Alma Regional Media to modernise its operational model and initiates statutory personnel negotiations

Alma Media Corporation        Press Release                                                           21 September 2015, 10:00 a.m. (EET)

ALMA REGIONAL MEDIA TO MODERNISE ITS OPERATIONAL MODEL AND INITIATES STATUTORY PERSONNEL NEGOTIATIONS

Alma Regional Media, the regional and local newspaper unit of Alma Media Corporation, initiates statutory personnel negotiations to reorganise its operations. The negotiations apply to all the publication employees of Regional Media, with the exception of papers published in Lapland. Alma Manu Oy, a printing and distribution company of Regional Media, is not included in the negotiations.

The negotiations planned by Alma Regional Media are based on the need to modernise the operational models of newspapers to better support the media that is becoming more and more digitised. The financial development of the newspaper family, influenced by many years of revenue deterioration in the printed media and the resulting substantial weakening of earning power, is also necessitating operational changes.

– Profits from advertising sales and content sales have been falling for several years. The sales of digital products and services are growing but the profits obtained from them are not sufficient to compensate for the loss of profit accumulating in the printed media. The pressure is focused on profits as revenue has decreased significantly more than expenses, says Kari Juutilainen, Head of Unit and Senior Vice President of Alma Regional Media.

The objective of the reorganising is to inspect all operations in deliveries, production, sales, customer service, and support functions. Structural changes, such as reducing the publication frequency of local newspapers, are also possible. Reducing the publication frequency of regional newspapers (Aamulehti and Satakunnan Kansa) is not included in the plans.

According to the preliminary view of Alma Regional Media, the number of employees may be reduced by a maximum of 85 man-years after the planned actions. All in all, the negotiations apply to 500 people.

Alma Regional Media publishes Aamulehti, Satakunnan Kansa, Lapin Kansa/Pohjolan Sanomat as well as local and town papers around Finland. Regional Media also includes the printing press and distribution house Alma Manu Oy.

For more information, please contact:

Kari Juutilainen, Head of Unit and Senior Vice President, Alma Regional Media, tel. +358 10 665 3442.

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. In 2014, the company employed an average of 1,830 professionals (excluding deliverers), of whom approximately one quarter worked outside Finland. Alma Media’s revenue in 2014 totalled approximately EUR 295 million. Alma Media’s share is listed on NASDAQ OMX Helsinki. Read more at www.almamedia.com.

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