2009-07-23 07:59:00 CEST
2009-07-23 08:00:54 CEST
REGULATED INFORMATION
Alma Media - Interim report (Q1 and Q3)
Alma Media Corporation's Interim Report: Operating profit weakened as expected, profitability good in view of market conditions
Alma Media Corporation Interim Report July 23, 2009 at 9:00AM (EET)
ALMA MEDIA CORPORATION'S INTERIM REPORT FOR JANUARY-JUNE 2009:
Operating profit weakened as expected, profitability good in view of
market conditions
April-June 2009 in brief:
- Net sales MEUR 79.3 (89.3), down 11.2%.
- Operating profit MEUR 11.9 (15.0), 15.1% (16.8%) of net sales.
- Operating profit without one-time capital gains MEUR 12.2 (14.4),
down 15.3%
- Profit before taxes MEUR 11.5 (15.7), profit before taxes without
one-time capital gains MEUR 11.8 (15.1).
- Financial result for the period MEUR 8.3 (11.8), down 29.9%.
- Earnings per share EUR 0.11 (0.16).
Outlook for 2009:
- Alma Media expects that the comparable net sales and operating
profit will be lower than in 2008 due to the decline in media
advertising. In the third quarter, net sales and operating profit
will fall behind the comparison period in 2008.
Kai Telanne, President and CEO:
The weakness in the advertising market continued in the second
quarter. The steep drop from the comparison period in 2008 in the
first quarter levelled during the second quarter. The advertising
sales market in newspapers steadied at a level approximately
one-fifth lower than in the previous year, which naturally decreased
Alma Media's net sales and operating profit compared with the second
quarter in the previous year. A significant part of the drop is
attributable to nationwide advertising. Many of our newspapers,
however, showed remarkable performance in local advertising sales,
which on average stayed at the same level as in 2008. Advertising
sales for the newspapers' online
services continued to grow well.
No significant changes took place in the circulation of our
newspapers. The readership has remained at a good level. Our online
services have managed to further increase their market share. We will
continue the development of the combination of printed newspapers and
online services according to strategy.
The savings measures initiated at business units in the beginning of
the year progressed according to plan during the second quarter.
Considering the market conditions, the results were good.
Alma Media's financial position is excellent. We will continue
product development, business development and the charting of
possible acquisitions according to strategy.
More information:
Kai Telanne, President and CEO, telephone +358 10 665 3500
Tuomas Itkonen, CFO, telephone +358 10 665 2244
Conference, webcast and conference call:
The company will hold a conference for analysts, investors and the
media in Finnish in the "Carl" conference room of the Scandic Marski
hotel at the
address Mannerheimintie 10, Helsinki on July 23, 2009 from 11:00am to
12:00noon. The material for the event will be available on the
internet at www.almamedia.fi/calendar beginning 11:00am.
A webcast and conference call in English will start on July 23, 2009
at 1:30pm. You can participate by navigating to
https://www.livemeeting.com/cc/almamedia/
join and telephoning the number given on the registration page. For
more detailed instructions on participation, see
www.almamedia.fi/calendar. The webcast will use Microsoft Live
Meeting technology.
Rauno Heinonen
Vice President Corporation Communications and IR
Alma Media Corporation
DISTRIBUTION
NASDAQ OMX Helsinki
Principal media
ALMA MEDIA CORPORATION'S INTERIM REPORT JANUARY 1-JUNE 30, 2009
The figures are compared in accordance with the International
Financial Reporting Standards (IFRS) with those of the corresponding
period in 2008, unless otherwise stated. The figures are unaudited.
The figures in the tables are independently rounded.
KEY FIGURES
2009 2008 Change 2009 2008 Change 2008 2007
MEUR 4-6 4-6 % 1-6 1-6 % 1-12 1-12
Net sales 79.3 89.3 -11.2 155.8 173.2 -10.1 341.2 328.9
Operating profit 11.9 15.0 -20.3 18.5 26.6 -30.6 48.3 64.4
% of net sales 15.1 16.8 11.8 15.4 14.2 19.6
Operating profit
without
one-time items 12.2 14.4 -15.3 19.7 26.0 -24.2 47.7 52.9
% of net sales 15.3 16.1 12.6 15.0 14.0 16.1
Return on Equity/ROE
(Annually)* 52.6 92.3 33.4 50.2 37.7 43.8
Return on Invest/ROI
(Annually)* 38.3 57.7 28.7 42.9 34.8 39.9
Net financial
expenses 0.0 0.1 -100.0 0.1 -0.2 150.0 0.4 -0.1
Net financial
expenses,
% of net sales 0.0 0.1 0.1 -0.1 0.1 0.0
Share of associated
companies' results -0.4 0.8 -150.2 -0.3 1.8 -115.6 4.5 3.5
Balance sheet total 156.0 170.3 -7.8 166.9 181.3
Gross capital
expenditure 1.4 3.9 -64.1 3.0 10.1 -70.3 14.5 12.1
Gross capital
expenditure, % of
net
sales 1.8 4.3 1.9 5.8 4.2 3.7
Equity ratio 58.4 48.5 57.2 69.8
Gearing, % 0.4 33.2 6.5 -15.2
Interest-bearing net
debt 0.3 23.9 -98.7 5.8 -17.9
Interest-bearing
liabilities 14.7 32.4 -54.6 19.1 6.8
Non-interest-bearing
liabilities 63.3 66.0 -4.1 59.3 56.2
Average no. of
personnel,
calculated as
full-time
employees, excl.
