Alma Media Corporation Stock Exchange Release 15 April 2014, 9:00 a.m. (EEST)
ALMA MEDIA LOWERS ITS OUTLOOK FOR FIRST HALF OF 2014
The revenue and result of Alma Media's printnewspaper business, especially regional media, did not develop as expected during the first quarter of the year. Therefore, the company has lowered its estimate of the development of both revenue and result during the first half of the year, as announced in the Financial Statements Release on 13 February 2014.
The economic operating environment in Finland has remained weaker than expected in the beginning of 2014. The advertising market for print media has declined more than anticipated. In the current economic situation, forecasting the operating environment and especially advertising sales is exceptionally difficult.
In its Financial Statements Release on 13 February 2014, Alma Media expected the revenue of the first half of 2014 to be on a par with, or slightly lower than the corresponding period in 2013. Operating profit excluding non-recurring items was estimated to be MEUR 9.0-10.5.
According to the company's new estimate, the revenue for the first half of the year will be lower than the corresponding period in 2013 and operating profit excluding non-recurring items will be below the level estimated in the Financial Statements Release on 13 February 2014 .
Revenue for the first half of 2013 was MEUR 151.2 and operating profit excluding non-recurring items MEUR 10.1.
Due to the performance being weaker than expected, Alma Media will launch streamlining measures in Alma Regional Media. The unit will commence statutory employee negotiations concerning a plan to seek cost savings. The negotiations aim to achieve annual savings of MEUR 1.5. The negotiations will not concern terminations of employment.
In addition, Alma Media will commence statutory employee negotiations in the Group's financial administration, with the negotiations aiming to centralise financial administration services in Tampere. The negotiations concern the whole personnel of financial administration, and as a result of the restructuring, the number of personnel may decrease by a maximum of 11 persons.
Alma Media will publish its Interim Report for the first quarter of 2014 on 29 April 2014 at 9.00 a.m.
ALMA MEDIA CORPORATION
Vice President, Corporate Communications and IR
For more information, please contact:
Juha Nuutinen, CFO, Alma Media Corporation, tel. +358 10 665 3873
Distribution: NASDAQ OMX Helsinki
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 Baltic States and Central Europe. The company employs 1,965 professionals (excluding distributors), of whom approximately one third are based 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.