Main items in Alma Media’s (ID code 1449580-9) final accounts 1 Jan. 2005–7 Nov. 2005

ALMA MEDIA CORP.  STOCK EXCHANGE RELEASE    2 DEC 2005, 16.30             1/5

 

MAIN ITEMS IN ALMA MEDIA’S (ID code 1449580-9) FINAL ACCOUNTS

1 JAN. 2005 -7 NOV. 2005

 

The merger of Alma Media Corporation (corporate ID code 1449580-9) and Almanova Corporation (corporate ID code 1944757-4) was registered on 7 November 2005. Following the merger Almanova Oyj was renamed Alma Media Corporation. This stock exchange release details the main items in the final accounts of the merged Alma Media Corporation (corporate ID code 1449580-9) for the period 1 January – 7 November 2005. Net sales from the continuing operations of the merged Alma Media Group between 1 January and 7 November 2005 totalled MEUR 235.7 (1 Jan.-31 Dec. 2004: MEUR 283.6) and its operating profit from continuing operations between 1 January and 7 November 2005 was MEUR 32.5 (1 Jan.-31 Dec. 2004: MEUR 37.0). The operating profit includes one-time items totalling MEUR 2.9 from restructuring of the parent company and Alpress, and from the costs of the Broadcasting division divestment. The Group’s balance sheet at 7 November 2005 totalled MEUR 642.7 (31 Dec. 2004: MEUR 354.8).

 

The income statement in the final accounts shows the continuing operations of the merged Alma Media Group (parent company corporate ID code 1449580-9) for the period 1 Jan.-7 Nov. 2005 and separately the result of the Broadcasting division, treated as a discontinued operation. The figures in the comparison year are the consolidated income statement for 2004. Discontinued operations are not shown in the balance sheet separately.

 

The reporting segments in these final accounts are as follows: The Newspapers group corresponds to the former Alpress division, the Kauppalehti group to the BIG division, and Marketplaces to the Media Services division. These entities make up the continuing operations as defined under IFRS. The activities of the Broadcasting division are shown in the final accounts as the discontinued operation.

 

The figures in this release are unaudited. The audited final accounts and financial statements are available for inspection by shareholders from Wednesday 7 December 2005 on the company’s website http://almamedia.fi and the company’s head office, Eteläesplanadi 20, Helsinki.

 

ANALYSIS OF DISTRIBUTION OF MERGER CONSIDERATION

 

The merger of Almanova and Alma Media was put into effect on 7 November 2005. Alma Media shareholders received as consideration seven (7) Almanova shares for three (3) Alma Media Series I shares and two (2) Almanova shares for (1) Alma Media Series II series shares as stipulated in the merger plan made by Almanova and Alma Media. Insofar as the shareholding of holders of Alma Media Series I shares was not divisible by three, merger consideration of EUR 14.00 per Series I share in Alma Media exceeding the highest number of shares divisible by three was paid in cash. In the merger Alma Media’s assets and liabilities were transferred to Almanova, after which Alma Media was dissolved.

 

The Alma Media shares and option warrants held by Almanova, as well as the Alma Media shares owned by Bonnier & Bonnier AB and Proventus Industrier AB and transferred to Almanova on 2 November 2005 prior to the merger, were annulled in conjunction with the merger.

 

APPROVAL OF MERGER

 

Not a single shareholder asked for redemption.

 

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NET SALES AND RESULT

 

Net sales of the Group’s continuing operations in the period 1 Jan.-7 Nov. 2005 amounted to MEUR 235.7 (1 Jan.-31 Dec. 2004: MEUR 283.6). The Group’s net sales developed as planned and the difference compared with the previous year was due to the different length of reporting period.

 

The profitability of the Group’s continuing operations grew favourably. The operating profit of the Group’s continuing operations in 1 Jan.-7 Nov. 2005 excluding the capital gain on the Broadcasting sale was MEUR 32.5 or 13.8 % of net sales (1 Jan.-31 Dec. 2004: MEUR 37.0, or 13.0 % of net sales). The operating profit includes one-time items totalling MEUR 2.9 arising from the restructuring of the parent company and Alpress and from the costs associated with the Broadcasting division’s divestment.

 

BALANCE SHEET AND FINANCIAL POSITION

 

The balance sheet on 7 November 2005 totalled MEUR 642.7 (31 Dec. 2004: MEUR 354.8). The main reason for the increase in the balance sheet total was the sale of the Broadcasting division in April 2005, on which the Group recorded a gain of MEUR 324.5.

 

The company’s equity ratio on 7 November 2005 was 81.7 % (31 Dec. 2004: 43.1 %) and shareholders’ equity per share was EUR 7.87 (31 Dec. 2004: EUR 2.32).

 

The Group’s cash flow was good. Alma Media’s net liabilities on 7 November 2005 totalled MEUR -56.9 (31 Dec. 2004: MEUR 79.2).

 

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CONSOLIDATED INCOME STATEMENT (IFRS), EUR million

 

 

 

 

CONSOLIDATED BALANCE SHEET (IFRS), EUR million               4/5

 

 

ALMA MEDIA CORPORATION

 

Ahti Martikainen

Senior Vice President, Corporate Communications and Investor Relations

 

Further information:

 

Teemu Kangas-Kärki, CFO, tel. +358 10 665 2244

Ahti Martikainen, SVP Corporate Communications and IR, tel. +358 10 665 2242

5/5

 

 

DISTRIBUTION: Helsinki Exchanges, principal media

                                                                 

Alma Media is a media corporation concentrating on publishing, on producing and distributing financial information, and on providing online services. The Group has business, afternoon, regional and local newspapers as well as free sheets in its portfolio. It also runs leading online marketplaces in Finland and is expanding marketplace operations beyond Finland’s borders.

 

Alma Media’s best known products are the Aamulehti, Iltalehti, and

Kauppalehti papers and the Etuovi.com home-buying Internet service. The

Group derives close to 50 % of its net sales from advertising sales, 40 % from newspaper circulation revenues. Pro form net sales in 2004 (excluding the television and radio broadcasting operation divested in 2005) amounted to EUR 284 million, generating an operating margin of 12.9 %. More information at http://www.almamedia.fi/home.