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:
- Revenue MEUR 74.9 (81.1), down 7.7%.
- Content 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%.
- EBITDA (Earnings before interests, taxes, depreciation and amortisation) excluding non-recurring items MEUR 8.0 (11.6), down 31.0%.
- EBITDA MEUR 8.0 (10.7), down 25.8%.
- Operating profit excluding non-recurring items MEUR 5.5 (8.5), 7.3% (10.4%) of revenue, down 35.5%.
- Operating profit MEUR 5.4 (6.0), 7.2% (7.4%) of revenue, down 9.5%.
- Profit for the period MEUR 4.1 (2.7), up 54.8%.
- Earnings per share EUR 0.05 (0.03).
|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|
|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 environment.
For more information, please contact:
Kai Telanne, President and CEO, telephone +358 10 665 3500
Juha Nuutinen, CFO, telephone +358 10 665 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 www.almamedia.com/investors/.
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 www.almamedia.com/press_room/downloads/presentations/
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.