2011-07-22 07:59:00 CEST
2011-07-22 08:00:07 CEST
REGULATED INFORMATION
Alma Media - Interim report (Q1 and Q3)
Alma Media's Interim Report for January-June 2011: Advertising sales grew for printed papers
Alma Media Corporation Interim Report July 22, 2011 at 9:00am (EEST)
Alma Media's Interim Report for January-June 2011:
ADVERTISING SALES GREW FOR PRINTED PAPERS
Financial performance April-June 2011:
* Revenue was MEUR 82.7 (78.7), up 5.1%.
* Circulation revenue was MEUR 30.3 (30.7), down 1.4%, advertising revenue
MEUR 42.7 (38.6), up 10.8% and content and service revenue MEUR 9.7 (9.5),
up 2.6%
* Operating profit excluding non-recurring items was MEUR 11.5 (11.3), 14.0%
(14.3%) of revenue, up 2.6%.
* Operating profit was MEUR 11.0 (10.9), 13.3% (13.8%) of revenue, up 1.4%.
* Profit for the period was MEUR 8.8 (7.8), up 12.5%.
* Earnings per share were EUR 0.11 (0.10), up 7.9%.
Financial performance January-June 2011:
* Revenue was MEUR 159.8 (153.1), up 4.4%.
* Circulation revenue was MEUR 61.0 (61.4), down 0.6%, advertising revenue
MEUR 80.4 (73.4), up 9.6% and content and service revenue MEUR 18.5 (18.4),
up 0.5%
* Operating profit excluding non-recurring items was MEUR 20.9 (19.6), 13.0%
(12.8%) of revenue, up 6.6%.
* Operating profit was MEUR 20.0 (19.1), 12.5% (12.5%) of revenue, up 4.7%.
* Profit for the period was MEUR 15.7 (14.1), up 11.7%.
* Earnings per share were EUR 0.20 (0.19), up 6.5%.
Key figures 2011 2010 Change 2011 2010 Change 2010
MEUR Q2 Q2 % Q1-Q2 Q1-Q2 % Q1-Q4
--------------------------------------------------------------------------------
Revenue 82.7 78.7 4.0 5.1 159.8 153.1 6.7 4.4 311.4
Circulation revenue 30.3 30.7 -0.4 -1.4 61.0 61.4 -0.4 -0.6 125.3
Advertising revenue 42.7 38.6 4.2 10.8 80.4 73.4 7.0 9.6 148.2
Contents and service
revenue *) 9.7 9.5 0.2 2.6 18.5 18.4 0.1 0.5 37.8
Total expenses excluding
non-recurring items 71.2 67.7 3.5 5.1 139.0 133.8 5.2 3.9 267.6
--------------------------------------------------------------------------------
Operating profit excluding
non-recurring items 11.5 11.3 0.3 2.6 20.9 19.6 1.3 6.6 43.9
% of revenue 14.0 14.3 13.0 12.8 0.0 14.1
Operating profit 11.0 10.9 0.2 1.4 20.0 19.1 0.9 4.7 43.4
% of revenue 13.3 13.8 12.5 12.5 0.0 13.9
--------------------------------------------------------------------------------
Profit for the period 8.8 7.8 1.0 12.5 15.7 14.1 1.7 11.7 33.2
--------------------------------------------------------------------------------
Earnings per share, EUR
(basic) 0.11 0.10 0.01 7.9 0.20 0.19 0.00 6.5 0.44
Earnings per share, EUR
(diluted) 0.11 0.10 0.01 7.5 0.20 0.19 0.00 6.1 0.44
*) Content and service revenue includes, among others, the digital service and
custom media revenue as well as the external rental, distribution and printing
revenue.
Outlook for 2011:
Alma Media expects its full-year revenue and operating profit excluding non-
recurring items to increase from the 2010 level. Full-year revenue for 2010 was
MEUR 311.4, operating profit excluding non-recurring items MEUR 43.9 and
operating profit MEUR 43.4.
Kai Telanne, President and CEO:
According to TNS Gallup, media advertising in Finland grew by 14.0% (1.4%) in
January-May. Campaigns for the parliamentary election in April caused an
increase in advertising over the comparison period. Newspaper advertising spend
increased by 9.9% in January-May; 7.1% excluding election advertising. Strong
development also continued in online advertising, with advertisers' spending
increasing by 34.3% (23.3%) in January-May. The printed newspaper is the most
significant advertising medium in terms of euros.
Revenue from Alma Media's advertising sales increased by 10.8% during the second
quarter of the year and was MEUR 42.7. Advertising sales for printed newspapers
grew by 8.1% and those for online services by 19.6% from the comparison period.
Advertising sales for printed media were strong particularly for Aamulehti,
Iltalehti and Satakunnan Kansa. The strong growth of online advertising sales
for Alma Media's newspapers slowed down slightly during the second quarter,
mainly because of the decelerated growth in Iltalehti.fi advertising sales.
Alma Media's circulation revenue was MEUR 30.3. Circulation revenue decreased by
1.4% due to the decline in the single-copy sales of Iltalehti.
The investment in the renewal of the Tampere printing facility is progressing
according to plan. An agreement for the purchase of the finishing equipment for
the new facility from Ferag AG was signed. The new printing facility will start
operation in early 2013.
Alma Media's printing and distribution unit Alma Manu started a development and
rationalisation programme in April. The statutory personnel negotiations related
to the programme that affected approximately 1,000 employees in Pirkanmaa and
Satakunta were completed in June. As a result of the negotiations, the number of
staff will decrease by 54 full-time work years and the newspaper printing
facility in Pori will be closed down by the end of January 2012.
The Supreme Court did not grant either of the parties to the dispute over the
ETUOVI.COM trademark a leave to appeal. According to the decision, there are no
obstacles for Alma Media to use its trademark ETUOVI.COM as the brand for its
online services. From Alma Media's perspective, the long trademark dispute has
now reached a satisfactory end.
The development of digital services continued. Kauppalehti as well as the local
newspapers published by Suomen Paikallissanomat Oy started to appear on Apple's
iPad in June. In addition, a new technology platform was taken into use at
Autotalli.com during the review period, a holiday cottage section was launched
at Vuokraovi.com and Monster.fi's BeKnown service was introduced for social
media networking of the professionals.
For further information, please contact:
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 in Finnish concerning its January-June 2011
results in the Carl conference room of the Hotel Scandic Marski, Mannerheimintie
10, Helsinki, from 11 am to 12 noon (EEST) on July 22, 2011. The results will be
presented by Kai Telanne, President and CEO, and Tuomas Itkonen, CFO.
Presentation materials for the event will be available online
atwww.almamedia.fi/calendar at 11:00 am on the same day.
A webcast and conference call in English will start at 1:00 pm (EEST) on July
22, 2011. You may participate in the conference call by calling +44 (0)
20 7136 6283 (confirmation code 2817147), or follow the event online
atwww.almamedia.fi/investors (audio webcast).
Rauno Heinonen
Vice President, Corporate Communications and IR
Alma Media Corporation
DISTRIBUTION: NASDAQ OMX Helsinki, principal media
ALMA MEDIA GROUP INTERIM REPORT JANUARY 1-JUNE 30, 2011
The descriptive part of this review focuses on the result of January-June 2011.
The figures are compared in accordance with the International Financial
Reporting Standards (IFRS) with those of the corresponding period in 2010,
unless otherwise stated. The figures in the tables are independently rounded.
