Alma Media’s Interim Report January–September 2015: Operating profit excluding non-recurring items increased in the third quarter

Alma Media Corporation               Interim Report                     23 October 2015 at 9:00 a.m. (EEST)

Alma Media’s Interim Report January–September 2015:


Financial performance July–September 2015:

– Revenue was MEUR 68.0 (70.5), down 3.5%.

– Online sales increased by 9.5% to MEUR 24.2 (22.1).

– EBITDA (Earnings before interest, taxes, depreciation and amortisation) excluding

non-recurring items MEUR 11.0 (10.4), up 5.7%.

– EBITDA was MEUR 10.8 (9.9), up 9.5%.

– Operating profit excluding non-recurring items was MEUR 7.6 (7.0) or 11.1% (9.9%) of revenue, up 8.2%.

– Operating profit MEUR 6.0 (6.5) or 8.8% (9.2%) of revenue, down 7.5%.

– Profit for the period was MEUR 3.7 (4.8), down 23.2%.

– The operating profit for July–September includes non-recurring items of MEUR -1.6 (-0.5).

– Earnings per share EUR 0.04 (0.06).

Financial performance in January–September 2015:

– Revenue was MEUR 212.9 (218.8), down 2.7%.

– Online sales increased by 5.9% to MEUR 73.6 (69.6).

– EBITDA (Earnings before interest, taxes, depreciation and amortisation) excluding

non-recurring items MEUR 26.6 (26.2), up 1.4%.

– EBITDA was MEUR 28.4 (26.2), up 8.4%.

– Operating profit excluding non-recurring items was MEUR 16.3 (15.8) or 7.7% (7.2%) of revenue, up 3.3%.

– Operating profit MEUR 16.8 (15.8), or 7.9% (7.2%) of revenue, up 6.1%.

– Profit for the period was MEUR 11.8 (11.7), up 1.2%.

– The operating profit for January–September includes non-recurring items of MEUR 0.5 (0.0).

– Earnings per share EUR 0.13 (0.14).

KEY FIGURES 2015 2014 Change 2015 2014 Change 2014
MEUR Q3 Q3 % Q1–Q3 Q1–Q3 % Q1–Q4
Revenue 68.0 70.5 -2.5 -3.5 212.9 218.8 -5.9 -2.7 295.4
Content revenue 25.3 28.0 -2.7 -9.7 75.4 82.4 -7.0 -8.5 110.1
       Content revenue, print 23.8 26.6 -2.9 -10.8 70.8 78.4 -7.7 -9.8 104.6
       Content revenue, online 1.6 1.4 0.2 11.1 4.7 4.0 0.7 17.3 5.6
Advertising revenue 33.1 33.5 -0.4 -1.2 106.3 107.8 -1.5 -1.4 146.4
       Advertising revenue, print 14.0 16.3 -2.3 -14.3 48.6 53.9 -5.4 -10.0 73.7
       Advertising revenue, online 19.1 17.2 1.9 11.2 57.7 53.8 4.0 7.5 72.7
Service revenue 9.6 8.9 0.7 7.5 31.2 28.6 2.6 9.1 38.8
Total expenses excluding non-recurring items 60.6 63.5 -2.9 -4.5 197.0 203.4 -6.4 -3.1 274.6
EBITDA excluding non-recurring items 11.0 10.4 0.6 5.7 26.6 26.2 0.4 1.4 35.1
EBITDA 10.8 9.9 0.9 9.5 28.4 26.2 2.2 8.4 36.4
Operating profit excluding non-recurring items 7.6 7.0 0.6 8.2 16.3 15.8 0.5 3.3 21.4
% of revenue 11.1 9.9 7.7 7.2 7.2
Operating profit (loss) 6.0 6.5 -0.5 -7.5 16.8 15.8 1.0 6.1 20.7
% of revenue 8.8 9.2 7.9 7.2 7.0
Profit for the period 3.7 4.8 -0.8 -23.2 11.8 11.7 0.1 1.2 15.7
Earnings per share, EUR (basic) 0.04 0.06 -0.02 -28.4 0.13 0.14 0.00 -1.9 0.19
Earnings per share, EUR (diluted) 0.04 0.06 -0.02 -28.4 0.13 0.14 0.00 -1.9 0.19
Online sales 24.2 22.1 2.1 9.5 73.6 69.6 4.1 5.9 94.5
Online sales, % of revenue 35.6 31.4 34.6 31.8 32.0

Outlook for 2015:

Low interest rates, a weaker euro and lower oil price improve the chances for growth in the long run. However, in 2015, economic growth is still expected to remain weak in Europe and, in particular, in Finland. The weak economic development has an impact on advertising volume, which is not expected to increase in Finland in 2015.

