, Pentti Kivinen, Matti Peltonen and Jukka Rantala, as well as employee representative Asko Haapaniemi. Tapio Aaltio, Pentti Kivinen, Jukka Rantala and employee representative Asko Haapaniemi were re-elected. The following were elected as new members: Antti Tanskanen, Jukka Koivisto and Reino Taubert. Toivo Nordberg and Hannu Jaakkola were elected to the Supervisory Board in place of Tauno Matomäki and Matti Järventie, who resigned from the Supervisory Board after being invited to join the Board of Directors. The AGM elected authorized public accountants KPMG Wideri Oy Ab and Mauri Palvi APA as the Companys auditors. Matti Sulander APA, Eija Kauppi-Hakkarainen APA and Seppo Suuripää APA were appointed deputy auditors. The Supervisory Board elected Arjo Anttila as its Chairman and Asmo Kalpala as its Deputy Chairman. As part of the merger process the entire Board of Directors of Aamulehti Corporation - that is Pirkko Alitalo, deputy chairman Bengt Braun, Matti Häkkinen, Matti Järventie, chairman Tauno Matomäki, Yrjö Niskanen and Erkki Solja - resigned their positions. The Supervisory Board elected the following as members of the Board of Directors of Aamulehti Corporation with effect from 28 August 1997: Pekka Ala-Pietilä, Pirkko Alitalo, Bengt Braun, Matti Häkkinen, Pentti Kivinen, Björn Mattsson and Olli Reenpää. This also constitutes the first Board of Directors of Alma Media Corporation, due to start operation on 1 April 1998, as set out in the merger agreement. The new Board of Directors elected Björn Mattsson as its chairman and Bengt Braun as its deputy chairman. Pentti Kivinen submitted his resignation to the Supervisory Board with effect from 28 August 1997 having been elected to the Board of Directors of Aamulehti Corporation. President and Chief Executive Officer of Aamulehti Corporation throughout the year was Matti Packalén. Alpress Alpress publishes Aamulehti, Iltalehti, Kauppalehti, Lapin Kansa, Satakunnan Kansa, 12 local newspapers and three free-distribution papers. During the year Alpress Oy acquired a 44 % holding in Pohjolan Sanomat Oy. Alpress had net sales of FIM 1,014 (902) million. Roughly half of the increase was due to the addition of the Satakunnan Kirjateollisuus Oy newspapers for the full year. Circulation revenue contributed 48 % (47 %) and advertising revenue 50 % (50 %) to net sales. Circulations of newspapers published 4-7 times a week in Finland fell by 0.3 % on average. Iltalehtis 6 % rise, by contrast, represented the highest growth of any Finnish newspaper. Aamulehtis circulation increased 1.4 % and Kauppalehtis circulation 0.3 %. Satakunnan Kansas circulation fell 0.3 % and Lapin Kansas 2.5 %. Alpresss circulation revenues were 10 % higher than one year earlier. Alpresss advertising revenue rose 14 % on the previous year. According to preliminary information supplied by Gallup Advertising Information, newspaper advertising revenues increased by altogether 5.4 % in Finland. Eliminating the effect of the Satakunnan Kirjateollisuus Oy newspapers from the circulation and advertising sales, the comparative increase in circulation sales was 5.3 % and in advertising sales was 8.7 %. Alpress posted an operating profit of FIM 130 (78) million. Aamulehti, Iltalehti and Satakunnan Kansa showed a particularly sharp rise in profitability compared to the previous year. Alpresss operating profit was 13 % (9 %) of its net sales. Alprint Alprint is the graphic services division of the Aamulehti Group. Alprints operations are divided into two companies: Alprint Magazine Printing Group Ltd and Alprint Newspaper Printing Group Ltd. At the end of the year Alprint had 12 printing plants around the country. Alprint Newspaper Printing Group Ltd sold the Oulainen newspaper printing works to its operative management at the end of the year. Alprints net sales totalled FIM 888 (848) million. The Pori units are included in the Alprint figures for the first time for the full year. Paper prices were 10 % lower on average than during the previous year. Likewise, the average price level of products in this sector was also lower than during the previous year. Newspaper products contributed FIM 443 (437) million and magazine products FIM 440 (387) million to net sales. Exports amounted to FIM 358 (343) million, the Aamulehti Group newspapers accounted for FIM 270 (267) million and other domestic customers for FIM 260 (238) million. Price