KEY FIGURES 2011 2010 Change 2011 2010 Change 2010
MEUR Q2 Q2 % Q1-Q2 Q1-Q2 % Q1-Q4
--------------------------------------------------------------------------------
Revenue 82.7 78.7 5.1 159.8 153.1 4.4 311.4
Total expenses excluding
non-recurring items 71.2 67.7 5.1 139.0 133.8 3.9 267.6
--------------------------------------------------------------------------------
Operating profit excluding
non-recurring items 11.5 11.3 2.6 20.9 19.6 6.6 43.9
% of revenue 14.0 14.3 13.0 12.8 14.1
Operating profit 11.0 10.9 1.4 20.0 19.1 4.7 43.4
% of revenue 13.3 13.8 12.5 12.5 13.9
--------------------------------------------------------------------------------
Profit before tax 11.8 11.0 7.3 21.1 19.5 7.8 45.0
Profit for the period 8.8 7.8 12.5 15.7 14.1 11.7 33.2
--------------------------------------------------------------------------------
Return on Equity/ROE
(Annual), %* 55.8 47.4 17.7 34.8 34.4 1.3 31.6 %
Return on Investment/ROI
(Annual), %* 45.7 45.7 0.0 32.9 33.5 -2.0 31.1 %
Net financial expenses -0.3 0.0 4431.2 -0.2 0.0 -359.8 -0.9
Net financial expenses, %
of revenue -0.4 0.0 4221.5 -0.1 0.0 -340.4 -0.3
Balance sheet total 166.1 150.5 166.1 150.5 10.3 184.5
Capital expenditure 1.4 2.9 -51.3 2.9 5.9 -51.8 12.9
Capital expenditure, % of
revenue 1.7 3.6 -53.7 1.8 3.9 -53.8 4.1
Equity ratio 56.6 64.6 56.6 64.6 -12.3 67.1
Gearing, % -10.6 -17.6 -10.6 -17.6 -40.1 -28.2
Interest-bearing net debt -8.5 -14.5 -8.5 -14.5 -41.0 -32.4
Interest-bearing
liabilities 14.7 4.3 14.7 4.3 240.5 4.0
Non-interest-bearing
liabilities 70.6 64.0 70.6 64.0 10.2 65.7
Average no. of personnel,
calculated as full-time
employees, excl. delivery
staff 1,858 1,830 1.5 1,826 1,785 1.6 1,806
Average no. of delivery
staff 960 1,001 -4.1 938 970 -3.3 962
--------------------------------------------------------------------------------
Share indicators
--------------------------------------------------------------------------------
Earnings per share, EUR
(basic) 0.11 0.10 7.9 0.20 0.19 6.5 0.44
Earnings per share, EUR
(diluted) 0.11 0.10 7.5 0.20 0.19 6.1 0.44
Cash flow from operating
activities/share, EUR -0.02 0.09 -122.6 0.35 0.39 -10.5 0.61
Shareholders' equity per
share, EUR 1.04 1.09 0.00 1.04 1.09 -4.6 1.50
Dividend per share 0.70
Effective dividend yield 8.5
P/E Ratio 0.0 0.0 0.0 18.9
Market capitalisation 508.8 480.3 0.0 508.8 480.3 5.9 621.4
Average no. of shares
(1,000 shares)
- basic 75,302 74,852 75,190 74,733 74,894
- diluted 75,751 75,022 75,793 74,961 75,086
No. of shares at end of
period (1,000 shares) 75,487 75,053 75,487 75,053 75,053
--------------------------------------------------------------------------------
*) see Main Accounting Principles of the Interim Report
MARKET CONDITIONS
The GDP of Finland is expected to grow by 3-4% in 2011.
TNS Gallup has announced that it will publicise the January-June market
information on week 30. The total advertising volume continued to grow in
January-May 2011 and was up 14.0% (1.4%). Advertising in newspapers increased by
9.9% to MEUR 230.7 (MEUR 209.7) accelerated by election advertising in spring.
Advertising in online media continued its strong growth in January-May with
advertising spend increasing by 34.3% (23.3%). The printed newspaper is the most
significant advertising medium in terms of euros.
The total market for afternoon papers decreased by 4.8% (5.0%) during the second
quarter of 2011.
CHANGES IN GROUP STRUCTURE
In February 2011, Alma Media acquired the majority (51%) of Mascus A/S in
Denmark. The company is reported as part of the Marketplaces segment in Alma
Media's consolidated financial statements.
Further details of the business combinations are given in the notes of this
interim report.
GROUP REVENUE AND RESULT APRIL-JUNE 2011
The Group's revenue grew by 5.1% (down 0.7%) and totalled MEUR 82.7 (78.7). The
revenue from the printed media was MEUR 61.5 (59.6), representing 74.4% (75.7%)
of the Group's total revenue. The revenue generated by digital products and
services grew by 14.8% and amounted to MEUR 14.6 (12.7). The share of the
digital business in the Group's revenue increased to 17.6% (16.1%).
The Group's advertising sales grew by 10.8% to MEUR 42.7 (38.6), representing
51.7% (49.0%) of the total revenue. The advertising sales for printed media
increased 8.1% to MEUR 31.2 (28.9). The online advertising sales grew by 19.6%
to MEUR 11.3 (9.4).
The circulation revenue amounted to MEUR 30.3 (30.7). Circulation revenue fell
slightly due to the decline in the single-copy sales of Iltalehti. Circulation
revenue for Kauppalehti remained at last year's level.
The content and service revenue was MEUR 9.7 (9.5).
Total expenses excluding non-recurring items grew by 5.1% and totalled MEUR
71.2 (67.7). Total expenses grew by 5.3% to MEUR 71.1 (68.1). The growth in
total expenses was mainly attributable to increase in personnel, printing and
distribution expenses as well as sales and marketing expenditure.
The operating profit excluding non-recurring items increased by 2.6% (down
7.5%) and amounted to MEUR 11.5 (11.3). The operating profit excluding non-
recurring items was 14.0% (14.3%) of revenue. The operating profit was MEUR
11.0 (10.9) and decreased to 13.3% (13.8%) of revenue.
The operating profit includes MEUR -0.5 (-0.4) in net non-recurring items. The
details of the non-recurring items are explained under Non-recurring items on
page 10.
Profit for April-June 2011 was MEUR 8.8 (7.8). Profit for the period excluding
non-recurring items was MEUR 9.3 (8.2).
GROUP REVENUE AND RESULT JANUARY-JUNE 2011
In the first half of 2011, the revenue grew by 4.4% (down 1.7%) and totalled
MEUR 159.8 (153.1). The revenue from printed media was MEUR 118.8 (116.6),
representing 74.4% (76.2%) of the Group's total revenue. The revenue generated
by digital products and services grew by 18.9% and amounted to MEUR 28.7 (24.1).
The share of the digital business in the Group's revenue was 17.9% (15.7%).
The Group's advertising sales grew by 9.6% to MEUR 80.4 (73.4), representing
50.3% (47.9%) of the total revenue. The advertising sales for printed media
increased by 4.6% to MEUR 57.9 (55.3). The online advertising sales grew by
25.1% to MEUR 22.1 (17.6). The circulation revenue amounted to MEUR 61.0 (61.4).
The content and service revenue was MEUR 18.5 (18.4).
Total expenses excluding non-recurring items grew by 3.9% and totalled MEUR
139.0 (133.8). Total expenses grew by 4.3% to MEUR 140.0 (134.3).
The operating profit excluding non-recurring items increased by 6.6% (down
0.6%) and amounted to MEUR 20.9 (19.6). The operating profit excluding non-
recurring items was 13.0% (12.8%) of revenue. The operating profit was MEUR
20.0 (19.1). The operating profit remained at the level of the comparison
period, 12.5% (12.5%) of revenue.
The operating profit includes MEUR -0.8 (-0.5) in net non-recurring items. The
details of the non-recurring items are explained under Non-recurring items on
page 10.
Profit for January -June 2011 was MEUR 15.7 (14.1). Profit for the period
excluding non-recurring items was MEUR 16.5 (14.6).
BUSINESS SEGMENTS
The business segments of Alma Media are Newspapers, Kauppalehti Group,
Marketplaces and Other operations. The business segments are reported in this
interim report according to the Group's internal organisational structure.
REVENUE AND OPERATING PROFIT/LOSS BY SEGMENT
REVENUE BY SEGMENT, 2011 2010 Change 2011 2010 Change 2010
MEUR Q2 Q2 % Q1-Q2 Q1-Q2 % Q1-Q4
------------------------------------------------------------------------------
Newspapers
External 56.9 54.4 109.7 105.6 215.1
Inter-segments 1.0 1.0 2.1 2.1 4.1
------------------------------------------------------------------------------
Newspapers total 57.9 55.4 4.5 111.8 107.6 3.8 219.3
Kauppalehti Group
External 14.8 14.1 28.5 28.1 57.2
Inter-segments 0.2 0.3 0.4 0.4 0.7
------------------------------------------------------------------------------
Kauppalehti Group total 15.0 14.4 3.8 28.9 28.5 1.4 57.9
Marketplaces
External 9.8 8.3 18.9 16.0 32.3
Inter-segments -0.2 -0.1 -0.3 -0.1 -0.3
------------------------------------------------------------------------------
Marketplace total 9.5 8.2 16.1 18.7 15.8 18.0 32.1
Other operations
External 1.3 1.8 2.8 3.5 6.7
Inter-segments 19.4 17.5 37.5 35.1 71.9
------------------------------------------------------------------------------
Other operations total 20.7 19.3 7.2 40.3 38.6 4.3 78.5
Elimination -20.4 -18.7 -39.7 -37.4 -76.4
------------------------------------------------------------------------------
Total 82.7 78.7 5.1 159.8 153.1 4.4 311.4
------------------------------------------------------------------------------
OPERATING PROFIT/LOSS BY
SEGMENT, 2011 2010 Change 2011 2010 Change 2010
MEUR *) Q2 Q2 % Q1-Q2 Q1-Q2 % Q1-Q4
------------------------------------------------------------------------------
Newspapers 9.2 9.2 0.0 15.4 16.0 -4.1 32.9
Kauppalehti Group 2.0 2.5 -21.5 3.1 4.0 -22.0 8.2
Marketplaces 1.6 -0.7 332.4 3.2 -0.7 554.7 0.4
Other operations -1.7 -0.1 -1231.0 -1.7 -0.3 -543.3 1.9
------------------------------------------------------------------------------
Total 11.0 10.9 1.4 20.0 19.1 4.7 43.4
------------------------------------------------------------------------------
*) including non-recurring
items
Newspapers
The Newspapers segment reports the publishing activities of 34 newspapers. The
largest titles are Aamulehti and Iltalehti.
