Alma Media - Interim report (Q1 and Q3)

Alma Media Interim Report January—March 2024: Revenue on a par with the comparison period, supported by acquisitions. Adjusted operating profit decreased by 5.2% in an uncertain operating environment

Alma Media Corporation   Interim Report             19 April 2024 at 8.00 a.m.

ALMA MEDIA'S INTERIM REPORT JANUARY—MARCH 2024:
Revenue on a par with the comparison period, supported by acquisitions. Adjusted
operating profit decreased by 5.2% in an uncertain operating environment.

Financial performance January—March 2024:

  · Revenue MEUR 76.2 (75.3), +1.2%.
  · The share of digital business was 82.9% (81.8%) of revenue.
  · Adjusted operating profit MEUR 16.1 (17.0), down 5.2%, 21.2% (22.6%) of
revenue.
  · Operating profit MEUR 15.0 (16.5), down 9.1%.
  · Alma Career: In local currencies, revenue on a par with the comparison
period.
  · Alma Marketplaces: Acquisitions supported revenue growth. Profitability
decreased in housing-related services due to product development investments and
the subdued housing market.
  · Alma News Media: Adjusted operating profit increased due to cost control
measures.
  · Earnings per share were EUR 0.13 (0.14).

Key figures
MEUR                                      2024  2023  Change  2023
                                          Q1    Q1    %       Q1-Q4
Revenue                                   76.2  75.3  1.2     304.9
  Classified                              30.2  30.7  -1.6    122.4
  Advertising                             14.7  15.7  -6.4    64.9
  Digital services                        13.0  10.5  24.5    43.9
  Content                                 12.6  12.5  0.8     50.5
  Other                                   5.6   5.9   -4.6    23.2
Digital business revenue                  63.1  61.6  2.5     251.2
  Digital business, % of         revenue  82.9  81.8          82.4
Adjusted total expenses                   60.1  58.3  3.1     231.8
Adjusted EBITDA                           20.2  21.3  -4.9    91.0
EBITDA                                    19.1  20.7  -8.0    90.6
Adjusted operating profit                 16.1  17.0  -5.2    73.6
  % of revenue                            21.2  22.6          24.1
Operating profit/loss                     15.0  16.5  -9.1    73.0
  % of revenue                            19.7  21.9          23.9
Profit for the period before tax          13.6  14.6  -6.9    68.5
Profit for the period                     10.8  11.7  -7.3    56.4

New segment structure

Alma Media's revised segment structure took effect on 1 March 2024. Alma Media
also revised its revenue reporting. Going forward, revenue will be divided into
the following categories: classified advertising, advertising, digital services,
content and other sales.

Alma Media's business segments are Alma Career, Alma Marketplaces and Alma News
Media.

On 4 April 2024, Alma Media published comparison data under the new segment
structure, and the revised distribution of revenue for each quarter and for the
full financial year January—December 2023. The reporting in this interim report
reflects the new segment structure and revised distribution of revenue.

CEO's review:

Continued investments in a subdued operating environment

Alma Media's business developed well in the first quarter in spite of the
subdued operating environment. Revenue was on a par with the comparison period
at MEUR 76.2. Revenue was supported by acquisitions, but the weakened exchange
rate of the Czech koruna dampened revenue performance. Revenue from classified
advertising increased year-on-year (+1.0%) in local currencies.

Revenue from advertising decreased by 6.4% to MEUR 14.7. Adjusted operating
profit decreased by 5.2% to MEUR 16.1 and was 21.2% of revenue. Profitability
was weighed down by investments in service development, particularly in housing
-related services in the Marketplaces segment, as well as increased ICT
expenses.

This is the first report to use the segment structure and revised revenue
distribution that took effect on 1 March 2024.

Our business segments are now Alma Career, Alma Marketplaces and Alma News Media

In the Alma Career segment, revenue decreased by 2.7% and amounted to MEUR 26.9.
Adjusted operating profit decreased by 5.8% to MEUR 10.4 and was 38.7% of
revenue. Due to the Czech koruna having been exceptionally strong in
the comparison period, approximately MEUR 1 of the decrease in revenue was
attributable to exchange rates.

