Alma Media's Financial Statements Release 2013: Digital business growth and cost savings offset EBITDA decline

Alma Media Corporation Financial Statements Release 13 February 2014 at 9:00 a.m.

Alma Media's Financial Statements Release 2013:
DIGITAL BUSINESS GROWTH AND COST SAVINGS OFFSET EBITDA DECLINE

Financial performance October-December 2013:

- Revenue was MEUR 77.3 (82.7), down 6.5%.
- Content revenue was MEUR 28.7 (29.9), down 4.1%; advertising revenue was MEUR 38.4 (42.2), down
  8.9%; service revenue was MEUR 10.2 (10.6), down 4.0%.
- EBITDA (Earnings before interest, taxes, depreciation and amortisation) excluding non-recurring items
  was MEUR 10.1 (10.6), down 4.4%.
- EBITDA was MEUR 9.9 (9.7), up 2.3%.
- Operating profit excluding non-recurring items was MEUR 6.4 (8.5), 8.2% (10.3%) of revenue, down 25%.
- Operating profit was MEUR 4.3 (7.6) or 5.6% (9.1%) of revenue, down 42.9%.
- Profit for the period was MEUR -2.0 (2.1), down 192.6%.
- The result for the review period includes a non-recurring item, write-down of the Group's assets by
   MEUR 6.8.
- Earnings per share were EUR -0.03 (0.03).

Financial performance full year 2013:

- Revenue was MEUR 300.2 (320.1), down 6.2%.
- Content revenue was MEUR 115.3 (122.3), down 5.7%; advertising revenue was MEUR 147.3 (160.8),
  down 8.3%; service revenue was MEUR 37.6 (37.1), up 1.5%.
- EBITDA (Earnings before interest, taxes, depreciation and amortisation) excluding non-recurring items 
  was MEUR 37.5 (45.1), down 16.7%.
- EBITDA was MEUR 45.3 (39.5), up 14.5%.
- Operating profit excluding non-recurring items was MEUR 24.2 (33.5) or 8.0% (10.5%) of revenue,
  down 27.8%.
- Operating profit was MEUR 27.0 (26.5) or 9.0% (8.3%) of revenue, up 1.9%.
- Profit for the period was MEUR 16.0 (17.4), down -8.2%.
- The result for the review period includes a non-recurring item, proceeds of MEUR 8.3 from the sale of the  
  Mascus business, as well as write-downs of Group's assets and restructuring expenses,
  MEUR 10,3.
- Earnings per share were EUR 0.20 (0.22).
- Proposed capital repayment is EUR 0.10 (2012 dividend: EUR 0.10) per share. In addition, the Board proposes to the Annual General Meeting that it be given an authorisation to decide on an additional capital repayment of no more than EUR 0.10 per share.

KEY FIGURES 2013 2012 Change 2013 2012 Change
MEUR Q4 Q4 % Q1-Q4 Q1-Q4 %
Revenue 77.3 82.7 -5.4 -6.5 300.2 320.1 -19.9 -6.2
Content revenue 28.7 29.9 -1.2 -4.1 115.3 122.3 -7.0 -5.7
Advertising revenue 38.4 42.2 -3.8 -8.9 147.3 160.8 -13.4 -8.3
Service revenue 10.2 10.6 -0.4 -4.0 37.6 37.1 0.6 1.5
Total expenses excluding non-recurring items 71.1 74.4 -3.3 -4.4 276.7 287.0 -10.3 -3.6
EBITDA excluding non-recurring items 10.1 10.6 -0.5 -4.8 37.5 45.1 -7.6 -16.7
EBITDA  9.9 9.7 0.2 2.3 45.3 39.5 5.7 14.5
Operating profit excluding non-recurring items 6.4 8.5 -2.1 -25.0 24.2 33.5 -9.3 -27.8
% of revenue 8.2 10.3     8.0 10.5    
Operating profit (loss) 4.3 7.6 -3.2 -42.9 27.0 26.5 0.5 1.9
% of revenue 5.6 9.1     9.0 8.3    
Profit for the period -2.0 2.1 -4.1 -192.6 16.0 17.4 -1.4 -8.2
Earnings per share, EUR (basic) -0.03 0.03 -0.05 -203.1 0.20 0.22 -0.02 -9.6
Earnings per share, EUR (diluted) -0.03 0.03 -0.05 -203.3 0.20 0.22 -0.02 -9.5