Newspapers 2011 2010 Change 2011 2010 Change 2010
Key figures,
MEUR Q2 Q2 % Q1-Q2 Q1-Q2 % Q1-Q4
----------------------------------------------------------------------------
Revenue 57.9 55.4 4.5 111.8 107.6 3.8 219.3
Circulation
revenue 26.8 27.2 -1.7 53.7 54.0 -0.6 110.3
Advertising
revenue 30.0 27.4 9.5 56.0 52.0 7.6 104.9
Content and
service
revenue 1.2 0.8 42.0 2.1 1.6 32.8 4.1
Total
expenses
excluding
non-recurring
items 48.8 46.5 4.9 95.9 91.8 4.5 186.3
----------------------------------------------------------------------------
Operating
profit
excluding
non-recurring
items 9.2 9.2 0.0 15.9 16.1 -1.6 33.1
Operating
profit
excluding
non-recurring
items, % 15.8 16.5 14.2 15.0 15.1
Operating
profit 9.2 9.2 0.0 15.4 16.0 -4.1 32.9
Operating
profit, % 15.8 16.5 13.8 14.9 15.0
----------------------------------------------------------------------------
Average no.
of personnel,
calculated as
full-time
employees
excl.
delivery
staff 994 989 0 976 953 2 972
Average no.
of delivery
staff * 114 98 16 108 98 11 99
----------------------------------------------------------------------------
2011 2010 2011 2010 2010
Operational
key figures Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
------------------------------------------------------------------------
Audited
circulation
Iltalehti 107,052
Aamulehti 131,539
Online services, unique browsers, weekly
Iltalehti.fi 2,907,546 2,140,489 2,900,309 2,160,850 2,276,375
Telkku.com 646,887 601,926 678,840 620,390 616,325
Aamulehti.fi 343,435 263,980 336,205 269,479 299,467
--------------------------------------------------------------------------------
April-June 2011
The Newspapers segment's revenue increased to MEUR 57.9 (55.4). Advertising
sales in the segment totalled MEUR 30.0 (27.4), up 9.5% (0.5%). Advertising
sales in printed media increased by 8.8% (decreased by 3.3%). The segment's
online advertising sales grew by 15.4% (50.4%). The rapid growth of online
advertising sales slowed down slightly during the second quarter mainly due to
the decelerated growth in Iltalehti.fi's advertising sales.
The segment's circulation revenue decreased to MEUR 26.8 (27.2). The popularity
of the biggest online service in Finland, Iltalehti.fi, continued to grow.
During week 20, it again broke the Finnish visitor record with 3.3 million
unique browsers visiting the site. The local newspapers published by Suomen
Paikallissanomat Oy began to appear also in Apple's iPad tablets.
The segment's total expenses were MEUR 48.8 (46.5). They grew mainly due to
increases in personnel expenses and printing and distribution expenses.
The segment's operating profit was MEUR 9.2 (9.2), 15.8% (16.5%) of revenue. No
non-recurring items were reported during the review period.
January-June 2011
The Newspapers segment's revenue increased to MEUR 111.8 (107.6). Advertising
sales in the segment totalled MEUR 56.0 (52.0), up 7.6% (0.7%). Advertising
sales in printed media increased by 5.5% (decreased by 2.4%). The segment's
online advertising sales grew by 26.6% (39.9%).
The segment's circulation revenue remained at the previous year's level, being
MEUR 53.7 (54.0).
The segment's total expenses excluding non-recurring items were MEUR 95.9
(91.8). Total expenses were MEUR 96.4 (91.8).
The segment's operating profit excluding non-recurring items was MEUR 15.9
(16.1) and the operating margin excluding non-recurring items MEUR 14.2 (15.0).
The segment's operating profit was MEUR 15.4 (16.0) and the operating margin
13.8% (14.9%).
Kauppalehti Group
The Kauppalehti Group specialises in the production of business and financial
information as well as in the provision of marketing solutions. Its best known
title is Finland's leading business paper, Kauppalehti. The Group also includes
the custom media house Alma 360 Custom Media (former Alma Media Lehdentekijät,
Suomen Businessviestintä and TTNK Helsinki), and the news agency and media
monitoring unit BNS Group that operates in the Baltic countries.
Kauppalehti
Group 2011 2010 Change 2011 2010 Change 2010
Key figures,
MEUR Q2 Q2 % Q1-Q2 Q1-Q2 % Q1-Q4
------------------------------------------------------------------------------
Revenue 15.0 14.4 3.8 28.9 28.5 1.4 57.9
Circulation
revenue 3.5 3.5 1.3 7.3 7.3 -0.4 15.0
Advertising
revenue 4.7 4.5 5.0 8.8 8.7 1.7 17.7
Content and
service revenue 6.7 6.4 4.4 12.8 12.5 2.4 25.2
Total expenses
excluding non-
recurring items 13.0 11.9 9.0 25.7 24.5 5.3 49.7
------------------------------------------------------------------------------
Operating
profit
excluding non-
recurring items 2.0 2.5 -21.5 3.1 4.0 -22.0 8.2
Operating
margin
excluding non-
recurring
items, % 13.1 17.3 10.9 14.2 -23.1 14.2
Operating
profit 2.0 2.5 -21.5 3.1 4.0 -22.0 8.2
Operating
profit, % 13.1 17.3 10.9 14.2 -23.1 14.2
--------------------------------------------------------------------------
Average no. of
personnel,
calculated as
full-time
employees 434 441 -1 435 434 0.1 437
--------------------------------------------------------------------------
2011 2010 2011 2010 2010
Operational key
figures Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
--------------------------------------------------------------------------
Audited
circulation
Kauppalehti 70,118
--------------------------------------------------------------------------
Online
services,
unique
browsers,
weekly
Kauppalehti.fi 713,927 561,783 781,601 594,508 615,354
-----------------------------------------------------------------------------
April-June 2011
The revenue of the Kauppalehti Group amounted to MEUR 15.0 (14.4) in the second
quarter. The revenue of the review period increased by 3.8% (decreased by
10.0%). Online business accounted for 23.2% (23.5%) of the segment's revenue.
The segment's advertising sales increased by 5.0% (increased by 12.9%) to MEUR
4.7 (4.5). Advertising sales for printed media grew by 5.4% (12.0%). Online
advertising sales increased by 6.9% (29.1%) from the comparison period.
The segment's circulation revenue remained at the previous year's level, MEUR
3.5 (3.5). Content and service revenue grew to MEUR 6.7 (6.4). Alma 360 Custom
Media won new customers in a challenging market situation. Kauppalehti started
to appear on Apple's iPad tablets in June.
The total expenses of the segment were MEUR 13.0 (11.9). They grew mainly due to
an increase in personnel costs and sales and marketing spending that exceeded
those of the comparison period.
The operating profit of the Kauppalehti Group was MEUR 2.0 (2.5), representing
13.1% (17.3%) of the revenue. No non-recurring items were recognised during the
review period.
January-June 2011
In the first half-year, the revenue of the Kauppalehti Group amounted to MEUR
28.9 (28.5). The revenue of the review period increased by 1.4% (decreased by
11.8%). Online business accounted for 24.0% (23.7%) of the segment's revenue.
The segment's advertising sales increased by 1.7% (4.4%) to MEUR 8.8 (8.7).
Advertising sales for printed media remained at the previous year's level.
Online advertising sales increased by 4.2% (29.5%) from the comparison period.
The segment's circulation revenue remained at the previous year's level, MEUR
7.3 (7.3). Content and service revenue grew to MEUR 12.8 (12.5).
The segment's total expenses amounted to MEUR 25.7 (24.5).