levels in Finland remained stable in both magazine and newspaper sectors. Demand continued to be strong in Russia in both sectors but prices were marginally lower than during the previous year. Competition in Sweden became fiercer but the strengthening of the pound favoured Finnish printers in both the British and Norwegian markets. Alprint posted an operating profit of FIM 88 (94) million, which was 10 % (11 %) of its net sales. Alexpress Oy Alexpress handles the Aamulehti Groups local radio broadcasting activities. It is also responsible for the technology and systems used to distribute the electronic editions of the Groups newspapers and most of the Groups R&D investments in new media are handled by Alexpress as well. The Aamulehti Group devotes annually some FIM 16 million to research and development. The local radio broadcasting business generated net sales of FIM 11 million. Alexpress recorded an operating loss of FIM 15 (-13) million due to the R&D emphasis of its operations. Alpress Oys figures also include the share of Oy Suomen Uutisradio Abs loss (FIM 4 million). Principal associated companies The most important associated company is MTV Corporation, in which the Aamulehti Group has a 20 % holding. The MTV Groups net sales rose 11 % on the previous year to FIM 1,079 (975) million, due principally to an increase in advertising revenues. MTV Group paid altogether FIM 395 (397) in public services charges to the Finnish Broadcasting Company. Its other annual operating expenses increased 15 % to FIM 577 million due to a 20 % increase in broadcasting time and higher investments in programmes. The operating profit was FIM 96 (64) million. MTV Group contributed FIM 9 million to the Aamulehti Groups result. Aamulehti Group owns 20 % of Oy Suomen Uutisradio Ab (Finland News Radio), which started up the Radio Nova national commercial radio channel in May 1997. Radio Novas net sales for its first operating year exceeded FIM 13 million. Aamulehti Group and MTV Oy have been responsible for Radio Novas financing. Awareness of the new channel and its audience figures made excellent progress. According to the plan Radio Novas operative result is expected to be positive on its third fiscal year. Aamulehti Group owns 44 % of the shares of Pohjolan Sanomat Oy. In 1996 this company had net sales of FIM 68 million and an operating loss of FIM 2 million. Pohjolan Sanomat Oy will publish its 1997 results on 23 February 1998. The company had no material impact on the Aamulehti Groups result in 1997. At the end of the period the Aamulehti Group owned 28 % of the shares of Suomen Alcap Oy. Alcap Oy, the parent company, owns Suomen Aldata Oy and its subsidiaries Data Check Oy, Modern Soft Oy and Tietovoima Oy. The Alcap group had net sales of FIM 152 million and an operating loss of FIM 5 million. The Aamulehti Groups share of the Alcap groups result is shown under financial items. In addition to MTV Corporation, Oy Suomen Uutisradio Ab and Pohjolan Sanomat Oy, the other associated companies which had an impact on the Groups operating profit before depreciation were the Finnish News Agency (27 %) and Tampereen Tietoverkko Oy (35 %). The parent company Aamulehti Corporation is the parent company of the Group. In addition to managing the businesses of its subsidiaries it also owns real estate, trades in securities and engages in other investment activities. The parent company is centrally responsible for the Groups financial control and treasury functions. The parent companys net sales in 1997 were FIM 62 (66) million and it recorded an operating loss of FIM 29 million (1996: operating profit of FIM 29 million). Its net sales are derived mainly from rental income from properties and from charges for administrative services. The previous years operating profit was due to the sale of a property at the year end. Planned depreciation totalled FIM 31 (31) million. In 1997 the parent company had approved losses from previous years amounting to approximately FIM 100 million. These approved losses were almost entirely used during the year to offset, among other things, the profit on the sale of the Suomen Aldata Oy shares and the dividends paid by the subsidiaries. Merger of Aamulehti Corporation and MTV Corporation to form Alma Media Corporation On 22 April 1997 the Boards of Directors of Aamulehti Corporation and MTV Oy reached agreement to combine the two