delivery staff 1,930 1,993 -3.2 1,932 1,962 -1.5 1,981 1,971
Average no. of
delivery
staff 998 980 1.8 968 959 0.9 968 962
Earnings/share, EUR
(basic) 0.11 0.16 -25.0 0.17 0.28 -35.7 0.51 0.68
Earnings/share, EUR
(diluted) 0.11 0.16 -25.0 0.17 0.28 -35.7 0.51 0.68
Cash flow from
operating
activities, EUR 0.05 0.08 -37.5 0.40 0.44 -9.1 0.63 0.70
Shareholders'
equity/share, EUR 1.05 0.96 9.4 1.18 1.58
Market
capitalization 362.6 643.2 -43.7 369.3 870.7
Average no. of
shares
(1.000 shares)
- basic 74,613 74,613 74,613 74,613 74,613 74,613
- diluted 74,613 74,770 74,613 74,796 74,764 74,773
No. of shares at end
of
period
(1.000 shares) 74,613 74,613 74,613 74,613 74,613 74,613
*ref. Main accounting principles of Interim Report
GROUP NET SALES AND RESULT APRIL-JUNE 2009
During the review period, Alma Media's net sales declined 11.2% from
the corresponding period in the previous year, being MEUR 79.3
(89.3).
The operating profit declined to MEUR 11.9 (15.0), 15.1% (16.8%) of
net sales. The second-quarter operating profit includes one-time
capital gains of MEUR -0.2 (0.6).
GROUP NET SALES AND RESULT JANUARY-JUNE 2009
The Group's net sales from January to June 2009 totalled MEUR 155.8
(173.2). The share of the online business was 13.3% (13.2%) of
consolidated net sales, MEUR 20.6 (23.0). The operating profit
amounted to MEUR 6.5 (11.6). The comparable operating profit for the
first half-year was MEUR 19.7 (26.0), down 24.2% from the comparison
period in the previous year.
The operating profit includes one-time items in the amount of MEUR
-1.2 (0.6). The one-time items in the current year are reorganisation
costs due to savings measures. As the result of statutory personnel
negotiations and other turnover, Alma Media's number of personnel
declined by 49 employees in the first half-year. The one-time profit
from sales in the comparison period is from the sale of real estate.
Net sales of the Newspapers segment were MEUR 111.0 (118.5). Net
sales of the segment's advertising sales declined 13.8% from the
comparison period. Circulation net sales for Newspapers increased
slightly, supported by price increases. The comparable operating
profit for Newspapers was MEUR 18.8 (21.1).
Net sales of the Kauppalehti group were MEUR 32.3 (38.0). The
segment's advertising sales declined 28.3% from the comparison
period. Circulation sales declined 7.5%. The comparable operating
profit for the Kauppalehti group was MEUR 2.5 (5.1).
Net sales of the Marketplaces segment were MEUR 14.2 (18.4). The
comparable operating loss of Marketplaces was MEUR 0.4 (operating
profit of MEUR 2.0).
CHANGES IN GROUP STRUCTURE IN 2009
Alma Media's ownership in Kotikokki.net Oy has risen to 40% in June,
and this company will be reported as an associated company under the
Newspapers segment in the consolidated financial statements.
OUTLOOK FOR 2009
Uncertainty about the development of advertising sales will continue
in the third quarter and towards the end of the year 2009.
Alma Media expects the single-copy sales of afternoon papers to
continue their decline. The chargeable circulations of regional and
local papers, as well as Kauppalehti, are expected to stay neutral or
decline moderately. Advertising in newspapers and the online media is
expected to stay at a lower level than in the previous year also in
the second half-year.
Alma Media expects the full-year comparable net sales and operating
profit to decrease from the 2008 level as a result of the decline in
advertising sales. In the third quarter, net sales and operating
profit will fall behind the levels of Q3/2008.
MARKET CONDITIONS
The Finnish national economy declined rapidly in early 2009. In the
first quarter, the GNP weakened 7.5% from Q1/2008 according to the
Economic Bulletin of the Finnish Ministry of Finance. The GNP of
Finland is forecast to weaken 5-6% in 2009. According to preliminary
information by Statistics Finland, the output of the Finnish national
economy decreased 9.2% in April, compared with April 2008.
The decline in advertising sales that began towards the end of 2008
accelerated in the early part of 2009. According to TNS Media
Intelligence, advertising spending declined 19.4% in January-June
2009 and 19.8% in June in comparison with 2008. Advertising in
newspapers during the same periods declined 23.8% and 23.9%,
respectively. During the second quarter, advertising spending was
reduced by 19.6 % in all media groups together and 22.8 % in
newspapers.
During the second quarter, advertising in online media declined
according to TNS by 9.6 %. From the beginning of the year the decline
is 8.8 % compared to the previous years' first half.
Single-copy sales of afternoon papers declined 8.0% in January-June.