The operating profit of the Kauppalehti Group was MEUR 3.1 (4.0), representing
10.9% (14.2%) of the revenue. No non-recurring items were recognised during the
review period.
Marketplaces
The Marketplaces segment reports classified services produced on the internet
and supported by printed products. The services in Finland are Etuovi.com,
Vuokraovi.com, Monster.fi, Autotalli.com, Mascus.fi and Mikko.fi. The services
outside Finland are Mascus, Bovision, Objektvision and City24.
Marketplaces 2011 2010 Change 2011 2010 Change 2010
Key figures, MEUR Q2 Q2 % Q1-Q2 Q1-Q2 % Q1-Q4
----------------------------------------------------------------------------
Revenue 9.5 8.2 16.1 18.7 15.8 18.0 32.1
Operations in
Finland 8.2 7.0 17.4 16.1 13.5 18.8 27.5
Operations
outside Finland 1.4 1.3 11.0 2.8 2.4 13.7 4.9
Total expenses
excluding non-
recurring items 8.0 8.3 -4.4 15.6 15.9 -1.8 31.3
----------------------------------------------------------------------------
Operating profit
excluding non-
recurring items 1.6 -0.1 1364.0 3.0 0.0 10385.9 0.8
Operating margin
excluding non-
recurring items, % 16.3 -1.5 16.3 -0.2 8855.5 2.6
Operating profit 1.6 -0.7 *) 332.4 3.2 -0.7 554.7 0.4
Operating margin, % 16.3 -8.2 *) 17.1 -4.4 485.5 1.2
----------------------------------------------------------------------------
Average no. of
personnel,
calculated as full-
time employees 181 182 0 180 182 -1 180
----------------------------------------------------------------------------
2011 2010 2011 2010 2010
Operational key
figures Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
-----------------------------------------------------------------------------
Online services, unique browsers, weekly
Etuovi.com 456,970 412,600 471,740 411,381 413,044
Autotalli.com 98,819 90,192 108,130 95,282 91,182
Monster.fi 80,857 85,416 99,573 90,810 85,911
Mikko.fi 43,832 61,662 46,139 70,830 59,349
Mascus.com
(Finland) 198,014 168,960 285,840 190,258 190,320
City24 146,522 197,489 142,113 208,516 190,842
Bovision 63,417 91,685 76,043 96,684 96,706
--------------------------------------------------------------------------------
April-June 2011
In the second quarter of 2011, the revenue of the Marketplaces segment grew to
MEUR 9.5 (8.2). The segment's advertising sales were MEUR 8.7 (7.3). The
positive revenue development was mainly due to the increased online recruitment
advertising and online home sales advertising.
The total expenses for the review period excluding non-recurring items decreased
to MEUR 8.0 (8.3). Total expenses amounted to MEUR 8.0 (8.9). The total expenses
of the Marketplaces segment were brought down by the decreased transport and
distribution costs due to operational changes.
The Marketplaces segment's second-quarter operating profit grew to MEUR 1.6 (-
0.7). Operating profit excluding non-recurring items was MEUR 1.6 (-0.1). The
non-recurring item during the comparison period, MEUR -0.5, was due to
reorganisation measures.
The development of the segment's online services continued. During the review
period, a new technology platform for Autotalli.com was taken into use and the
holiday cottage section of Vuokraovi.com and Monster.fi's BeKnown service for
social media networking for professionals were launched.
The Supreme Court did not grant a leave of appeal to either of the parties to
the dispute over the ETUOVI.COM trademark, which meant that the decision by the
Helsinki Court of Appeal in December 2010 remained in force and the long
trademark dispute was brought to a satisfactory end for Alma Media. According to
the Helsinki Court of Appeal, there are no obstacles for Alma Media to use the
ETUOVI.COM trademark to identify its internet services. In contrast, Alma Media
cannot use the ETUOVI.COM trademark as a trademark for a newspaper.
January-June 2011
In the first half-year, the revenue of the Marketplaces segment increased by
18.0% (11.1%) and amounted to MEUR 18.7 (15.8). The segment's advertising sales
were MEUR 16.8 (14.0). The positive revenue development was mainly due to the
increased online recruitment advertising and online home sales advertising.
The total expenses for the review period excluding non-recurring items decreased
to MEUR 15.6 (15.9). Total expenses amounted to MEUR 15.6 (16.5).
The Marketplaces segment's operating profit for January-June grew to MEUR 3.2 (-
0.7). Operating profit excluding non-recurring items was MEUR 3.0 (0.0). The
non-recurring gains of the review period were due to corporate transactions. The
non-recurring items of the comparison period, MEUR -0.7, were attributable to
reorganisation measures.
Other operations
The Other operations segment reports the operations of the Group's printing and
distribution unit as well as parent company. The financial characteristics of
both are similar as they primarily provide services for the other business
segments.
Other operations 2011 2010 Change 2011 2010 Change 2010
Key figures, MEUR Q2 Q2 % Q1-Q2 Q1-Q2 % Q1-Q4
--------------------------------------------------------------------------------
Revenue 20.7 19.3 7.2 40.3 38.6 4.3 78.5
External 1.3 1.8 -27.1 2.8 3.5 -21.1 6.7
Inter-segments 19.4 17.5 10.8 37.5 35.1 6.8 71.9
Total expenses
excluding non-
recurring items 21.9 19.6 11.5 41.5 39.1 6.1 76.7
-----------------------------------------------------------------------------
Operating profit
excluding non-
recurring items -1.1 -0.3 -301.5 -1.2 -0.6 -115.7 1.8
Operating profit
excluding non-
recurring items, % -5.5 -1.5 -2.9 -1.4 -106.5 2.3
Operating profit -1.7 -0.1 -1231.0 -1.7 -0.3 -543.3 1.9
Operating profit, % -8.0 -0.6 -4.2 -0.7 -516.8 2.5
-----------------------------------------------------------------------------
Average no. of
personnel, calculated
as full-time employees 248 219 13 235 216 9 217
Average no. of
delivery staff 846 903 -6 830 872 -5 863
-----------------------------------------------------------------------------
2011 2010 2011 2010 2010
Operational key
figures Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
--------------------------------------------------------------------------------
Printing volume
(thousand units) 59,276 60,078 119,190 120,505 237,532
Paper usage (tonnes) 8,282 7850 15,749 15,499 32,000
--------------------------------------------------------------------------------
In January 2011, Alma Media entered a financing agreement with Pohjola Bank Plc
concerning the financing of the machinery and movable property for the new
printing facility in the maximum amount of MEUR 50. A decision has been made to
purchase the printing press from manroland AG and the finishing equipment from
Ferag AG. The machinery will be taken into production use in early 2013.
The personnel cooperation negotiations related to the development and
rationalisation programme of Alma Media's printing and distribution company Alma
Manu Oy were completed in June. As a result of the negotiations, the number of
staff will be decreased by 54 full-time work years and printing operations in
Pori will be discontinued. The printing facility in Pori will be closed down by
the end of January 2012. As a result of the personnel negotiations, non-
recurring reorganisation expenses in the amount of MEUR 0.5 were recognised.
Alma Manu will expand its distribution operations in the province of Lapland.
The distribution of Lapin Kansa and Koillis-Lappi, both Alma Media newspapers,
will be transferred from Itella to Alma Manu in January 2012.
ASSOCIATED COMPANIES
Share of profit of associated companies 2011 2010 2011 2010 2010
MEUR Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
-------------------------------------------------------------------
Newspapers 0.0 0.1 0.0 0.1 0.1
Kauppalehti Group
Talentum Oyj 0.1 0.1 0.3 0.2 0.0
Marketplaces -0.0 -0.0 -0.0 -0.0 -0.1
Other operations
Other associated companies 0.4 -0.1 0.5 0.1 0.6
-------------------------------------------------------------------
Total 0.4 0.1 0.8 0.4 0.7
Alma Media Group holds a 32.14-% 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 in Talentum is stated
as 32.64% in its consolidated financial statements of December 31, 2010 and in
this interim report.
NON-RECURRING ITEMS
Non-recurring item is an income or expense arising from non-recurring or rare
events. Gains or losses from the sale of business operations or assets, gains or
losses from discontinuing or restructuring business operations as well as
impairment losses of goodwill and other assets are recognised as non-recurring
items. Non-recurring items are recognised within the corresponding income or
expense group.