Alma Media expects its revenue to decrease in 2015 and operating profit excluding non-recurring items to remain unchanged or decrease from the 2014 level. The full-year revenue 2014 was MEUR 295.4, and operating profit excluding non-recurring items was MEUR 21.4.

Kai Telanne, President and CEO:

Alma Media’s third quarter 2015 was in line with our expectations. The Group’s revenue decreased by 3.5% to MEUR 68, which was primarily due to divestments. Operating profit excluding non-recurring items increased by 8% year-on-year to MEUR 7.6. Alma Media has focused on the growth and development of digital products and services. In the third quarter, they grew to account for 35 per cent of Group revenue. The Group’s relative profitability has improved as a result of streamlining operations, implementing operational changes and divesting unprofitable businesses. Alma Media’s goal remains to accelerate its growth in digital services and media.

In July–September, Finland’s subdued economic development and the weak advertising market posed challenges to Alma Media’s domestic units. However, foreign operations continued to achieve good results with their share of Group revenue increasing to 16 per cent. In particular, the growth of the national economies of Eastern Central Europe and active labour markets in the region supported the growth of Alma Media’s digital recruitment service business. The recruitment business grew by nearly 27% in the third quarter and its profitability was at a good level. The domestic marketplaces business maintained its revenue at the previous year’s level and its profitability improved as a result of cost savings.

As in the previous quarter, the growth of the Financial Media and Business Services segment was attributable particularly to JM Tieto, which builds marketing and sales concepts for B2B companies. The business unit’s profitability was at the same level as in the previous year in spite of the challenging domestic market situation. The customer media and content marketing provider Alma 360 was sold to Otavamedia at the beginning of October. The decision to divest the business was based on a reassessment of the segment’s business priorities and refocusing its operations.

Revenue continued to decline in the National Consumer Media segment, particularly in print media. However, the decline in digital advertising revenue slowed and there were positive signs in mobile advertising. The decrease in profitability slowed down compared to the first two quarters, particularly as volume-linked printing and distribution costs as well as content acquisition costs declined.

In the Regional Media segment, profitability remained at the previous year’s level thanks to streamlining measures in publishing operations and the improved efficiency of the printing facility. The Group has decided to continue to implement measures to enhance operational efficiency, as the segment’s profit performance has declined substantially in recent years due to the decline in revenue significantly outpacing the reduction in costs.

During the review period, Alma Media renewed its Group-level media sales model in order to improve its competitiveness and agility in the shifting media sector landscape. A centralised operating model enables the realisation of new Alma-level products and customer-specific, unique solutions especially in digital format. Buying Finland’s best media solutions will become easier, faster and more flexible for customers.

Alma Media’s financial position has strengthened further. The equity ratio was 45% at the end of September, and the gearing ratio was at a good level at under 60%. This provides a solid foundation for continued investments in growth and internationalisation.

The most significant event for Alma Media during the review period—and major news for the Finnish media sector as a whole—was Alma Media’s and Talentum’s announcement of the combination of the companies, and Alma Media’s subsequent exchange offer for all of Talentum’s issued shares and option rights. The combination of the companies is aimed at strengthening the competitiveness of Finnish decision-maker media and ensuring the future of high-quality business journalism as well as information and business services against the backdrop of intensifying global competition and Finland’s economic situation, which appears likely to remain weak. The multichannel media company created by the combination will be in an excellent position to develop increasingly diverse services for attractive target groups as well as more profitable business.

For more information, please contact:

Kai Telanne, President and CEO, telephone +358 10 665 3500

Juha Nuutinen, CFO, telephone +358 10 665 3873

Conference, webcast and conference call:

A conference for Finnish media, investors and analysts will be held on the same day at 11.00–12.00 EEST in the Alma House (address: Alvar Aallon katu 3 C, Helsinki). In addition to the presentations held by President & CEO Kai Telanne and CFO Juha Nuutinen, participants will have an opportunity to discuss with other members of the company's management. Please note that the conference will be held in Finnish. The presentation material in English will be available on at 11.00 EEST.

To participate in the conference, kindly register beforehand by e-mail,

An international conference call and audio webcast concerning the financial result of January-September 2015 will begin at 13.00 EEST. You can participate in the conference by calling + 44(0)20 3427 1908 (confirmation code: 9806947) or follow the direct transmission at


Board of Directors

Distribution: NASDAQ OMX Helsinki, main media,

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

  • Date: 23.10.2015, 09:00
  • News type: Stock exchange release

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