NET SALES AND OPERATING PROFIT BY SEGMENT
NET SALES AND OPERATING PROFIT AND LOSS BY SEGMENT
2009 2008 2009 2008 2008
NET SALES BY SEGMENT, MEUR Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec
Newspapers
External 56.0 60.1 108.8 116.2 232.2
Inter-segments 1.1 1.1 2.2 2.3 4.5
Newspapers total 57.1 61.2 111.0 118.5 236.7
Kauppalehti group
External 16.0 19.6 32.2 38.0 73.4
Inter-segments 0.1 0.0 0.1 0.0 0.1
Kauppalehti group total 16.0 19.5 32.3 38.0 73.5
Marketplaces
External 7.1 9.2 14.2 18.2 34.0
Inter-segments 0.0 0.1 0.0 0.2 0.3
Marketplace total 7.0 9.4 14.2 18.4 34.3
Others
External 0.3 0.4 0.7 0.8 1.6
Inter-segments 3.9 3.2 7.5 6.2 13.5
Others total 4.2 3.6 8.2 7.0 15.1
Elimination -5.0 -4.4 -9.9 -8.7 -18.4
Total 79.3 89.3 155.8 173.2 341.2
OPERATING PROFIT/LOSS BY 2009 2008 2009 2008 2008
SEGMENT, MEUR * Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec
Newspapers 11.1 11.8 18.0 21.1 41.5
Kauppalehti group 1.4 3.1 2.1 5.1 9.7
Marketplaces -0.2 0.9 -0.4 2.0 2.0
Other operations -0.3 -0.8 -1.2 -1.6 -4.9
Total 11.9 15.0 18.5 26.6 48.3
*) including one-time items
NEWSPAPERS
2009 2008 2009 2008 2008
Key figures, MEUR Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec
Net sales 57.1 61.2 111.0 118.5 236.7
Circulation sales 27.2 26.9 54.2 53.3 108.6
Media advertising
sales 27.3 31.5 51.7 60.0 117.7
Other sales 2.6 2.8 5.1 5.3 10.4
Operating profit 11.1 11.8 18.0 21.1 41.5
Operating margin, % 19.4 19.2 16.2 17.8 17.5
Operating profit
without one-time
items 11.2 11.8 18.8 21.1 41.5
Operating margin
without one-time
items, % 19.6 19.2 16.9 17.8 17.5
Average no. of
personnel,
calculated as
full-time
employees excl.
delivery staff 1 176 1210 1 164 1188 1 197
Average no. of
delivery staff 998 980 968 959 968
Operational key 2009 2008 2009 2008 2008
figures 4-6 4-6 1-6 1-6 1-12
Audited circulation
Iltalehti 122,548
Aamulehti 139,130
Online services,
unique visitors,
Weekly
Iltalehti.fi 1,695,372 1,357,835 1,702,838 1,327,961 1,412,534
Telkku.com 569,955 499,422 582,994 516,422 515,939
Aamulehti.fi 183,412 149,159 188,915 140,219 147,048
The Newspapers segment reports the publishing activities of 35
newspapers. The largest of the papers are Aamulehti and Iltalehti.
The second-quarter net sales for the Newspapers segment declined 6.7%
from the previous year, totalling MEUR 57.1. Advertising sales in
this segment declined MEUR 4.2 (-13.5%) during the second quarter of
2009. Aamulehti particularly suffered from this development. The
decline in sales did not worsen from the situation in the early part
of the year in the second quarter. Advertising sales for the online
services developed well throughout the segment.
Circulation net sales for Newspapers grew in the second quarter,
assisted by price increases. Circulation development for regional and
local papers remained neutral or in a slight decline. Iltalehti's
circulation decreased 3.2% while the entire afternoon paper market
declined 4.1%.
Cost savings have been realised according to business unit specific
plans. In the second quarter, savings have primarily encompassed
printing and distribution costs as well as personnel and marketing
costs. The production efficiency of printing houses has been good.
The Newspapers segment's second-quarter operating profit declined to
MEUR 11.1 (11.8). The segment's comparable operating profit was MEUR
11.2 (11.8).
Satakunnan Kirjateollisuus Oy sold its distribution business to
Aamujakelu Oy as a group internal transaction on June 1, 2009. The
deal will become effective on January 1, 2010. The distribution
operations of Satakunnan Kirjateollisuus Oy are responsible for the
early-morning distribution of Satakunnan Kansa and several other
newspapers.
KAUPPALEHTI GROUP
2009 2008 2009 2008 2008
Keu figures, MEUR Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec
Net sales 16.0 19.5 32.3 38.0 73.5
Circulation sales 5.6 6.3 11.6 12.5 24.8
Media advertising sales 4.0 5.8 8.3 11.6 22.2
Other sales 6.4 7.5 12.4 14.0 26.4
Operating profit 1.4 3.1 2.1 5.1 9.7
Operating margin, % 9.0 16.1 6.5 13.4 13.2
Operating profit without
one-time items 1.6 3.1 2.5 5.1 9.7
Operating margin without
one-time items, % 9.7 16.1 7.6 13.4 13.2
Average no. of personnel,
calculated as full-time 501 489
employees 490 499 499
2009 2008 2009 2008 2008
Operational key figures Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec
Audited circulation
Kauppalehti 86,654
Online services, unique
visitors, weekly
Kauppalehti.fi 537,302 366,292 540,683 357,585 391,453
The Kauppalehti Group specialises in the production of business and
financial information. Its best known title is Finland's leading
business paper, Kauppalehti. The group also includes the contract
publishing company Lehdentekijät, direct marketing company
Kauppalehti 121 and the news agency BNS that operates in the Baltic
countries.
The net sales of the Kauppalehti group declined 17.9% in the second
quarter of 2009, mainly due to the decline of Kauppalehti's
advertising sales by 33%, and was MEUR 16.0. Kauppalehti's
advertising sales is mainly affected by the reduced advertising by
financial and car sectors and overall decline of recruitment
advertising. The segment's circulation sales did not reach the
previous year's second-quarter level mainly due to the sales
development in contract publishing.
According to the TNS Päättäjä Atlas (Decision-maker Atlas) study,
Kauppalehti has risen to third position in the printed newspaper
category in the decision-maker target group. In the participant
target group, both Kauppalehti and in particular Kauppalehti.fi
succeeded in increasing their reach. In the entrepreneur target
group, Kauppalehti rose to the position of the newspaper with the
widest reach.
Market Information Services, part of the Kauppalehti group and
including ePortti, Kauppalehti.fi and the business operations of
Balance Consulting, continued to develop its content and increased
its net sales.
Programmes to implement the planned cost savings have advanced in all
business units of the Kauppalehti group. The most significant savings
have been achieved in printing and distribution costs, as well as
sales and marketing operations.
