Newspapers 2009
Newspapers segment 2009
The Newspapers segment in 2009 reports the publishing activities of 35 newspapers. The largest titles are Aamulehti and Iltalehti.
The number of Alma Media’s newspapers decreased by two titles in 2009. A decision was made to discontinue the local paper Kokkolan Sanomat because of its losses, and the local paper Vieskalainen was sold to Jokilaaksojen Kustannus Oy.
Financial development in 2009
The Newspapers segment's net sales in 2009 decreased 6.5% from the previous year to MEUR 221.3 (236.7). During the year, the quarterly growth rates of the newspapers' net sales experienced significant fluctuation due to the market conditions.
The advertising sales of Alma Media newspapers decreased significantly in 2009, the full-year total being MEUR 101.3 (117.7). The largest titles suffered most from the marked advertising market decline in the beginning of the year. For the smaller regional and local papers, the market decline had a delayed effect.
In comparison with the previous year, online advertising sales picked up slightly towards the end of the year. Online advertising sales grew particularly well for Iltalehti, whose online service Iltalehti.fi was the largest Finnish online medium with its approximately 2 million average unique visitors per week at the end of the year.
Circulation net sales for the newspapers grew during the year thanks to price increases. For regional and local newspapers, circulation development declined slightly, partly due to cutbacks in free circulation. The single-copy sales of Iltalehti decreased approximately 6.1%, circulation by approximately 7.8%, while the entire afternoon paper market dropped by approximately 6.1%. Iltalehti retained its market share at the previous year’s level, at 42.9% (42.9%).
The full-year operating profit for the Newspapers segment declined to MEUR 37.3 (41.5). The operating profit for the segment without one-time items declined to MEUR 38.4 (41.5), with relative profitability remaining at a good 16.8-per cent level.
Three regional papers shifting to tabloid format
Alma Media’s regional papers appearing in the north of Finland— Lapin Kansa, Kainuun Sanomat and Pohjolan Sanomat—started a wide-ranging renewal project at the end of the year 2009. They will shift to tabloid format in January 2011, but the renewal also includes modernisation of the papers’ contents and structures. The editorial offices will adopt new methodologies, providing even more attractive content to readers. Online content will play an essential role in the constantly developing service package.
Large-scale investment in Tampere printing house being prepared
Online business is increasing in importance for Alma Media, yet the company makes significant investments in the development of the printed paper. Towards the end of 2009, Alma Media announced that it will start preparing for a major investment in the modernisation of its printing facilities in Tampere, Finland. This investment project is expected to take place in 2010–2012 and be valued at MEUR 30–50. A decision on the method and structure of the investment will be made during the first half of 2010.
In 2009, Alma Media combined all of its printing and distribution operations into one Group-level service unit. The change involved all three newspaper printing houses located in Tampere, Pori and Rovaniemi, as well as the early-morning delivery company Aamujakelu Oy operating in the Pirkanmaa province, the Kemi–Tornio region and the Pori region. The new unit is in operation since the beginning of 2010.
Comparison period figures in brackets.
Page last updated 24.02.2010