companies in a combination merger forming a new company called Alma Media Corporation. Extraordinary shareholders meetings of both companies approved the merger on 18 June 1997. Alma Media Corporation is due to start operating on 1 April 1998. The merger also required official approval and continuation of existing licences after the merger comes into effect. The most important of these licences was MTV Oys licence to engage in national commercial television and radio broadcasting. To ensure a favourable resolution to the question of licences well in advance of the merger, MTV Oy changed its name to MTV-Yhtymä Oy (MTV Corporation in English). This then allowed it to re-establish MTV Oy as a wholly owned subsidiary. MTV Corporation transferred its entire business operations and its licence to engage in national commercial television and radio broadcasting to the new MTV Oy, based on its interim accounts as at 31 August 1997. The Council of State (the Finnish government) approved this licence transfer on its existing terms and conditions in September 1997. The arrangement gave rise to the following technical amendment to the merger. MTV Corporation, which is owned by the shareholders of the old MTV Oy, will be merged with Aamulehti Corporation. After the merger the new MTV Oy will become a wholly owned subsidiary of Alma Media Corporation. In the merger the shares of Aamulehti Corporation will be exchanged for shares in Alma Media Corporation at a conversion ratio of 1:1 and the shares of MTV Corporation at a ratio of 1:137.5. An application will be submitted to the Helsinki Stock Exchange for listing of the Alma Media Corporation share. Trading in these shares is due to start on 1 April 1998. The merger process also required the members of both Boards of Directors to resign their positions in August 1997. On 28 August 1997 the Supervisory Boards of Aamulehti Corporation and MTV Corporation elected a joint Board of Directors for both companies comprising the persons stipulated in the merger agreement to constitute the Board of Directors of Alma Media Corporation. The Supervisory Board of Alma Media Corporation comprises 15 members, seven of whom were elected by a meeting of Aamulehti Corporation shareholders on 18 June 1997, five of whom were elected by a meeting of MTV Corporation shareholders on 18 June 1997, and three of whom will be elected by the new groups personnel. The Aamulehti Corporation shareholders meeting elected the following to the first Supervisory Board of Alma Media Corporation: Jukka Koivisto and Antero Siljola for a one-year period of office; Arjo Anttila and Jarmo Raveala for a two-year period of office; and Asmo Kalpala, Jonas Nyrén and Jukka Rantala for a three-year period of office. Kari Asikainen and Asko Haapaniemi were elected to Alma Medias Supervisory Board as employee representatives. TV4 AB In October 1997 Aamulehti Corporation and MTV Oy announced that they will acquire altogether 23.4 % of the shares in Swedens leading commercial TV channel, TV4 AB, from Investor AB and the Föreningsbanken trust funds. These shares represent 23.4 % of the voting power in TV4 AB. The transaction was arranged so that Aamulehti Corporation and MTV Corporations wholly owned subsidiary MTV Oy acquired Investor ABs 21.5 % holding in TV4 AB, i.e. Aamulehti Corporation acquired 16.5 % and MTV Oy 5.0 % of the TV4 AB shares. Furthermore, in a separate transaction Aamulehti Corporation acquired 1.9 % of the TV4 AB shares from the Föreningsbanken trust funds. The aggregate price of all the acquired TV4 AB shares totalled approximately FIM 534 million, of which Aamulehti Corporations share came to about FIM 420 million. The market capitalization of Alma Medias holding in TV4 AB on 31 December 1997 was FIM 440 million. TV4 AB will be an associated company of Alma Media Corporation when it starts operation on 1 April 1998. Aamulehti Corporation and MTV Oy together are its largest shareholder. TV4s net sales in 1996 were approximately SEK 1.6 billion and its share of the television advertising market in Sweden is more than 60 %. TV4, with an audience share of 28 %, is Swedens leading television channel in terms of total viewing time. The next most popular channels are the national SVT 2 (26 %) and SVT 1 (21 %), both of which are financed by licence fees. TV4 is also the only national commercial channel using a terrestrial network. Its broadcasts