The second-quarter operating profit of the Kauppalehti group declined
MEUR 1.7 and was MEUR 1.4. The comparable operating profit for the
group was MEUR 1.6 (3.1).
MARKETPLACES
2009 2008 2009 2008 2008
Key figures, MEUR Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec
Net sales 7.0 9.4 14.2 18.4 34.3
Operations in Finland 5.9 7.6 12.0 15.1 28.0
Operations outside Finland 1.1 1.8 2.2 3.3 6.3
Operating profit -0.2 0.9 -0.4 2.0 2.0
Operating margin, % -3.2 9.4 -3.0 10.9 5.9
Operating profit without
one-time items -0.2 0.9 -0.4 2.0 2.0
Operating margin without
one-time items, % -3.2 9.4 -2.9 10.9 5.9
Average no. of personnel,
calculated as full-time
employees 202 211 216 205 216
2009 2008 2009 2008 2008
Operational key figures Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec
Online services, unique
visitors, weekly
Etuovi.com 348,487 319,636 350,077 323,029 321,176
Autotalli.com 92,106 91,336 96,705 95,641 91,744
Monster.fi 70,158 59,801 77,037 71,866 65,585
Mikko.fi 70,973 44,362 74,676 22,181 47,915
Mascus.com 118,392 66,888 122,972 63,961 80,679
City24 220,867 256,534 258,350 260,442 265,516
The Marketplaces segment reports classified services produced on the
internet and supported by printed products. The services in Finland
are Etuovi.com, Monster.fi, Autotalli.com, Mascus.fi and Mikko.fi.
The services outside Finland are City 24, Mascus and Bovision.
In the second quarter of 2009, the net sales of Marketplaces declined
25.0%. No significant changes in comparison with the first quarter
took place in the operating environment of Marketplaces. The
recruitment market in Finland continued to decline. The slight
cyclical upturn in the home sales and used vehicle markets did not
reflect markedly on the sales of the Etuovi.com and Autotalli.com
services.
Mascus, the marketplace for heavy machinery, has continued to expand
its operations into new countries. At the end of the second quarter,
Mascus operates in 29 countries on four continents.
The result of Marketplaces declined from an operating profit of MEUR
0.9 to an operating loss of MEUR 0.2 in the second quarter. The
figures for the segment do not include any significant one-time
capital items in the second quarter.
Alma Media has sold the auto sales portal Motors24 operating in
Estonia, Latvia and Lithuania. The sale did not have any significant
effect on the result of the segment.
ASSOCIATED COMPANIES
ASSOCIATED COMPANIES
Share of associated 2009 2008 2009 2008 2008
companies' results, MEUR Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec
Newspapers 0.0 0.1 0.0 0.1 0.1
Kauppalehti group
Talentum Oyj -0.6 0.6 -0.7 1.3 1.6
Marketplaces 0.0 0.0 0.0 0.0 0.0
Other operations
AP-Paino Oy 0.0 0.0 0.0 0.0 1.8
Other associated companies 0.2 0.2 0.4 0.4 0.9
Total -0.4 0.8 -0.3 1.8 4.5
The Group holds a 29.9 per cent stake in Talentum Oyj, which is
reported under the Kauppalehti group. The company's own shares in the
possession of Talentum are here included in the total number of
shares. In the consolidated financial statements of Alma Media the
own shares held by Talentum itself are not included in the total
number of shares. Alma Media's shareholding was stated as 30.3% in
its consolidated financial statements of June 30, 2009.
The corporation sold its ownership in AP-Paino Oy in December 2008.
BALANCE SHEET AND FINANCIAL POSITION
The consolidated balance sheet at the end of June 2009 stood at MEUR
156.0 (166.9 on December 31, 2008). The corporation's equity ratio at
the end of June was 58.4% (57.2% on December 31, 2008) and equity per
share was EUR 1.05 (1.18 on December 31, 2008).
The Group currently has a MEUR 100 commercial paper programme in
Finland under
which it is permitted to issue papers to a total amount of MEUR
0-100. The unused part of the programme was MEUR 90.7 on June 30,
2009.
The corporation's interest-bearing debt is denominated in euros and
therefore does not require hedging against exchange rate differences.
The most significant purchasing contracts denominated in foreign
currency are hedged.
The consolidated cash flow fell MEUR 1.7 behind the comparison
period, being MEUR 4.0. Cash flow before financing was MEUR 2.9
(2.5).
CAPITAL EXPENDITURE
The Alma Media Group's capital expenditure in April-June totalled
MEUR 1.4 (3.9). The expenditure comprised, besides normal operational
and replacement investments, the purchase of the shares in
Kotikokki.net Oy.
RISKS AND RISK MANAGEMENT
The purpose of Alma Media's risk management activities is to
continuously evaluate and manage all opportunities, threats and risks
in conjunction with the company's operations to enable the company to
reach its set objectives and to secure business continuity.
The risk management process identifies the risks, develops
appropriate risk management methods and regularly reports on risk
issues to the risk management organisation. Risk management is part
of Alma Media's internal audit function and thereby part of good
corporate governance. Written limits and processing methods are set
for quantitative and qualitative risks by the corporate risk
management system.
The most important strategic risks for Alma Media are a significant
drop in the readership of its newspapers and a decline in advertising
sales. Fluctuating economic cycles are reflected on the development
of advertising sales, which accounts for approximately half of the
corporation's net sales. Developing businesses outside Finland, such
as the Baltic countries and other East European countries, include
country-specific risks relating to market development and economic
growth.
In the long term, the media business will undergo changes along with
the changes in media consumption and technological developments. The
corporation's strategic objective is to meet this challenge through
renewal and the development of new business operations, particularly
in online media.
The most important operational risks are disturbances in information
technology systems and telecommunication, and an interruption of
printing operations.