NON-RECURRING ITEMS 2011 2010 2011 2010 2010
MEUR Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
-------------------------------------------------------------------
Newspapers
Restructuring -0.5 -0.1 -0.4
Gains on sales of assets 0.2
-------------------------------------------------------------------
Marketplaces
Restructuring -0.5 -0.7 -0.5
Gains on sales of assets 0.2
-------------------------------------------------------------------
Other operations
Restructuring -0.5 0.2 -0.5 0.3 0.1
Gains on sales of assets 0.0
NON-RECURRING ITEMS IN OPERATING PROFIT -0.5 -0.4 -0.8 -0.5 -0.5
-------------------------------------------------------------------
Translation differences 0.1 -0.1
-------------------------------------------------------------------
NON-RECURRING ITEMS IN FINANCIAL ITEMS 0.1 -0.1
-------------------------------------------------------------------
BALANCE SHEET AND FINANCIAL POSITION
The consolidated balance sheet at the end of June 2011 stood at MEUR 166.1
(150.5). Alma Media's equity ratio at the end of June was 56.6% (64.9%) and
equity per share was EUR 1.04 (1.09).
The Group's interest-bearing net debt at the end of June was MEUR -8.5 (-14.5).
The fair value of the contingent considerations due to the acquisitions and
business arrangements, i.e. financial assets recognised at fair value through
profit or loss on June 30, 2011 was MEUR 7.3, and that of the liabilities MEUR
2.6.
The consolidated cash flow from operations in January-June 2011 was MEUR 26.0
(28.9). Cash flow before financing was MEUR 26.7 (25.6). Cash flow from
investing activities was affected primarily by the mergers and acquisitions.
The Group currently has a MEUR 100.0 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 85.0 on June 30, 2011. In addition, the
Group has a credit limit in the amount of MEUR 50.0 for the period August
6, 2009-August 6, 2011, which on June 30, 2011 was totally unused.
CAPITAL EXPENDITURE
Alma Media Group's capital expenditure in January-June 2011 totalled MEUR
1.4(2.9), consisting mainly of development projects related with digital
services. Other expenditure was related with normal operational and replacement
investments.
The investment in the printing facility in Tampere is proceeding according to
plan. The new printing facility will be operational in early 2013.
ADMINISTRATION
Alma Media Corporation's Annual General Meeting (AGM) held on March 17, 2011
elected Timo Aukia, Petri Niemisvirta, Seppo Paatelainen, Kai Seikku, Erkki
Solja, Catharina Stackelberg-Hammarén and Harri Suutari members of the company's
Board of Directors. In its constitutive meeting held after the AGM, the Board of
Directors elected Seppo Paatelainen its Chairman.
The Board also elected the members of its committees. Timo Aukia, Kai Seikku,
Catharina Stackelberg-Hammarén and Harri Suutari as chairman were elected
members of the Audit Committee. Petri Niemisvirta and Erkki Solja, as well as
Seppo Paatelainen as Chairman, were elected members of the Nomination and
Compensation Committee.
The Board of Directors of Alma Media Corporation has evaluated that Timo Aukia,
Petri Niemisvirta and Seppo Paatelainen are independent of the company but
dependent on its significant shareholders. The other members of the Board of
Directors are evaluated to be independent of the company and its significant
shareholders.
Mikko Korttila, General Counsel of Alma Media Corporation, was appointed
secretary to the Board of Directors.
The AGM appointed Ernst & Young Oy as the company's auditors.
The Helsinki District Court in May dismissed the charge against Kai Telanne,
Alma Media's President and CEO, regarding discrimination at work. The prosecutor
appealed against the decision on June 23, 2011.
Mr Pekka Heinänen, Master of Arts (Education), age 51, has been appointed Alma
Media's new Vice President, Human Resources and member of the Group's Executive
team. He will join Alma Media on August 15, 2011.
Alma Media Corporation applies the Finnish Corporate Governance Code for listed
companies, issued by the Securities Market Association on June 15, 2010, in its
unaltered form. The Corporate Governance Statement for 2010 is published
separately atwww.almamedia.fi/corporate_governance.
DIVIDENDS
The Annual General Meeting resolved to distribute a dividend of EUR 0.70 per
share for the financial year 2010 in accordance with the proposal of the Board
of Directors. The dividend was paid on March 29, 2011 to shareholders who were
registered in Alma Media Corporation's shareholder register maintained by
Euroclear Finland Oy on the record date, March 22, 2011. The company paid a
total of MEUR 52.5 (29.8) in dividends to its shareholders in March.
THE ALMA MEDIA SHARE
In April - June, altogether 5,638,410 Alma Media shares were traded at NASDAQ
OMX Helsinki Stock Exchange, representing 7.5% of the total number of shares.
The closing price of the Alma Media share at the end of the last trading day of
the reporting period was EUR 6.74. The lowest quotation during the reporting
period was EUR 6.01 and the highest EUR 8.17. Alma Media Corporation's market
capitalisation at the end of the review period was MEUR 508.8.
The Annual General Meeting on March 17, 2011 authorised the Board of Directors
to decide on a share issue. The authorisation would entitle the Board to issue a
maximum of 7,500,000 shares. This maximum amount of shares corresponds to
approximately 10% of the total number of shares of the company. The share issue
can be implemented by issuing new shares or transferring shares presently in
possession of the company. The authorisation entitles the Board to decide on a
directed share issue, which would entail deviating from the pre-emption rights
of shareholders. The Board may use the authorisation in one or more parts.
The Board may use the authorisation for developing the capital structure of the
company, widening the ownership base, financing or realising acquisitions or
other similar arrangements, or for other purposes decided upon by the Board. The
authorisation, however, may not be used for the incentive and commitment systems
for the company's management. The authorisation is in effect until March
17, 2013.
By April 30, 2011, a total of 434,330 shares were subscribed by using the option
rights granted under the option programme 2006B. Due to the subscriptions, the
share capital of the company increased to EUR 45,292,111.80. After the issuance,
the total number of shares of Alma Media Corporation is 75,486,853.
OPTION RIGHTS
Alma Media has the option programmes 2006 and 2009. The programmes are incentive
and commitment systems for the company's management. If all the subscription
rights are exercised, the programmes 2006 and 2009 will dilute the holdings of
the earlier shareholders by a maximum of 2.73%. Further details about the
programmes are given in the notes of this interim report.
A total of 625,000 2009C options were granted during the review period. The
subscription price was EUR 7.95 in June 2011.
MARKET LIQUIDITY GUARANTEE
There is no market liquidity guarantee in effect for the Alma Media share.
FLAGGING NOTICES
In January-June 2011, Alma Media did not receive notices of changes in
shareholdings pursuant to Chapter 2, Section 9 of the Securities Markets Act.
RISKS AND RISK MANAGEMENT
The purpose of Alma Media Group'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. Limits and processing methods are
set for quantitative and qualitative risk methods by the corporate risk
management system.
The most critical strategic risks for Alma Media are a significant drop in the
subscriptions, numbers of visitors or in the readership of its publications, a
decline in advertising sales and a significant increase in distribution and
delivery costs. Fluctuating economic cycles are reflected on the development of
advertising sales, which accounts for approximately half of the Group's revenue.
Developing businesses outside Finland such as in 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
transformation in media consumption and technological developments. The Group's
strategic objective is to meet this challenge through renewal and the
development of new business operations in online media. The most important
operational risks are disturbances in information technology systems and
telecommunication, and an interruption of printing operations.
OUTLOOK FOR 2011
Alma Media expects newspaper and online advertising to grow in 2011 compared
with the previous year. Alma Media estimates the single-copy sales of afternoon
papers to decline further. The circulation revenue of regional and local papers
as well as Kauppalehti is expected to remain at the comparison period's level.
The material and delivery costs of the Group are anticipated to increase from
the level of the comparison period.
Alma Media estimates that its full-year revenue and operating profit excluding
non-recurring items will grow from the 2010 levels. Revenue in 2010 totalled
MEUR 311.4, operating profit excluding non-recurring items MEUR 43.9 and
operating profit was MEUR 43.4.
