ALMA MEDIA ACQUIRES 30,8 % OF TALENTUM FOR MFIM 328
ALMA MEDIA CORP. STOCK EXCh. RELEASE 20 MARCH 2001, 6.55 PM (EET)1/3 ALMA MEDIA ACQUIRES 30,8 % OF TALENTUM FOR MFIM 328 Alma Media has raised its holding in Talentum Oyj, a public company listed on the Helsinki Exchanges, to 30,8 %. The companies have wide potential for co-operation in business information, b-to-b advertising and new media. Alma Media paid MFIM xx for its new holding. Alma Media has acquired 30.8 % of Talentum Oyj, a publishing, Internet and new-media services and direct marketing company listed on the Helsinki Exchanges. The sellers were mainly foreign and domestic institutional investors. Talentums consolidated net sales in 2000 were MFIM 697, up 11.9 % %) on the previous year. The company reported a consolidated operating profit of MFIM 51, which included extraordinary items totalling MFIM 136. The group has more than one thousand employees. The companys principal shareholders after Alma Media are Suomen Lakimiesliitto 9.3 %, Insinööriliitto Il ry 5.5 %, Suomen Ekonomiliitto-SEFE and Aimonoke Oy (total) 5.2 %, and Tekniikan Akateemiset ry and Diatieto Oy (total) 5.2 %. Talentums revenues from publishing activities last year totalled approximately MFIM 318 and the operating profit was MFIM 30. Publishing activities include Talentum Oyjs magazine publishing, and the book publishing and training activities of the former Kauppakaari group. After the merger of Talentum and Kauppakaari, Talentums publishing activities have comprised business and information technology publications, and law, business and information technology books. Talentums best known publications are the business monthly Talouselämä (Business Life) and Tekniikka & Talous (Technology and Business). The group publishes altogether nine magazines and newspapers. Talentums Internet and new-media activities include the Internet consulting company Satama Interactive Oyj and WOW-verkkobrandit Oy, which concentrates on online content. Online activities accounted for 24.1 % of Talentums consolidated net sales in 2000. Net sales from online activities totalled MFIM 192, up 110 % on the previous year. This figure includes intragroup sales of FIM 24 million. The operating profit was MFIM 8 million, which included non- recurring items (net) totalling MFIM 171. Talentum Oyj owns 62.1 % of Satama Interactive Oy, which is listed on the NM (New Market) list of the Helsinki Exchanges. Apart from Finland Satama Interactive also operated in Sweden, Great Britain, Germany, the Netherlands and the USA during 2000. 2/3 Net sales of the Satama Interactive Oyj group totalled MFIM 179, an increase of 114.6 %. Its consolidated result before taxes and extraordinary items was a loss of MFIM 111, which included a MEUR 1.9 provision for restructuring measures in Great Britain and the USA. Satama Interactive groups operations in Finland were profitable. The losses were due to the slower than planned integration of its foreign operations and, above all, to local difficulties experienced by its office in the USA. Talentum groups direct marketing activities comprise the operations of Suoramarkkinointi Mega Oy. Direct marketing accounted for 2.8 % of Talentums consolidated net sales. Most of Suoramarkkinointi Mega Oys business comprised telemarketing. Mega operates in 12 localities in Finland, and through a local franchising partner in a further five localities in the Baltic countries. Suoramarkkinointi Mega Oys net sales increased 13.7 % and totalled MFIM 35. The operating profit before goodwill amortization was MFIM 10. Talentum Oyj forecast a positive result for 2001 in its financial statements bulletin published on 15 February 2001. Satama Interactive Oyjs forecast in its financial statements bulletin dated 15 February was as follows: Satama has a solid financial standing and the company will not need additional financing during this year in implementing its defined strategy. Satama will focus on improving profitability during 2001. Nevertheless, the year 2001 will be loss-making. The year 2002 will beprofitable. The measures taken in the USA and the UK will have a positive impact on profitability but on the other hand they will lowerrevenues in the short term. Because of these actions revenues during the first quarter will be approximately on the level of the last quarter of 2000. According to Alma Medias CEO, Mr Matti Packalén, this acquisition signifies a long-term investment in a good company. "We were offered Talentum Oyjs shares by investment brokers. We have been discussing co-operation with Talentums top management for years and have mapped out various forms of co-operation that would benefit both parties," Mr Packalén commented. "We already work together in many areas; indeed, Talentum is one of Alma Medias largest customers for printing services," he added. Natural areas for co-operation include the production and distribution of business information and b-to-b marketing, Mr Packalén said. Further potential for co-operation exists, for example in various new-media projects and television broadcasting because Talentum holds 3/3 a 47.5 % stake in Varesvuo Partners Oy, which produces television programmes. In the short term the share acquisition will increase Alma Medias goodwill amortization by approximately MFIM 10 per year over a 20- year amortization period. However, the synergistic benefits to be derived from the new co-operation will exceed this figure significantly over in the years ahead. ALMA MEDIA CORPORATION Ahti Martikainen Vice President, Corporate Communications and Investor Relations Further information: President and CEO Matti Packalen. tel. + 358 9 507 8715 Distribution: Helsinki Exchanges, Principal Media
- Date: 20.3.2001, 08:00
- News type: Stock exchange release
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