can be received by 99 % of the Swedish population. Suomen Aldata Oy In February 1997 Aamulehti Corporation divested its Aldata division, which was not one of its core businesses. Suomen Aldata Oy first acquired Modern Soft Oy, after which the Aamulehti Group sold its entire holding in Suomen Aldata Oy to a newly established company called Alcap Oy, in which Aamulehti Corporation owns 28 % of the shares. The parent companys gain from the sale totalled FIM 59 million, of which FIM 37 million were entered in the consolidated accounts. Subsequent events and prospects for 1998 Forecasts indicate that the Finnish economy will continue growing at about the same rate as last year. The media markets are expected to remain buoyant as well. The downswing in South East Asia is causing some degree of uncertainty but this is not expected to have a significant impact on companies operating in Finlands domestic market. Aamulehti Corporation and MTV Corporation will merge on 1 April 1998, forming Alma Media Corporation. Alma Medias core businesses will be newspaper publishing, television and radio broadcasting, and graphic services. A major focus of development will be the transformation of its R&D activities in new media into commercial businesses. Media advertising is expected to increase further and circulation growth to remain positive. Alpresss regional and local newspapers are expected to be at least as successful as in 1997. The competitive environments of Iltalehti and Kauppalehti will change. Iltalehtis eurotabloid format will be replaced by a standard tabloid format during the spring. At the same time the newspaper will be printed throughout in four colours and its printing will be distributed among several printing plants to bring the newspaper to consumers earlier in the day. Iltalehtis circulation revenue is expected to increase and the adoption of full four-colour printing will offer more scope for media sales. Kauppalehtis competitive situation changed at the end of last year when a new business daily came on the market in Finland. Kauppalehti has increased its editorial resources, boosted its marketing efforts and changed its printing schedule. These measures will lower Kauppalehtis profitability compared to last year. The net sales of Alma Medias newspapers are expected to increase although the changes in Iltalehti and Kauppalehti make it difficult to offer a precise forecast on the performance for the full year. The electronic communications sector in which MTV Oy operates is growing. Despite the recently started new national commercial channel, MTV3 is expected to retain its position in the media market. MTV Oys net sales and profitability are expected at least to reach last years levels. Alma Media owns 48 % of the national Radio Nova. Novas net sales are expected to triple and its profits to rise substantially. Paper prices are forecast to rise by about 5 % on last year. Alprints exports are expected to increase. The partial transfer of Iltalehtis printing outside the company will reduce Alpresss contribution to Alprints net sales. Alprints net sales are expected to remain at last years level but its profitability will probably weaken. The acquisition of the TV4 AB shares could slightly weaken Alma Medias result this year, due to an increase in interest expenses. On 1 April 1998 TV4 AB will become an associated company of Alma Media. Alma Medias share of TV4 ABs profits is expected to cover the goodwill depreciations arising from the share acquisition. The current year appears to be developing favourably for the company's operations, but owing to the heavy investments implemented at the end of last year Alma Media's result is not expected to exceed the level in 1997. Proposal to the annual general meeting The Board of Directors of Aamulehti Corporation will propose to the Annual General Meeting on 18 March 1998 that a dividend of FIM 3.30 (3.00) be paid per share. The figures presented in this bulletin are unaudited. AAMULEHTI CORPORATION GROUP INCOME STATEMENT, MFIM 1997 % 1996 % Net sales 1 652 1 623 Share of profit in associated companies 12 2 Other operating income 6 53 Operating profit before depreciation 320 19.4 313 19.3 Depreciation -142 -133 Operating profit 178 10.8 180 11.1 Financing income/expenses -15 -25 Profit before extraordinary items, taxes and minority interest 163 9.9 155 9.6 Extraordinary income 53 7 Extraordinary