SUMMARY OF FINANCIAL STATEMENTS AND NOTES
2011 2010 Change 2011 2010 Change 2010
COMPREHENSIVE INCOME STATEMENT, Q2 Q2 % Q1-Q2 Q1-Q2 % Q1-Q4
MEUR
--------------------------------------------------------------------------------
REVENUE 82.7 78.7 5.1 159.8 153.1 4.4 311.4
Other operating income 0.0 0.3 -88.5 0.2 0.3 -15.8 0.4
Materials and services 23.2 22.5 3.1 44.9 45.0 -0.2 89.4
Employee benefits expense 31.3 29.5 6.1 61.6 58.1 6.0 117.2
Depreciation, amortisation and
impairment 2.2 2.6 *) -12.2 4.5 4.8 -5.1 9.5
Other operating expenses 15.1 13.6 10.6 29.0 26.3 10.1 52.4
--------------------------------------------------------------------------------
OPERATING PROFIT 11.0 10.9 20.0 19.1 4.7 43.4
Finance income 0.8 0.2 340.4 1.0 0.4 145.5 1.5
Finance expenses 0.5 0.2 124.8 0.8 0.4 101.3 0.6
Share of profit of associated
companies 0.4 0.1 283.7 0.8 0.4 118.9 0.7
--------------------------------------------------------------------------------
PROFIT BEFORE TAX 11.8 11.0 7.3 21.1 19.5 7.8 45.0
--------------------------------------------------------------------------------
Income tax 3.0 3.1 -5.7 5.3 5.4 -2.2 11.8
--------------------------------------------------------------------------------
PROFIT FOR THE PERIOD 8.8 7.8 12.5 15.7 14.1 11.7 33.2
--------------------------------------------------------------------------------
OTHER COMPREHENSIVE INCOME
Change in translation differences -0.2 0.23 -204.8 -0.2 0.1 -283.3 0.6
Share of other comprehensive
income of associated companies -0.2 0.1 -255.0 -0.2 0.5 -133.2 0.9
Income tax relating to components
of other comprehensive income
--------------------------------------------------------------------------------
Other comprehensive income for
the period, net of tax -0.4 0.4 -192.2 -0.4 0.6 -166.6 1.5
--------------------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR
THE PERIOD 8.4 8.2 3.0 15.3 14.7 4.4 34.7
--------------------------------------------------------------------------------
Profit for the period
attributable to
Owners of the parent 8.4 7.7 15.0 14.0 32.8
Non-controlling interest 0.4 0.1 0.8 0.1 0.3
Total comprehensive income for the period
attributable to
Owners of the parent 8.0 8.1 14.6 14.6 34.4
Non-controlling interest 0.4 0.1 0.8 0.1 0.3
Earnings per share calculated from the
profit for the period
attributable to the parent company
shareholders
Earnings per share (basic), EUR 0.11 0.10 0.20 0.19 0.44
Earnings per share (diluted), EUR 0.11 0.10 0.20 0.19 0.44
BALANCE SHEET, MEUR Jun 31 2011 Jun 31 2010 31 Dec 2010
-------------------------------------------------------------------------------
ASSETS
NON-CURRENT ASSETS
Goodwill 30.5 29.3 30.4
Other intangible assets 10.4 10.6 10.5
Tangible assets 25.2 29.9 27.8
Investments in associated companies 33.9 31.2 33.6
Other non-current financial assets 8.5 5.2 11.8
Deferred tax assets 0.4 0.7 0.2
CURRENT ASSETS
Inventories 1.1 0.9 1.0
Current tax assets 2.0 0.3 3.5
Trade receivable and other receivables 27.7 23.0 27.0
Other current financial assets 3.1 0.6 2.3
Cash and cash equivalents 23.2 18.8 36.3
TOTAL ASSETS 166.1 150.5 184.5
-------------------------------------------------------------------------------
BALANCE SHEET, MEUR Jun 31 2011 Jun 31 2010 31 Dec 2010
-------------------------------------------------------------------------------
EQUITY AND LIABILITIES
Share capital 45.3 45.0 45.0
Share premium reserve 7.7 4.7 4.7
Foreign currency translation reserve 0.1 -0.2 0.4
Retained earnings 25.5 32.4 62.7
-------------------------------------------------------------------------------
Equity attributable to owners of the parent 78.6 82.0 112.8
Non-controlling interest 2.2 0.2 2.0
-------------------------------------------------------------------------------
TOTAL EQUITY 80.8 82.2 114.8
-------------------------------------------------------------------------------
LIABILITIES
NON-CURRENT LIABILITIES
Non-current interest-bearing liabilities 2.2 2.7 2.4
Deferred tax liabilities 2.4 2.9 2.4
Pension obligations 2.6 2.9 2.8
Provisions 0.1 0.2 0.1
Other financial liabilities 1.2 1.7 2.5
Other non-current liabilities 0.3 0.0 0.4
CURRENT LIABILITIES
Current interest-bearing liabilities 12.5 1.7 1.6
Advances received 23.4 23.3 13.4
Income tax liability 0.0 0.0 3.6
Provisions 1.1 0.4 0.6
Trade and other payables 39.5 32.7 39.9
-------------------------------------------------------------------------------
TOTAL LIABILITIES 85.3 68.4 69.7
-------------------------------------------------------------------------------
TOTAL EQUITY AND LIABILITIES 166.1 150.5 184.5
-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGE
IN EQUITY
Attributable to equity holders of the Parent
Company
| | |
MEUR A B C D| E| F| G
------------------------------------------------+-----+-------------------+-----
Equity Jan 1 2011 45.0 4.7 0.4 62.7|112.8| 2.0|114.8
------------------------------------------------+-----+-------------------+-----
Profit for the period 15.0| 15.0| 0.8| 15.7
| | |
Other comprehensive income -0.2 -0.2| -0.4| | -0.4
| | |
Transactions with equity | | |
holders of the parent and | | |
non-controlling interest | | |
| | |
Dividends paid by parent -52.4|-52.4| |-52.4
| | |
Dividends paid by | | |
subsidiaries | | -0.7| -0.7
| | |
Share-based payments 0.4| 0.4| | 0.4
| | |
Exercised share options 0.3 3.0 | 3.3| | 3.3
| | |
Share of items recognised | | |
directly in associated | | |
company's equity | | |
| | |
Business combinations | | 0.1| 0.1
------------------------------------------------+-----+-------------------+-----
Equity Jun 31 2011 45.3 7.7 0.1 25.5| 78.6| 2.2| 80.8
------------------------------------------------+-----+-------------------+-----
Attributable to equity holders of the Parent
Company
| | |
MEUR A B C D| E| F| G
------------------------------------------------+-----+-------------------+-----
Equity Jan 1 2010 44.8 2.8 -0.3 47.4| 94.7| 0.2| 94.9
------------------------------------------------+-----+-------------------+-----
Profit for the period 14.0| 14.0| 0.1| 14.1
| | |
Other comprehensive income 0.1 0.5| 0.6| | 0.6
| | |
Transactions with equity | | |
holders of the parent and | | |
non-controlling interest | | |
| | |
Dividends paid by parent -29.8|-29.8| |-29.8
| | |
Dividends paid by | | |
subsidiaries | | -0.2| -0.2
| | |
Share-based payments 0.3| 0.3| | 0.3
| | |
Exercised share options 0.3 1.9 | 2.1| | 2.1
| | |
Share of items recognised | | |
directly in associated | | |
company's equity | | |
| | |
Business combinations | | 0.1| 0.1
------------------------------------------------+-----+-------------------+-----
Equity Jun 31 2010 45.0 4.7 -0.2 32.4| 82.0| 0.2| 82.2
------------------------------------------------+-----+-------------------+-----
Column headings on Consolidated Statement
of Change in Equity
A=Share capital
B=Share premium reserve
C=Translation difference
D=Retained earnings
E=Total
F=Non-controlling interest
G=Equity total
2011 2010 2011 2010 2010
CASH FLOW STATEMENT, MEUR Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
--------------------------------------------------------------------------------
Operating activities
Profit for the period 8.8 7.8 15.7 14.1 33.2
Adjustments 4.9 5.0 9.0 9.1 20.3
Change in working capital -11.4 -2.0 8.4 12.1 5.3
Dividends received 0.2 0.8 0.3 0.9 1.0
Interest received 0.3 0.0 0.5 0.1 0.3
Interest paid and other finance expenses -0.3 -0.1 -0.5 -0.2 -0.7
Income taxes paid -4.0 -5.0 -7.5 -7.1 -13.2
--------------------------------------------------------------------------------
Net cash flow from operating activities -1.5 6.5 26.0 28.9 46.1
Investing activities
Acquisitions of tangible and intangible assets -0.9 -0.9 -1.5 -1.3 -3.3
Proceeds from sale of other investments 0.0 0.0 0.1 0.0 0.0
Change in loan receivables 0.0 0.0 0.0 0.0 0.1
Acquisition of subsidiaries 0.0 -1.2 0.1 -1.7 -2.3
Acquisition of associated companies 0.0 -0.2 -0.3 -0.3 -0.8
Proceeds from sale of subsidiaries 0.0 0.0 2.1 0.0 3.9
Proceeds from sale of associated companies 0.3 0.0 0.3 0.0 0.0
--------------------------------------------------------------------------------
Net cash flow from / (used in) investing activities -0.6 -2.3 0.7 -3.3 -2.4
Cash flow before financing activities -2.0 4.2 26.7 25.6 43.7
Financing activities
Proceeds from exercise of share options 2.7 2.1 3.3 2.1 2.1
Current loans taken 0.0 0.0 15.0 0.0 0.0
Repayment of current loans -4.4 -0.4 -4.7 -0.8 -1.6
Change in interest-bearing receivables 0.1 0.5 0.1 0.7 0.8
Dividends paid 0.0 0.0 -53.2 -30.0 -30.0
--------------------------------------------------------------------------------
Net cash flow from / (used in) financing activities -1.5 2.3 -39.5 -28.0 -28.6
Change in cash and cash equivalent funds (increase
+ / decrease -) -3.6 6.4 -12.8 -2.4 15.1
Cash and cash equivalents at beginning of period 26.8 12.3 36.3 21.1 21.1
Effect of change in foreign exchange rates 0.0 0.0 -0.3 1.0 0.2
Cash and cash equivalents at end of period 23.2 18.8 23.2 18.8 36.3
ACQUIRED BUSINESSES IN 2011
In February 2011 Alma Media acquired the majority (51%) of Mascus A/S in
Denmark.