ADMINISTRATION
Alma Media Corporation's ordinary annual general meeting held on
March 11, 2009 elected Lauri Helve, Matti Kavetvuo, Kai Seikku, Erkki
Solja, Kari Stadigh, Harri Suutari, Catharina Stackelberg-Hammarén
and Seppo Paatelainen members of the company's Board of Directors.
In its constitutive meeting held after the annual general meeting,
the Board of Directors elected Kari Stadigh its Chairman and Seppo
Paatelainen its Deputy Chairman. The Board also elected the members
of its committees. Kai Seikku, Erkki Solja, Catharina
Stackelberg-Hammarén and Harri Suutari were elected members of the
Audit Committee. Kari Stadigh, Seppo Paatelainen and Lauri Helve were
elected members of the Nomination and Remuneration Committee.
The annual general meeting elected the auditing firm Ernst & Young Oy
the company's auditor.
DIVIDENDS
In accordance with the proposal by the Board of Directors, the annual
general meeting decided to pay a dividend of EUR 0.30 per share for
the financial period 2008. Dividend payment date was March 25, 2009.
The dividends paid to the shareholders of the company in March
totalled MEUR 22.4.
In addition, the annual general meeting authorised the Board of
Directors to decide on distributing a maximum of EUR 0.20 per share
in additional dividends. The additional dividend may be distributed
in one lot or in several proportions. The total dividend for the 2008
financial year based on the authorisation may be no more than EUR
0.50 per share. The authorisation includes a right to the Board of
Directors to decide upon all other conditions pertaining to the
distribution of the dividend.
THE ALMA MEDIA SHARE
In April-June, altogether 2,679,832 Alma Media shares were traded at
NASDAQ OMX Helsinki Stock Exchange, representing 3.6% of the total
number of shares. The closing price of the Alma Media share at the
end of the last trading day of the review period, June 30, 2009, was
EUR 4.86. The lowest quotation during the review period was EUR 4.60
and the highest was EUR 5.90. Alma Media Corporation's market
capitalisation at the end of the review period was MEUR 362.6.
The company does not own any of its own shares. The annual general
meeting decided to authorise the Board of Directors to repurchase a
maximum of 3,730,600 of the company's shares, representing 5% of all
shares. The authorisation is valid until the closing of the next
ordinary general meeting.
Option rights
Option programme 2006
The Annual General Meeting of March 8, 2006 approved a three-stage
option programme (option rights 2006A, 2006B and 2006C), disapplying
the pre-emptive subscription right of the shareholders. Under the
programme, stock options may be granted to the managements of Alma
Media Corporation and its subsidiaries as incentives for ensuring
motivation and long-term commitment. Altogether 1,920,000 stock
options may be granted in three lots of 640,000 each, and these may
be exercised to subscribe to a maximum of 1,920,000 Alma Media
shares.
A total of 515,000 2006A options have been issued to Group
management. Altogether 75,000 of the 2006A options have been returned
to the company due to the termination of employment contracts. After
the returned options, Group management possesses a total of 440,000
2006A option rights. In 2007 and 2008, Alma Media's Board of
Directors decided to annul a total of 200,000 2006A option rights in
possession of the company. The option rights of the 2006A programme
are traded at NASDAQ OMX Helsinki Exchange since April 10, 2008.
In 2007, the Board of Directors of Alma Media decided to issue
515,000 options under the 2006B programme to Group management.
Altogether 50,000 of the 2006B options have been returned to the
company. Group management possesses a total of 465,000 2006B option
rights. All 175,000 2006B option rights in the possession of the
company have been annulled. The option rights of the 2006B programme
are traded at NASDAQ OMX Helsinki Exchange since April 1, 2009.
In 2008, the Board of Directors of Alma Media decided to issue
520,000 options under the 2006C programme to Group management.
Altogether 50,000 of the 2006C options have been returned to the
company, and Group management now possesses a total of 470,000 2006C
option rights. 170,000 2006C option rights have been annulled.
If all the subscription rights are exercised, the programme will
dilute the holdings of the earlier shareholders by 1.8%.
The share subscription periods and prices are:
2006A: April 1, 2008-April 30, 2010, average trade-weighted price
April 1-May 31, 2006
2006B: April 1, 2009-April 30, 2011, average trade-weighted price
April 1-May 31, 2007
2006C: April 1, 2010-April 30, 2012, average trade-weighted price
April 1-May 31, 2008
The subscription price of shares that may be subscribed under these
stock option rights will be reduced by the amount of dividends and
capital repayments decided after the start of the period determining
the subscription price and before the subscription of shares on the
settlement date for each dividend payment or capital repayment. The
share subscription price under the 2006A option is EUR 5.28 per
share, the subscription price under the 2006B option is EUR 8.65 and
the subscription price under the 2006C option is EUR 8.76,
correspondingly.
Option programme 2009
The annual general meeting of Alma Media on March 11, 2009 decided,
in accordance with the proposal by the Board of Directors, to
continue the incentive and commitment system for Alma Media
management through an option programme according to earlier
principles and decided to grant stock options to the key people of
Alma Media Corporation and its subsidiaries in the period 2009-2011.
Altogether 2,130,000 stock options may be granted, and these may be
exercised to subscribe to a maximum of 2,130,000 Alma Media shares,
either new or in possession of Alma Media.
The Board of Directors of Alma Media Corporation in May 2009 decided
to grant 640,000 option rights to corporate management under the
2009A programme. The company is in possession of 70,000 2009A
options. The subscription price of a 2009A option is EUR 5.21 per
share.
The granting of option rights is decided upon by the Board of
Directors. The shares subscribed on the basis of the option rights
now issued will constitute no more than 2.8% of all of the company's
shares and votes after a share subscription, in case new shares are
issued.