expenses -14 -3 Profit before taxes and minority interest 202 12.2 159 9.8 Direct taxes -36 -47 Minority interest from year-end result -3 -1 Profit for the year 163 9.9 111 6.8 GROUP BALANCE SHEET, MFIM 31.12.1997 31.12.1996 ASSETS Fixed assets and other long-term investments 1 641 1 288 Valuation items 5 9 Inventories 31 42 Receivables 167 160 Financial assets 96 104 SHAREHOLDERS EQUITY AND LIABILITIES Shareholders' equity 840 674 Minority interest 20 21 Obligatory provisions 6 5 Long-term liabilities 281 463 Current liabilities 793 440 CAPITAL EXPENDITURE, MFIM 1997 1996 Gross capital expenditure 510 338 SHARE INDICATORS, FIM 1997 1996 EPS 13.92 12.74 Equity/share 87.41 89.91 GROUP CONTINGENT LIABILITIES, MFIM Against own debt Assets pledged 400 19 Mortgages 254 275 Chattel mortgages 141 92 Guarantees 2 - On behalf of associated companies Guarantees 8 4 On behalf of others Guarantees - 2 Other own commitments Leasing commitments 5 8 Buy back commitments 44 45 Other commitments - 4 Total 854 449 Group leasing payments, MFIM In 1998 1 After 1998 4 Derivative contracts MFIM 181,7 of foreign currency loans were protected against exchange rate fluctuations using forward contracts and currency swaps. The exchange rate differences on loans and the derivative results compared to the balance sheet exchange rates are entered under Other Financial Income and Expenses. Net sales Alpress 1 014 902 Alprint 888 848 Aldata - 114 Alexpress 14 11 Parent company 62 66 Share of profit in associated companies - - Intragroup -326 -318 Total 1 652 1 623 Operating profit 1997 1996 Alpress 130 78 Alprint 88 94 Aldata - 3 Alexpress -15 -13 Parent company -29 29 Share of profit in associated companies 12 2 Intragroup -8 -13 Total 178 180 Personnel on average. *) 1997 1996 Alpress 1 091 1 046 Alprint 963 919 Aldata - 132 Alexpress 68 59 Parent company 38 25 Total 2 160 2 181 *) Besides part-time deliverers 947 848 These figures are unaudited. AAMULEHTI CORPORATION Ahti Martikainen Vice President, Corporate Commmunications Further information: President and CEO Matti Packalén, tel. +358 9 507 8715 CFO Ritva Sallinen, tel. +358 3 266 6831 http://www.aly.fi Enclosures: 1. MTV Corporation:Report by the Board of Directors 2. MTV Group: Consolidated Income Statement 1.Jan - 31.Dec. 1997 and Consolidated Balance Sheet 31.Dec. 1997 3.Alma Media: Consolidated Income Statement 1.Jan - 31.Dec. 1997 and Consolidated Balance Sheet 31.Dec. 1997 (pro forma) Appendix 1. MTV Corporation:Report by the Board of Directors General The Boards of Directors of MTV Oy and Aamulehti Corporation signed a merger agreement on 22 April 1997. The agreement provides for a combination merger, scheduled to come into for on 1 April 1998, that will merge the two companies into a new media company called Alma Media Corporation. Application will be made for the shares of the newly established company to be listed on the Helsinki Stock Exchange. The shareholders' meetings of the two companies approved the merger agreement on 18 June 1997. In order to simplify implementation of the combination merger, MTV Oy's Board of Directors and its Supervisory Board decided in June 1997 to transfer the company's entire business to a newly established subsidiary. MTV Oy subscribed for all the shares of this subsidiary. The trading name of the new company became MTV Oy, and the former MTV Oy simultaneously changed its trading name to MTV Corporation. The business operations were transferred on 1 September 1997 when the transfer of MTV Corporation's operating licence to the new subsidiary had received the Council of State's approval. The combination merger is scheduled to merge MTV Corporation and Aamulehti Corporation into the new Alma Media Corporation on 1 April 1998. The District Court's consent to implement the merger was received on 16 December 1997. Net sales and result MTV Group's net sales amounted to FIM 1078.9 million, up 10.6 % over the previous year. Net sales of advertising time grew by 10.3 % to FIM 1035.4 million. Net sales of television-related services totalled FIM 43.5 million and other income from business operations excluded from net sales was FIM 18.8 million. The net sales of the parent company, MTV Corporation, were FIM 517.5 million, a comparative increase of 14.5 %. MTV Corpo
- Date: 13.2.1998, 08:00
- News type: Stock exchange release
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