Alma Media changes its segment structure– cooperation between media and marketplaces intensifies

Alma Media Corporation        Press release                               17 February 2021

ALMA MEDIA CHANGES ITS SEGMENT STRUCTURE– COOPERATION BETWEEN MEDIA AND MARKETPLACES INTENSIFIES

Alma Media is revising its segment structure from 1 March 2021, the services of Alma Mediapartners will be part of the Alma Consumer business segment. Until now, Alma Mediapartners has been reported as part of the Alma Markets segment. In connection with the segment structure change, the name Alma Markets will be changed to Alma Career.

Alma Media is changing its segment structure in order to better utilise the synergy between digital media and services as well as the growth opportunities of digital trade in the marketplace business.

As a result of the revision, the business of the Alma Consumer segment will include the multi-channel news and lifestyle media Iltalehti, Finland’s leading housing marketplace Etuovi and housing rental marketplace Vuokraovi, the automotive marketplace Autotalli as well as the housing and car trade systems that serve companies operating in these fields. In addition, the segment includes comparison services, such as Autojerry, Urakkamaailma and Etua. Alma Consumer’s competitiveness is based on the superior reach of media and services as a digital network, the unique user data pool and the developing industry verticals in the areas of media, housing, cars and comparison services. The Alma Consumer segment is led by Kari Kivelä.

The Alma Career segment will focus on recruitment business and recruitment-related services in Eastern Central Europe and Finland. Alma Career’s recruitment services include Jobs.cz, Prace.cz, CVOnline, Profesia.sk, MojPosao.net, MojPosao.ba and Monster.fi. In addition to promoting job boards and recruitment advertising, Alma Career’s strategy focuses on expanding the business into career development and digital staffing services, on-demand, managed services as well as professional education. The Alma Career segment is led by Vesa-Pekka Kirsi.

The Alma Talent segment includes increasingly digitising subscription-based content media, such as Kauppalehti, Talouselämä and Tekniikka&Talous, as well as services targeted at companies and professionals. The segment change will have no effect on the organisation of the Alma Talent segment. In addition to providing content media, Alma Talent’s strategic goal is to build an increasingly strong and integrated offering of digital data, content and marketplaces services.  In January 2021, Alma Talent Services was organised into one entity that provides professionals and businesses with a comprehensive range of digital services related to company information, real estate information, law, financial management, professional development, leadership and marketing services. The Alma Talent segment is led by Juha-Petri Loimovuori.

– In line with our strategy, the aim of the segment change and reorganisation is to boost the development and profitable growth of the media and marketplace business. Alma Consumer will be a unique entity of digital services and media for consumers in Finland, focusing on the important areas of life. We will provide consumers with a more comprehensive range of content and services that make everyday life easier. At the same time, we will enable efficient, data-based sales processes and marketing solutions for companies operating in the housing or automotive business, says Kai Telanne, Alma Media’s President and CEO.

– We will also continue expanding into new digital services of the value chain that help us fullfill our customers’ needs. At the same time, we will establish partnerships with networks of service providers in the areas such as work, housing and cars, he continues.

The reporting in Alma Media’s first interim report for 2021 will follow the new segment structure. Quarter-specific and full-year comparison data for 2020 will be published in April 2021.

Pro forma key figures for 2020 in accordance with the new segment structure

	Alma Career	Alma Talent	Alma Consumer
Revenue, MEUR	62.7	95.1	69.9
Digital %	100.0	46.9	75.3
Adjusted operating profit, MEUR	20.6	16.2	15.0
Adjusted operating profit, %	32.9	17.1	21.5

Alma Media will also change its revenue classification

Along with the progress of Alma Media’s digital transformation, the company has expanded its operations from media into marketplace business and digital services. In connection with the segment structure change, Alma Media will also change its revenue reporting. Revenue will be broken down to marketplaces, media and service revenue.

In April 2021, Alma Media will publish more detailed quarter-specific and full-year comparison data for 2020 in accordance with the new revenue classification.

Reported revenue in 2020	MEUR	Pro forma according to the new revenue classification	MEUR
Content revenue	59.1	Marketplaces	86.8
Advertising	128.6	Media	95.4
Service	42.6	Services	48.0
Total	230.2		230.2

In the new reporting, revenue from media will additionally be divided into two subcategories, consisting of media content revenue and media advertising revenue.

Alma Media’s strategy for 2021–2023

The foundation of Alma Media’s strategy is built on the digital transformation of the core business, growth through digital business, and internationalisation.

Alma Media has identified four strategic focus areas with respect to its existing businesses: 1) audience acquisition, engagement & monetization 2) marketing solutions, 3) co-operation for larger scale 4) the commercialisation of data.

In addition to organic growth, Alma Media actively seeks new business opportunities through acquisitions. The Group is growing and diversifying its product portfolio by expanding from media to marketplace business and digital services. The Group will continue the internationalisation of the recruitment business, focusing on Eastern Europe and the Balkans. The COVID-19 pandemic has accelerated the ongoing digitalisation process and increased the demand for related services and solutions. The change presents new digital business opportunities in the areas such as the subscription business, housing and property transactions, online professional training and online buying.

For further information, please contact: Juha Nuutinen, CFO, Alma Media, +358 10 665 3873

Alma Media in brief

Alma Media is a dynamic digital service business and media company with a strong capacity for renewal. The company’s best-known brands are Kauppalehti, Talouselämä, Iltalehti, Etuovi.com and Monster. Alma Media builds sustainable growth expanding its offering from media to related digital services fulfilling the needs of users’ everyday life as consumers and as professionals in business. Alma Media operates in 11 countries in Europe. Alma Media employs approximately 1,500 professionals. Alma Media’s revenue from continuing operations was EUR 230.2 million in 2020. Alma Media’s share is listed on NASDAQ Helsinki. Read more at www.almamedia.com 

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