The share subscription periods and prices are:
2009A: April 1, 2012-March 31, 2014, average trade-weighted price
April 1-30, 2009
2009B: April 1, 2013-March 31, 2015, average trade-weighted price
April 1-30, 2010
2009C: April 1, 2014-March 31, 2016, average trade-weighted price
April 1-30, 2011
The Board of Directors has no other current authorisations to raise
convertible loans and/or to raise the share capital through a new
issue.
Market liquidity guarantee
Alma Media and eQ Pankki Oy have made a liquidity contract under
which eQ Pankki Oy guarantees bid and ask prices for the shares with
a maximum spread of 3% during 85% of the exchange's trading hours.
The contract applies to a minimum lot of 2,000 shares.
EVENTS AFTER THE REVIEW PERIOD
On July 2, 2009 Alma Media received information from Skandinaviska
Enskilda Banken, Ilkka-Yhtymä Oyj and Kaleva Kustannus Oy that
Skandinaviska Enskilda Banken, Ilkka-Yhtymä Oyj and Kaleva Kustannus
Oy have entered a conditional agreement on the sale of 11,958,000
Alma Media shares to Ilkka-Yhtymä Oyj and Kaleva Kustannus Oy. In
case the agreement is fulfilled, the holding of Skandinaviska
Enskilda Banken will become under 1/20 (5%), the holding of
Ilkka-Yhtymä Oyj will rise to 20.4% (15,218,991 shares) and the
holding of Kaleva Kustannus Oy will rise to 5.97% (4,458,000 shares).
SUMMARY OF FINANCIAL STATEMENTS AND NOTES
SUMMARY OF FINANCIAL STATEMENTS AND NOTES
2009 2008 2009 2008 2008
INCOME STATEMENT. MEUR Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec
NET SALES 79.3 89.3 155.8 173.2 341.2
Other operating income 0.1 0.7 0.2 0.7 1.7
Materials and services -23.9 -26.4 -47.3 -51.5 -102.0
Costs arising from
employment benefits -28.5 -30.1 -58.1 -59.5 -119.0
Depreciation and writedowns -2.2 -2.1 -4.4 -4.3 -8.8
Operating expenses -12.9 -16.3 -27.7 -32.1 -64.9
OPERATING PROFIT 11.9 15.0 18.5 26.6 48.3
Financial income 0.1 0.2 0.5 0.8 1.2
Financial expenses -0.1 -0.3 -0.6 -0.6 -1.6
Share of associated
companies' results -0.4 0.8 -0.3 1.8 4.5
PROFIT BEFORE TAX 11.5 15.7 18.1 28.6 52.4
Income tax -3.3 -4.0 -5.1 -7.2 -13.4
PROFIT FOR THE PERIOD 8.3 11.8 12.9 21.5 39.0
OTHER COMPREHENSIVE INCOME
Exchange difference on
translation of foreign
operations -0.1 0.0 -0.1 0.0 -0.8
Share of associated
companies' other
comprehensive income 0.0 0.0 -0.7 -0.3 -0.9
Income tax relating to
components of other
comprehensive income 0.0 0.0 0.0 0.0 0.0
Other comprehensive income
for the period.net of tax -0.1 0.0 -0.8 -0.3 -1.8
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD 8.2 11.8 12.1 21.1 37.2
Distribution of the profit
for the period:
To the parent company
shareholders 8.3 11.6 12.9 21.0 38.4
Minority interest 0.0 0.2 0.0 0.4 0.6
Distribution of the
comprehensive income for the
period:
To the parent company
shareholders 8.2 11.6 12.1 20.7 36.6
Minority interest 0.0 0.2 0.0 0.4 0.6
Earning/share calculated from
the profit for the period to
the parent company
shareholders
Earnings/share, EUR 0.11 0.16 0.17 0.28 0.51
Earnings/share (diluted), EUR 0.11 0.16 0.17 0.28 0.51
30 Jun 2009 30 Jun 2008 31 Dec
BALANCE SHEET, MEUR 2008
ASSETS
NON-CURRENT ASSETS
Goodwill 32.9 32.6 33.0
Intangible assets 11.9 11.8 12.3
Tangible assets 33.3 36.9 35.2
Investments in associated companies 28.7 31.9 31.6
Other financial assets 4.4 5.2 4.2
Deferred tax assets 1.1 1.1 1.3
CURRENT ASSETS
Inventories 1.4 1.2 1.5
Tax receivables 1.6 0.8 4.0
Accounts receivable and other 24.4 32.8
receivables 27.5
Other short-term financial assets 1.8 2.7 2.9
Cash and cash equivalents 14.4 8.5 13.3
ASSETS AVAILABLE FOR SALE 0.0 4.7 0.0
TOTAL ASSETS 156.0 170.3 166.9
30 Jun 2009 30 Jun 2008 31 Dec
BALANCE SHEET, MEUR 2008
SHAREHOLDERS' EQUITY AND LIABILITIES
Share capital 44.8 44.8 44.8
Share premium fund 2.8 2.8 2.8
Cumulative translation adjustment -0.9 0.0 -0.8
Retained earnings 31.3 23.9 41.1
Parent company shareholders' equity 78.0 71.5 87.9
Minority interest 0.0 0.4 0.6
TOTAL SHAREHOLDERS' EQUITY 78.0 71.9 88.5
LIABILITIES
Non-current liabilities
Interest-bearing liabilities 3.3 4.2 3.9