The goodwill from the business combinations is mainly from the expected
synergies. No change in the fair values of the assets was recognised at the
acquisition. The acquisition had no major impact on the consolidated financial
statements.
CONTINGENT CONSIDERATIONS
Contingent considerations are classified as financial assets and liabilities
recognised at fair value through profit or loss. The amount of the contingent
considerations due to the acquisitions and business arrangements in 2010 is
based on the revenue and operating profits of the acquired business during
2010-2013. The fair values are the estimated final considerations discounted to
the balance sheet date. The minimum realisable value of the contingent
considerations is 0.2 MEUR.
CONTINGENT CONSIDERATION ASSETS
--------------------------------------------------------------------------------
Initial recognition of the assets 8.4
Change in fair value during previous financial years 0.8
Considerations, settled in cash -2.1
Change in fair value during the financial year 0.2
--------------------------------------------------------------------------------
Fair value of the contingent consideration assets in the end of the period 7.3
CONTINGENT CONSIDERATION LIABILITY
--------------------------------------------------------------------------------
Initial recognition of the liability 2.9
Change in fair value during previous financial years -0.1
Considerations, settled in cash -0.2
Change in fair value during the financial year 0.0
--------------------------------------------------------------------------------
Fair value of the contingent consideration liability in the end of the
period 2.6
REVENUE BY GEOGRAPHICAL AREA, 2011 2010 2011 2010 2010
MEUR Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
---------------------------------------------------------
Finland 79.1 75.6 152.8 146.6 298.4
Other EU countries 3.4 2.9 6.4 5.9 12.1
Other countries 0.3 0.2 0.6 0.5 0.8
---------------------------------------------------------
Total 82.7 78.7 159.8 153.1 311.4
INFORMATION BY SEGMENT
The business segments of Alma Media are Newspapers, Kauppalehti Group,
Marketplaces and Other operations. The descriptive section of the financial
statements presents the revenue and operating profits of the segments and the
allocation of the associated companies' results to the reporting segments.
The following table presents the assets and liabilities by segment as well as
the non-allocated asset and liability items.
ASSETS BY SEGMENT, MEUR Jun 31 2011 Jun 31 2010 31 Dec 2010
-------------------------------------------------------------------------
Newspapers 44.9 43.7 46.3
Kauppalehti Group 42.2 41.1 41.3
Marketplaces 24.4 13.2 21.7
Other operations 22.2 26.4 28.5
Non-allocated assets and eliminations 32.4 26.1 46.7
-------------------------------------------------------------------------
Total 166.1 150.5 184.5
LIABILITIES BY SEGMENT, MEUR Jun 31 2011 Jun 31 2010 31 Dec 2010
-------------------------------------------------------------------------
Newspapers 34.6 33.7 27.4
Kauppalehti Group 12.3 11.0 10.4
Marketplaces 8.0 5.1 7.7
Other operations 13.3 11.4 14.3
Non-allocated liabilities and 17.0 7.2 10.0
eliminations
-------------------------------------------------------------------------
Total 85.3 68.4 69.7
2011 2010 2011 2010 2010
CAPITAL EXPENDITURE, MEUR Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
-----------------------------------------------------
Newspapers 0.3 1.5 1.0 2.1 4.0
Kauppalehti Group 0.2 0.3 0.4 0.4 1.4
Marketplaces 0.7 -1.3 1.2 0.5 5.6
Others 0.2 2.4 0.4 2.9 1.8
-----------------------------------------------------
Total 1.4 3.0 2.9 5.9 12.9
-----------------------------------------------------
PROVISIONS
The company's provisions totalled MEUR 1.2 (0.5) on June 30, 2011. The major
part of the provisions are restructuring provisions. It has not been necessary
to change the estimates made when the provisions were entered.
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES, MEUR Jun 31 2011 Jun 31 2010 31 Dec 2010
--------------------------------------------------------------------------------
Other commitments
Commitments based on agreements 0.1 0.1 0.1
Minimum lease payments on other lease agreements:
Within one year 6.9 5.9 6.6
Within 1-5 years 23.4 13.1 21.1
After 5 years 46.1 25.0 48.2
--------------------------------------------------------------------------------
Total 76.4 44.0 75.9
The Group also has purchase agreements that based on
IFRIC 4
include a lease component as per IAS 17.
Minimum payments based on these agreements: 1.9 1.2
--------------------------------------------------------------------------------
Changes in commitments and contingencies are mainly due to the new and extended
lease contracts made during 2010 for the real estates.
Additionally, the company has signed a lease contract for the real estate of the
printing facility. According to the IAS 17 standard, the contract will be
recognised as a finance lease contract when the printing facility will be
operational. The printing facility is estimated to be operational in early
2013. The balance sheet values recognised in financial year 2013 are expected to
be maximum MEUR 70.
DERIVATIVE CONTRACTS, MEUR Jun 31 2011 Jun 31 2010 31 Dec 2010
--------------------------------------------------------------------------------
Commodity derivate contracts,
electricity
derivatives
Fair value * 0.1 0.1 0.3
Nominal value 1.3 1.0 1.0
--------------------------------------------------------------------------------
* 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 the major shareholders of the parent
company, associated companies and companies owned by them. Related parties also
include the company's senior management and their related parties (members of
the Board of Directors, presidents and the Group Executive Team). The following
table summarises the business operations undertaken between Alma Media and its
related parties and the status of their receivables and liabilities:
2011 2010 2011 2010 2010
RELATED PARTY TRANSACTIONS. MEUR Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
----------------------------------------------------------------------
Sales of goods and services 0.1 0.1 0.1 0.1 0.2
Purchases of goods and services 1.1 0.9 2.1 1.8 3.6
Trade receivable. loan and other
receivables at the end of reporting period 0.0 0.0 0.0
Trade payable at the reporting date 0.2 0.2 0.1 0.1
----------------------------------------------------------------------
OPTION RIGHTS
Alma Media has option programmes 2006 and 2009. The programmes are incentive and
commitment systems for the company's management.
The option programme 2006A has expired.
A total of 515,000 options were issued under the 2006B scheme. The share
subscription period for 2006B was April 1, 2009-April 30, 2011. A total of
434,330 shares were subscribed under the programme 2006B.
A total of 520,000 options have been issued under the 2006C programme. The share
subscription period for 2006C is April 1, 2010-April 30, 2012. The management
has 470,000 options in its possession. The share subscription price has been
reduced annually by the dividend per share, and was EUR 7.66 in June 2011. No
shares have been subscribed by June 30, 2011 under the programme 2006C.
If all subscription rights are exercised, the programme 2006 will dilute the
holdings of the earlier shareholders by 0.62%.
Under option programme 2009 a total of 2,130,000 stock options may be granted
during 2009-2011, and these may be exercised to subscribe to a maximum of
2,130,000 Alma Media shares. Of the total number of options, 710,000 were marked
2009A, 710,000 were marked 2009B and 710,000 were marked 2009C.
A total of 640,000 options have been issued under the 2009A programme. Share
subscription period for 2009A is April 1, 2012-March 31, 2014. The management
has 610,000 options in its possession. The share subscription price has been
reduced annually by the dividend per share, and was EUR 4.11 in June 2011.
A total of 610,000 options have been issued under the 2009B programme. Share
subscription period for 2009B is April 1, 2013-March 31, 2015. The management
has 610,000 options in its possession. The share subscription price has been
reduced annually by the dividend per share, and was EUR 6.63 in June 2011.
