Publisher joint venture to develop an early morning delivery network

Alma Media Corporation      Press release       31 October 2014 at 12.00 am (EET)

PUBLISHER JOINT VENTURE TO DEVELOP AN EARLY MORNING DELIVERY NETWORK

Major Finnish newspaper publishers have decided to investigate the possibility of establishing a joint venture with the aim of developing the co-operation between early morning delivery service providers and their logistics as well as to manage the nationwide sales of delivery services. The aim is to create a system for the early morning delivery network of newspaper publishers so it could take on more material to deliver and to ensure high-quality and cost-efficient operations.

The company to be established is currently looking for a director to oversee the launch of the joint venture.

The delivery markets are undergoing a dramatic transition as the volumes of printed media and letter mail is in steep decline. Last year, Itella published its new strategy, by which it will shift its main focus on the Russian market and the delivery of online purchases in Finland. As a result, Finnish newspaper and magazine publishers have had to accept substantial increases in delivery costs. Publishing houses are unable to sustain any further increases and some of them have already had to resume early morning deliveries instead of using Itella or to look for a new delivery partner. This has been the case in, for example, the delivery area of Turun Sanomat and Kainuun Sanomat and Sanoma Lehtimedia in Southeastern Finland.

“A reliable and cost-efficient delivery is one of the key assets of Finnish newspapers. We have arrived at a situation where we have to actively seek alternatives to secure this strength,” says Pekka Soini, CEO of Sanoma Media Finland.

“We will keep an open mind when seeking new logistics partnerships in building a nationwide early morning delivery network,” says Kai Telanne, President and CEO, Alma Media.

The founding partners of the joint venture are: Alma Media Corporation, Sanoma Media Finland, Keskisuomalainen Oyj, TS-yhtymä, Kaleva Oy, Mediatalo Esa and Länsi-Savo group.

For more information, please contact:

Kai Telanne, Alma Media Corporation, tel. +358 10 665 3500
Pekka Soini Sanoma Media Finland Oy, tel. +358 0400 427835
Jukka Ottela Mediatalo Esa, tel. +358 44 736 202

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.

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