ALMA MEDIA ACQUIRES 30,8 % OF TALENTUM FOR MFIM 328
ALMA MEDIA CORP. STOCK EXCh. RELEASE 20 MARCH 2001, 6.55 PM (EET)1/3
ALMA MEDIA ACQUIRES 30,8 % OF TALENTUM FOR MFIM 328
Alma Media has raised its holding in Talentum Oyj, a public company
listed on the Helsinki Exchanges, to 30,8 %. The companies have wide
potential for co-operation in business information, b-to-b
advertising and new media. Alma Media paid MFIM xx for its new
Alma Media has acquired 30.8 % of Talentum Oyj, a publishing,
Internet and new-media services and direct marketing company listed
on the Helsinki Exchanges. The sellers were mainly foreign and
domestic institutional investors.
Talentums consolidated net sales in 2000 were MFIM 697, up 11.9 % %)
on the previous year. The company reported a consolidated operating
profit of MFIM 51, which included extraordinary items totalling MFIM
136. The group has more than one thousand employees. The companys
principal shareholders after Alma Media are Suomen Lakimiesliitto 9.3
%, Insinööriliitto Il ry 5.5 %, Suomen Ekonomiliitto-SEFE and
Aimonoke Oy (total) 5.2 %, and Tekniikan Akateemiset ry and Diatieto
Oy (total) 5.2 %.
Talentums revenues from publishing activities last year totalled
approximately MFIM 318 and the operating profit was MFIM 30.
Publishing activities include Talentum Oyjs magazine publishing, and
the book publishing and training activities of the former Kauppakaari
group. After the merger of Talentum and Kauppakaari, Talentums
publishing activities have comprised business and information
technology publications, and law, business and information technology
books. Talentums best known publications are the business monthly
Talouselämä (Business Life) and Tekniikka & Talous (Technology and
Business). The group publishes altogether nine magazines and
Talentums Internet and new-media activities include the Internet
consulting company Satama Interactive Oyj and WOW-verkkobrandit Oy,
which concentrates on online content. Online activities accounted for
24.1 % of Talentums consolidated net sales in 2000.
Net sales from online activities totalled MFIM 192, up 110 % on the
previous year. This figure includes intragroup sales of FIM 24
million. The operating profit was MFIM 8 million, which included non-
recurring items (net) totalling MFIM 171.
Talentum Oyj owns 62.1 % of Satama Interactive Oy, which is listed on
the NM (New Market) list of the Helsinki Exchanges. Apart from
Finland Satama Interactive also operated in Sweden, Great Britain,
Germany, the Netherlands and the USA during 2000.
Net sales of the Satama Interactive Oyj group totalled MFIM 179, an
increase of 114.6 %. Its consolidated result before taxes and
extraordinary items was a loss of MFIM 111, which included a MEUR 1.9
provision for restructuring measures in Great Britain and the USA.
Satama Interactive groups operations in Finland were profitable. The
losses were due to the slower than planned integration of its foreign
operations and, above all, to local difficulties experienced by its
office in the USA.
Talentum groups direct marketing activities comprise the operations
of Suoramarkkinointi Mega Oy. Direct marketing accounted for 2.8 % of
Talentums consolidated net sales. Most of Suoramarkkinointi Mega
Oys business comprised telemarketing. Mega operates in 12 localities
in Finland, and through a local franchising partner in a further five
localities in the Baltic countries.
Suoramarkkinointi Mega Oys net sales increased 13.7 % and totalled
MFIM 35. The operating profit before goodwill amortization was MFIM
Talentum Oyj forecast a positive result for 2001 in its financial
statements bulletin published on 15 February 2001.
Satama Interactive Oyjs forecast in its financial statements
bulletin dated 15 February was as follows:
Satama has a solid financial standing and the company will not need
additional financing during this year in implementing its defined
strategy. Satama will focus on improving profitability during 2001.
Nevertheless, the year 2001 will be loss-making. The year 2002 will
beprofitable. The measures taken in the USA and the UK will have a
positive impact on profitability but on the other hand they will
lowerrevenues in the short term. Because of these actions revenues
during the first quarter will be approximately on the level of the
quarter of 2000.
According to Alma Medias CEO, Mr Matti Packalén, this acquisition
signifies a long-term investment in a good company. "We were offered
Talentum Oyjs shares by investment brokers. We have been discussing
co-operation with Talentums top management for years and have mapped
out various forms of co-operation that would benefit both parties,"
Mr Packalén commented. "We already work together in many areas;
indeed, Talentum is one of Alma Medias largest customers for
printing services," he added.
Natural areas for co-operation include the production and
distribution of business information and b-to-b marketing, Mr
Packalén said. Further potential for co-operation exists, for example
in various new-media projects and television broadcasting because
a 47.5 % stake in Varesvuo Partners Oy, which produces television
In the short term the share acquisition will increase Alma Medias
goodwill amortization by approximately MFIM 10 per year over a 20-
year amortization period. However, the synergistic benefits to be
derived from the new co-operation will exceed this figure
significantly over in the years ahead.
ALMA MEDIA CORPORATION
Vice President, Corporate Communications and Investor Relations
Further information: President and CEO Matti Packalen. tel. + 358 9
Distribution: Helsinki Exchanges, Principal Media