A total of 625,000 options have been issued under the 2009C programme. Share
subscription period for 2009C is April 1, 2014-March 31, 2016. The management
has 625,000 options in its possession. The share subscription price was EUR
7.95 in June 2011.
If all the subscription rights are exercised, the programmes 2006 and 2009 will
dilute the holdings of the earlier shareholders by 2.73% maximum.
QUARTERLY INFORMATION
| | | | | |
| 2011| 2011 2010 2010| 2010| 2010 2009 2009| 2009|
| | | | | |
MEUR | Q2| 1-3 10-12 7-9| Q2| 1-3 10-12 7-9| Q2|
-------------------------+-----+-----------------+-----+-----------------+-----+
Revenue | | | | | |
| | | | | |
Newspapers | 57.9| 53.8 58.1 53.5| 55.4| 52.2 55.9 51.7| 55.5|
| | | | | |
Kauppalehti Group | 15.0| 13.9 16.1 13.3| 14.4| 14.1 15.8 14.4| 16.2|
| | | | | |
Marketplaces | 9.5| 9.1 8.4 7.9| 8.2| 7.6 6.5 6.2| 7.0|
| | | | | |
Other operations | 20.7| 19.6 20.4 19.6| 19.3| 19.3 18.3 17.7| 18.4|
| | | | | |
Eliminations |-20.4|-19.3 -19.9 -19.0|-18.7|-18.8 -17.6 -17.0|-17.9|
-------------------------+-----+-----------------+-----+-----------------+-----+
REVENUE | 82.7| 77.1 83.0 75.2| 78.7| 74.4 79.0 73.0| 79.2|
-------------------------+-----+-----------------+-----+-----------------+-----+
Total expenses excluding | | | | | |
non-recurring items | | | | | |
| | | | | |
Newspapers | 48.8| 47.2 49.2 45.4| 46.5| 45.3 47.3 44.8| 46.2|
| | | | | |
Kauppalehti Group | 13.0| 12.7 14.4 10.9| 11.9| 12.5 13.9 12.3| 14.6|
| | | | | |
Marketplaces | 8.0| 7.7 8.4 7.0| 8.3| 7.6 6.8 6.1| 7.3|
| | | | | |
Other operations | 21.9| 19.6 19.9 17.7| 19.6| 19.5 17.4 15.4| 16.9|
-------------------------+-----+-----------------+-----+-----------------+-----+
TOTAL EXPENSES EXCLUDING | | | | | |
NON-RECURRING ITEMS | 71.2| 67.8 72.0 61.9| 67.7| 66.1 67.8 61.3| 67.2|
-------------------------+-----+-----------------+-----+-----------------+-----+
Operating profit | | | | | |
excluding non-recurring | | | | | |
items | | | | | |
| | | | | |
Newspapers | 9.2| 6.7 8.7 8.2| 9.2| 6.9 8.6 6.9| 9.4| | | | | | |
Kauppalehti Group | 2.0| 1.2 1.7 2.4| 2.5| 1.5 2.0 2.3| 1.6|
| | | | | |
Marketplaces | 1.6| 1.5 0.0 0.9| -0.1| 0.1 -0.3 0.2| -0.2|
| | | | | |
Other operations | -1.1| -0.1 0.5 1.9| -0.3| -0.3 1.0 2.4| 1.5|
-------------------------+-----+-----------------+-----+-----------------+-----+
OPERATING PROFIT | | | | | |
EXCLUDING NON-RECURRING | | | | | |
ITEMS | 11.5| 9.3 11.0 13.4| 11.3| 8.3 11.3 11.7| 12.2|
-------------------------+-----+-----------------+-----+-----------------+-----+
% of revenue | | | | | |
| | | | | |
Newspapers | 15.8| 12.4 15.0 15.3| 16.5| 13.3 15.4 13.4| 16.8|
| | | | | |
Kauppalehti Group | 13.1| 8.6 10.8 18.2| 17.3| 11.0 12.5 15.7| 9.6|
| | | | | |
Marketplaces | 16.3| 16.2 0.2 10.9| -1.5| 1.2 -4.5 2.4| -3.2|
| | | | | |
Other operations | -5.5| -0.3 2.3 9.7| -1.5| -1.4 5.2 13.4| 8.0|
-------------------------+-----+-----------------+-----+-----------------+-----+
% OF REVENUE | 14.0| 12.1 13.2 17.8| 14.3| 11.2 14.3 16.0| 15.3|
-------------------------+-----+-----------------+-----+-----------------+-----+
Non-recurring items | | | | | |
| | | | | |
Newspapers | 0.0| -0.5 -0.2 0.1| 0.0| -0.1 0.2 -0.4| -0.1|
| | | | | |
Kauppalehti Group | 0.0| 0.0 0.0 0.0| 0.0| 0.0 0.4 0.0| -0.1|
| | | | | |
Marketplaces | 0.0| 0.2 -0.1 0.3| -0.5| -0.1 -1.0 -0.1| 0.0|
| | | | | |
Other operations | -0.5| 0.0 0.0 -0.2| 0.2| 0.1 0.0 0.0| 0.0|
-------------------------+-----+-----------------+-----+-----------------+-----+
NON-RECURRING ITEMS | -0.5| -0.3 -0.3 0.2| -0.4| -0.1 -0.5 -0.5| -0.2|
-------------------------+-----+-----------------+-----+-----------------+-----+
Operating profit | | | | | |
| | | | | |
Newspapers | 9.2| 6.2 8.5 8.3| 9.2| 6.9 8.8 6.5| 9.2|
| | | | | |
Kauppalehti Group | 2.0| 1.2 1.7 2.4| 2.5| 1.5 2.3 2.3| 1.4|
| | | | | |
Marketplaces | 1.6| 1.6 0.0 1.1| -0.7| 0.0 -1.3 0.0| -0.2|
| | | | | |
Other operations | -1.7| -0.1 0.5 1.7| -0.1| -0.1 1.0 2.4| 1.5|
-------------------------+-----+-----------------+-----+-----------------+-----+
OPERATING PROFIT | 11.0| 9.0 10.7 13.6| 10.9| 8.2 10.8 11.0| 12.0|
-------------------------+-----+-----------------+-----+-----------------+-----+
Finance income | 1.0| 0.5 1.0 0.1| 0.2| 0.2 0.1 0.1| 0.2|
| | | | | |
Finance expenses | 0.8| -0.6 0.0 -0.3| -0.2| -0.2 -0.3 -0.2| -0.2|
| | | | | |
Share of profit of | | | | | |
associated companies | 0.4| 0.4 0.4 -0.1| 0.1| 0.3 0.1 -0.1| -0.4|
-------------------------+-----+-----------------+-----+-----------------+-----+
PROFIT BEFORE TAX | 11.8| 9.3 12.1 13.4| 11.0| 8.6 10.8 10.9| 11.5|
-------------------------+-----+-----------------+-----+-----------------+-----+
Income tax | -3.0| -2.4 -2.9 -3.5| -3.1| -2.3 -3.1 -3.2| -3.4|
-------------------------+-----+-----------------+-----+-----------------+-----+
PROFIT FOR THE PERIOD | 8.8| 6.9 9.2 9.8| 7.8| 6.3 7.7 7.7| 8.3|
-------------------------+-----+-----------------+-----+-----------------+-----+
MAIN ACCOUNTING PRINCIPLES (IFRS)
This interim report has been prepared according to IFRS standards (IAS 34). The
release applies the same accounting principles and calculation methods as the
annual accounts dated December 31, 2010, with the exception of the standards and
interpretations applied from January 2011 as listed below. The interim report
does not, however, 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 financial statements for 2010. The accounting
principles of the financial years 2011 and 2010 are comparable. The company has
no discontinued operations to report in the 2010-2011 financial periods.
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). The figures in this financial statement
release are independently rounded.
The Group has applied the following standards and interpretations from January
1, 2011:
IAS 24 Related Party Disclosures (revised)
IAS 32 Financial Instruments: Presentation: Classification of Right Issues
IFRIC 14 IAS 19 The Limit of a Defined Benefit Assets, Minimum Funding
Requirements and their Interaction
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments
The impact of the above new standards and IFRIC interpretations on the Group has
been marginal.
The figures in this interim report are unaudited.
SEASONALITY
The Group recognises its circulation revenues as paid. Therefore, 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 interim report for January-September 2011 on Friday,
October 28, 2011, approximately at 9 a.m.
ALMA MEDIA CORPORATION
Board of Directors
[HUG#1532821]
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