Dividend proposal to the Annual General Meeting:

On 31 December 2013, the Group's parent company had distributable funds totalling EUR 23,905,611 (8,014,054). No essential changes in the company's financial standing have taken place after the end of the financial year. Alma Media's Board of Directors proposes to the Annual General Meeting that a capital repayment of EUR 0.10 (0.10) per share be paid from the reserve for invested non-restricted equity for the financial year 2013. Based on the number of shares on the closing date, 31 December 2013, the total capital repayment would amount to EUR 7,548,685 (dividend for 2012: EUR 7,548,685).

In addition, the Board proposes to the Annual General Meeting that it be given an authorisation to decide on an additional capital repayment of no more than EUR 0.10 per share.

Outlook for 2014:

Economic growth is estimated to pick up gradually in Europe but remain weak during the first half of 2014 in Finland. The decline in media advertising is expected to slow down during the first half of the year.

Alma Media expects the revenue of the first half of 2014 to be on a par with the level of 2013 or slightly lower. The operating profit excluding non-recurring items is estimated to amount to MEUR 9,0 - 10,5. Revenue for the first half of 2013 was MEUR 151.2 and operating profit excluding non-recurring items MEUR 10.1.

Kai Telanne, President and CEO:

For media companies, 2013 was a year of strong renewal and efficiency improvements. Accelerated by the weak economic situation, print media sales dropped as media consumption increasingly shifted to digital channels.

Alma Media continued its investments in future business. The Group's revenue from digital products and services increased by 8.4% in 2013. Digital products and services accounted for 28.1% (24.3%) of the Group's revenue. Kauppalehti's digital content sales increased by 22.1% in 2013.

The popularity of mobile services grew at a strong rate throughout the Group. For example, Iltalehti's mobile advertising sales grew fivefold during the year. Performance-based network advertising turned to significant growth, and related products were developed.

Towards the end of 2013, Alma Media decided to expand its international recruitment business: the services of Monster in Poland, Hungary and the Czech Republic were added to Alma Media's recruitment service offering at the beginning of 2014. The share of the digital recruitment business of total Group revenue was 10.7%. The profitability of Alma Media's international business operations continued to develop favourably, and the decline in the Finnish recruitment business, which had continued all year long, slowed down towards the end of the year.

The development of Alma Regional Media's regional newspapers' online services proceeded. In order to improve profitability, it was decided to publish the print edition of Pohjolan Sanomat five days per week. The change will took effect as of the beginning of 2014. The announced terminations of early morning delivery agreements of papers and increases in the agreement prices will increase uncertainty in the business environment with regard to print media.

In accordance with its strategy, Alma Media will continue to make its publishing operations more multi-channel and increase its digital business. The aim is to increase the share of digital revenue to 50% by 2020. This will be achieved by developing the digital capacity and moving paid content to online and mobile environments. Through these measures Alma Media is well set for the future, regardless of economic cycles, and starts the year on a solid foundation.

For more information, please contact:

Kai Telanne, President and CEO, telephone +358 10 665 3500
Juha Nuutinen, CFO, telephone +358 10 665 3873

Disclosure procedure:
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 Financial Statement 2013. The complete report is attached to this release in pdf format. The Financial Statement is also available on Alma Media's website at www.almamedia.com/investors/.

Conference, webcast and conference call:
A conference for Finnish media, investors and analysts will be held on the same day at 11.00-12.00 EET 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 Alma Media's website at 11.00 EET.

To participate in the conference, kindly register beforehand by e-mail, kutsut@almamedia.fi.

An international conference call and audio webcast concerning the financial result 2013 will begin at 13.00 EET. You can participate in the conference by calling +44(0)20 3364 5381 (confirmation code: 1621893) or follow the direct transmission at www.almamedia.com/press_room/downloads/presentations/.

Rauno Heinonen
Vice President, Corporate Communications and IR
Alma Media Corporation

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 1,965 professionals (excluding distributors), of whom approximately one third work outside Finland. Alma Media's revenue in 2013 totalled approximately MEUR 300. Alma Media's share is listed on NASDAQ OMX Helsinki. Read more at www.almamedia.com.

  • Date: 13.2.2014, 10:00
  • News type: Stock exchange release

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