Deferred tax liabilities 2.4 2.4 2.5
Pension obligations 3.5 3.6 3.7
Provisions 0.1 0.1 0.1
Other long-term liabilities 0.5 0.5 0.5
Current liabilities
Interest-bearing liabilities 11.3 28.2 15.2
Advances received 22.4 22.0 12.3
Tax liabilities 0.0 0.0 1.3
Provisions 0.6 0.2 1.0
Accounts payable and other 33.8 37.2
liabilities 37.9
TOTAL LIABILITIES 77.9 98.4 78.4
TOTAL EQUITY AND LIABILITIES 156.0 170.3 166.9
RECONCILIATION OF SHAREHOLDERS' EQUITY 1 January - 30 June 2009
Share Transla- Parent
Share premium tion Retained company Minority Equity
MEUR capital fund difference earnings total interest total
Equity, 1 44.8 2.8 -0.8 41.1 87.9 0.6 88.5
January 2009
Dividend
paid by
parent
company -22.4 -22.4 -22.4
Dividends
paid by
subsidiaries -0.6 -0.6
Share-based
payments 0.3 0.3 0.3
Total
Comprehensive
income for
the period -0.1 12.2 12.1 0.0 12.1
Equity, 30
June 2009 44.8 2.8 -0.9 31.3 78.0 0.0 78.0
RECONCILIATION OF SHAREHOLDERS' EQUITY 1 January - 30 June 2008
Share Transla-tion Parent
Share premium difference Retained company Minority Equity
MEUR capital fund earnings total interest total
Equity, 1 44.8 2.8 0.0 70.0 117.7 0.6 118.3
January 2008
Dividend
paid by
parent
company -67.2 -67.2 -67.2
Dividends
paid by -0.6 -0.6
subsidiaries
Share of
associated
companies'
equity items -0.1 -0.1 -0.1
Share-based
payments 0.4 0.4 0.4
Total
Comprehensive
income for
the period 20.7 20.7 0.4 21.1
Equity, 30 44.8 2.8 0.0 23.9 71.5 0.4 71.9
June 2008
2009 2008 2009 2008 2008
CASH FLOW STATEMENT. MEUR Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec
Cash flow from operating
activities
Profit for the period 8.3 11.8 12.9 21.5 39.0
Adjustments 5.3 4.7 9.3 8.6 17.5
Change in working capital -6.9 -8.1 9.1 7.4 4.0
Dividend income received 1.5 3.8 2.3 4.0 4.5
Interest income received 0.1 0.2 0.5 0.6 0.9
Interest expenses paid -0.1 -0.3 -0.6 -0.6 -1.6
Taxes paid -4.1 -6.3 -3.9 -8.9 -17.5
Net cash provided by
operating activities 4.0 5.7 29.5 32.5 46.9
Cash flow from investing
activities
Investments in tangible and
intangible assets -0.9 -1.5 -1.7 -2.4 -4.2
Proceeds from disposal of
tangible and intangible
assets 0.0 1.0 0.0 1.0 1.0
Other investments -0.1 -0.8 -0.1 -0.8 -1.2
Proceeds from disposal of
other investments 0.1 0.0 0.1 0.1 0.8
Subsidiary shares purchased 0.0 -1.9 0.0 -3.9 -4.0
Associated company shares
purchased -0.2 0.0 -0.2 0.0 0.0
Associated company shares
purchased 0.0 0.0 0.0 0.0 6.5
Net cash used in investing
activities -1.0 -3.2 -1.9 -6.0 -1.0
Cash flow before financing
activities 2.9 2.5 27.7 26.5 45.8
Cash flow from financing
activities
Long-term loan repayments 0.0 0.0 0.0 0.0 0.0
Short-term loans raised 0.0 0.0 17.8 35.0 35.0
Short-term loans repaid -21.0 -9.5 -22.5 -10.2 -24.3
Change in interest-bearing
receivables 1.1 0.4 1.1 0.2 0.0
Dividends paid and capital
repayment -0.6 -0.6 -23.0 -67.8 -67.8
-20.4 -9.8 -26.6 -42.8 -57.1
Change in cash funds
(increase + / decrease -) -17.5 -7.3 1.1 -16.3 -11.2
Cash and cash equivalents at
start of period 31.8 15.7 13.3 24.8 24.8
Impact of change in foreign
exchange rates 0.0 0.0 0.0 0.0 -0.2
Cash and cash equivalents at
end of period 14.4 8.5 14.4 8.5 13.3
Net sales by geographical 2009 2008 2009 2008 2008
area, MEUR Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec
Finland 76.1 84.6 149.2 163.9 324.0
Rest of EU countries 3.1 4.6 6.2 9.1 16.7
Rest of other countries 0.1 0.1 0.3 0.3 0.6
Total 79.3 89.3 155.8 173.2 341.2
INFORMATION BY SEGMENT
Alma Media's reporting segments in the financial statements are
Newspapers, Kauppalehti group and Marketplaces. Other Operations
comprise the Group's parent company and the operations of the Group's
financial management service centre.
The descriptive section of the financial statements presents the net
sales and operating profits of the segments and the allocation of the
associated companies' results to the reporting segments. Financial
items and income taxes are not allocated to the segments. The
following table presents the assets and liabilities of the segments
as well as the non-allocated asset and liability items.