There were significant differences in the labour market cycle between Alma
Career's operating countries. Among the significant operating countries, the
situation was fairly good in the Czech Republic, and the dynamic recruitment
markets in Slovakia and Croatia continued to be driven by the high level of
activity among workers, intense competition for skilled labour and low
unemployment. At the same time, the cyclical conditions remained very
challenging in the Baltic countries and Finland.

The Alma Marketplaces segment's revenue increased by 10.5% in the first quarter
and amounted to MEUR 22.9. Adjusted operating profit decreased by 11.1% to MEUR
5.8 and was 25.5% of revenue. In the Insights business, growth of 22% was
achieved in continuously invoiced services. The negative impacts of the housing
market have begun to have a delayed effect on the revenue of housing-related
services.

The segment's expenses increased by almost 20% due to acquisitions. In spite of
the challenging market conditions, we continued to purposefully implement our
development projects, particularly in digital services related to the
automotive and housing verticals, as well as other key projects related to
transactional commerce.

In the Alma News Media segment, revenue decreased by 2.9% to MEUR 26.4, but
adjusted operating profit increased by 11.2% to MEUR 2.6 in the first quarter.
Active cost control measures led to expenses decreasing by 4.3% and
adjusted operating profit increasing to 9.7% (8.5%) of revenue.

The economic cycle is challenging for Finnish media, and there has been no
recovery in spite of the temporary boost caused by the presidential elections.

Nevertheless, there was high general interest in the news. The development of
targeted and personalised content saw the paid Iltalehti Plus service increase
its number of subscribers to roughly 52,000. The strong digital transformation
continued, with the share of digital business rising to over 56% of revenue. In
direct marketing, strong growth was achieved in terms of both revenue and
operating profit.

Alma Media is in a good position

We have a strong financial position. Our gearing at the end of the year stood at
59.8% and our equity ratio was 46.3%.

Our digital business models are cost-efficient and scalable, and they have
enabled us to expand our role in our customers' value chains in our key business
areas.

The acquisition of Netwheels during the reporting period complements Alma
Media's automotive and mobility services for business customers. The acquisition
will contribute to the development of the marketplace and systems business
by streamlining the purchase and sales processes of vehicles and by offering
digital solutions to car retailers, importers, financing companies, application
developers and other operators in the automotive sector.

With cooperation and unique competitive advantage we have created an entity
which encompasses a culture of growth and strong expertise and at the same time
serve as the foundation for future growth.

Kai Telanne

President and CEO

Operating environment

In its most recent economic forecast, the European Commission projected economic
growth of 0.9% in the EU for 2024. The Commission further expects inflation to
slow from 6.3% to 3.0% in 2024. The Commission's forecast for the inflation rate
in Finland in 2024 is 1.4%.

Economic growth is hindered by a number of factors, such as the weakening of
household purchasing power and increased interest rates. If the European Central
Bank cuts its key interest rates in the latter part of the year as expected,
this could improve the overall economic picture, support consumer confidence and
have a positive impact on the market for durable consumer goods in the
automotive and housing sectors, for example.

The employment rate in the EU reached a record-high level in the second quarter
of 2023, and the Commission expects the employment rate to remain stable in
2024. In spite of the strong employment situation, the number of job vacancies
has stayed fairly high, and there have been labour shortages in the service
sector and manufacturing in particular.

Economic growth in Finland is falling substantially behind the rest of the EU.
The Commission's economic growth projection for Finland in 2024 is 0.6%. In
addition to Finland, Alma Media's main markets are the Czech Republic and
Slovakia in Eastern Central Europe, and Croatia in Southern Europe. The
Commission projects that, in 2024, the GDP growth rate will be 1.1% in the Czech
Republic, 2.3% in Slovakia and 2.6% in Croatia. The Commission's forecasts of
the unemployment rate in 2024 are 2.5% for the Czech Republic, 5.4% for
Slovakia, 6.2% for Croatia and 7.3% for Finland.

Outlook for 2024

Alma Media expects its full-year revenue and adjusted operating profit of 2024
to remain at the 2023 level. The full-year revenue for 2023 was MEUR 304.9 and
the adjusted operating profit was MEUR 73.6.

Background for the outlook

The outlook is based on an estimate that there will be no material changes to
the prevailing situation in the company's main market areas. In the countries
where the company operates, forecasts for national economies have been updated
downwards due to weak development in the early part of the year, which is also
reflected in the development of the recruitment market. In Finland, demand and
employment are expected to weaken, and there is continued uncertainty around
advertising.

Acquisitions will increase the company's revenue and operating profit. The
diversification of the Group's business activities between multiple geographical
markets and business areas, and purposeful cost control, stabilise the company's
outlook even in challenging market conditions.

Market situation in the main markets in Finland

Market development in the automotive industry

According to statistics provided by the Finnish Information Centre of Automobile
Sector, first registrations of new passenger cars in Finland decreased by 12%
year-on-year in January—March. Battery electric vehicles accounted for 26% of
first registrations. Used car sales recovered in Q1 as was the case in the
preceding quarter. The sales volume for used cars increased by 3.5% year-on
-year.

Market development in housing

According to the Central Federation of Finnish Real Estate Agencies, the housing
market remained weak in the first quarter: the total volume of housing
transactions fell by 14.2% year-on-year. The transaction volume for old
dwellings was 34% below the average for the past five years, and the transaction
volume for new dwellings was 83% lower than the five-year average.

Market development in the media business

According to Kantar TNS, the total media advertising volume in January—February
2024 was on a par with the comparison period. In February, the sectors with the
highest increases in media advertising were cosmetics,
telecommunication services, pharmaceuticals, and tourism and transport. The
sectors with the steepest decreases in advertising were construction, clothing
and apparel, oil and energy, and financial services. Job advertising decreased
by 38.1% in February and classified advertising by 18.1% year-on-year.

In terms of volume, the market for afternoon papers declined by 7% in the first
quarter.

News conference and live webcast

An analyst and investor webcast will be held in English by President & CEO Kai
Telanne and CFO Taru Lehtinen at 11.00-12.00.

The conference will be held in the Alma House (address: Alvar Aallon katu 3 C,
Helsinki). To participate in the conference in Alma House, we kindly ask you to
register beforehand by e-mail to: kutsut@almamedia.fi.

The live webcast can be followed via https://almamedia.videosync.fi/q1
-2024/register. Questions can be asked through the webcast chat function.

An on-demand version of the webcast and the presentation material will be
available on the company's website on the same day
www.almamedia.fi/en/investors/reports-and-presentations/presentations.

Alma Media's financial calendar 2024

  · Interim Report for January-June 2024 on Thursday, 18 July 2024, at
approximately 8:00 EET
  · Interim Report for January-September 2024 on Friday, 18 October 2024 at
approximately 8:00 EET

ALMA MEDIA CORPORATION

Board of Directors

Distribution: NASDAQ Helsinki, main media,
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Alma Media in brief

Alma Media is an international company of digital media, marketplaces and
services with a strong capacity for renewal. We inspire human curiosity and
choice by creating services that combine technology and content with a local
heart. In Finland, our best-known brands include Kauppalehti, Talouselämä,
Iltalehti, Jobly, Etuovi.com, Nettiauto and Nettimoto. Our recruitment services
include prace.cz and jobs.cz in the Czech Republic, Profesia.sk in Slovakia and
mojposao.net in Croatia.

In Finland, our business operations include leading housing and automotive
marketplaces, financial and professional media, national consumer media and
content and data services for businesses and professionals. Alma Media's
international business in Eastern Central Europe, Sweden and the Baltic
countries consists of recruitment services and an online marketplace for
commercial properties.

Alma Media operates in 12 countries in Europe and employs approximately 1,700
professionals. Alma Media's revenue from continuing operations was EUR 305
million in 2023 of which the share of digital business was 82%. Alma Media's
share is listed on NASDAQ Helsinki. Read more at www.almamedia.fi/en/.

Attachments:

AlmaMediaCorporation_InterimReport_Q12024.pdf