30 Jun 2009 30 Jun 2008 31 Dec
ASSETS BY SEGMENT, MEUR 2008
Newspapers 64.1 69.4 67.5
Kauppalehti group 47.4 54.0 52.3
Marketplaces 13.3 16.7 15.2
Other operations and eliminations 12.6 19.7 10.5
Non-allocated assets 18.6 10.5 21.4
Total 156.0 170.3 166.9
30 Jun 2009 30 Jun 2008 31 Dec
LIABILITIES BY SEGMENT, MEUR 2008
Newspapers 38.6 40.2 32.7
Kauppalehti group 13.2 13.5 11.8
Marketplaces 3.5 4.3 4.2
Other operations and eliminations 5.6 5.6 6.8
Non-allocated liabilities 17.0 34.7 22.9
Total 77.9 98.3 78.4
2009 2008 2009 2008 2008
GROUP INVESTMENTS, MEUR Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec
Newspapers 0.6 2.1 1.5 7.5 9.4
Kauppalehti group 0.3 0.4 0.6 0.8 1.4
Marketplaces 0.3 0.5 0.5 0.8 2.1
Others 0.3 0.9 0.4 1.0 1.6
Total 1.4 3.9 3.0 10.1 14.5
PROVISIONS
The company's provisions on June 30, 2009 totalled MEUR 0.7,
representing a decrease of MEUR 0.4 from the situation on December
31, 2008. The major part of the provisions concern restructuring
provisions. It has not been necessary to change the estimates made
when the provisions were entered. The change in provisions is due to
actual expenses.
30 Jun 2009 30 Jun 2008 31 Dec
COMMITMENTS AND CONTINGENCIES, MEUR 2008
Collateral on own behalf
Chattel mortgages 0.0 0.0 0.0
Collateral for others
Guarantees 0.0 0.0 0.0
Other commitments
Commitments based on agreements 0.1 0.1 0.1
Minimum rents payable based on other
lease agreements:
Within one year 7.5 7.6 7.9
Within 1-5 years 18.8 17.4 19.1
After 5 years 26.5 25.1 27.9
Total 52.8 50.1 54.9
The Group also has purchase agreements
based on IFRIC 4 which include a lease
component per IAS 17, Minimum payments
based on these agreements: 2.0 4.2 3.1
31 Dec
GROUP DERIVATIVE CONTRACTS, MEUR 30 Jun 2009 30 Jun 2008 2008
Commodity derivative contracts.
electricity derivatives
Fair value * -0.1 0.2 -0.1
Nominal value 0.9 0.4 0.7
* the fair-value represents the return that would have arisen if the
derivative had been cleared on the balance sheet date.
RELATED PARTIES
Alma Media Group's related parties are its associated companies and
the companies they own. The following table summarises the business
operations undertaken between Alma Media and its associated companies
and the status of their receivables and liabilities:
RELATED
PARTY
ACTIVITIES 2009 2008 2009 2008 2008
WITH Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec
ASSOCIATED
COMPANIES,
MEUR
Sales of
goods and
services 0.0 0.1 0.1 0.2 0.2
Purchases of
goods and
services 1.0 1.2 1.9 2.3 4.5
Accounts
receivable,
loan and
other
receivables
at the
balance
sheet date 0.0 4.7 0.0
Accounts 0.1 0.1
payable at
the balance
sheet date 0.1
Related parties also include the company's senior management (members
of the Board of Directors, presidents and the Group Executive Team).
The section The Alma Media Share - Option Rights of this report
presents information on changes to the current option programme
intended to motivate and secure the long-term commitment of the
Group's senior management.
MAIN ACCOUNTING PRINCIPLES (IFRS)
This interim report has been prepared according to IFRS standards
(IAS 34).
The report applies the same accounting principles and calculation
methods as the previous annual accounts dated December 31, 2008.
However, the interim report does not contain all the information or
notes to the accounts included in the annual financial statements.
This interim report should therefore be read in conjunction with the
company's annual report.The key indicators are calculated using the same formulae as applied
in the previous annual financial statements. The quarterly
percentages of Return on Investment (ROI) and Return on Equity (ROE)
have been annualised using the formula ((1+quarterly return)4)-1).
In June, the Group performed and impairment test on goodwill and
other assets. Based on the tests, no impairments have been recorded.
In the financial year 2009, the Group has adopted the following new
accounting standards and interpretations:
IFRS 8 Operating Standards
IAS 23 Borrowing costs, amendment to standard
IAS 1 Presentation of financial statements, amendment to standard
IFRS 2 Share-based payments, amendment to standard
IAS 1 Presentation of financial statements and IAS 32 presentation of
financing instruments, amendment to standard
IAS 39 IAS 39 Financial Instruments: recognition and measurement,
amendment to standard
IFRIC 12 Service concession arrangements
IFRIC 13 Customer loyalty programmes
IFRIC 16 Hedges of net investments in a foreign operation
Improvements to IFRS amendments
The European Union has not yet approved the adoption of the amended
standard IAS 39. An EU approval is necessary for the amended
standards to be adopted within the Group.
The Group preliminarily expects that the above new standards and
interpretations will have only a minor effect. The Group
preliminarily expects that their application mainly affects the way
of presenting the profit and loss statement, the balance sheet, the
presentation of changes in equity and notes to the financial
statements.
New accounting standards to be adopted from the beginning of 2010
are:
IFRS 3 Business combinations, amendment to standard
IAS 27 Consolidated and separate financial statements
These amendments will affect the treatment of future acquisitions as
far as, for example, the minority share, goodwill and acquisition
costs are concerned. The amendments will have no effect on
acquisitions already made.
The figures in this interim report are unaudited.
SEASONALITY
The Group recognises its circulation revenues as paid. For this
reason circulation revenues accrue in the income statement fairly
evenly during the four quarters of the year. The bulk of circulation
invoicing takes place at the beginning of the year and therefore the
cash flow from operating activities is strongest in the first and
second quarters. This also affects the company's balance sheet
position in different quarters.
GENERAL STATEMENT
This report contains certain statements that are estimates based on
the management's best knowledge at the time they were made. For this
reason they contain a certain amount of risk and uncertainty. The
estimates may change in the event of significant changes in the
general economic conditions.
NEXT INTERIM REPORT
Alma Media will publish its financial statements for the first nine
months of 2009 on October 29, 2009 at 9:00am (EET).
ALMA MEDIA CORPORATION
Board of Directors
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