2011-07-21 08:00:00 CEST
2011-07-21 08:00:14 CEST
REGULATED INFORMATION
Talentum Oyj - Interim report (Q1 and Q3)
TALENTUM INTERIM REPORT JANUARY-JUNE 2011
Helsinki, Finland, 2011-07-21 08:00 CEST (GLOBE NEWSWIRE) -- TALENTUM OYJ
INTERIM REPORT 21 July 2011 at 9.00 am
TALENTUM INTERIM REPORT JANUARY-JUNE 2011
April-June 2011 in brief
- Talentum Group's net sales increased by 13.3%, totalling EUR 23.9 million
(EUR 21.1 million).
- Net sales from publishing increased by 16.3%, totalling EUR 22.5 million (EUR
19.4 million).
- The amount of media advertising in Talentum's media increased in both Finland
and Sweden by a total of 26.0%.
- Operating income (EBIT) EUR 0.6 million (EUR 0.5 million)
- Operating income without non-recurring items EUR 0.8 million (EUR 0.5 million)
January-June 2011 in brief
- Talentum Group's net sales increased by 17.4%, totalling EUR 47.5 million
(EUR 40.5 million).
- Net sales from publishing increased by 20.6%, totalling EUR 44.9 million (EUR
37.2 million).
- Operating income (EBIT) EUR 1.8 million (EUR 0.5 million)
- Operating income without non-recurring items EUR 2.0 million (EUR 0.5 million)
- Earnings per share EUR 0.03 (EUR 0.01)
- Net liabilities EUR 10.0 million (31 Dec 2010: EUR 12.4 million)
KEY FINANCIAL FIGURES
EUR million 4-6/ 4-6/ Change 1-6/ 1-6/ 1-12/
2011 2010 % 2011 2010 2010
--------------------------------------------------------------------------------
Net sales 23.9 21.1 13.3 47.5 40.5 81.0
--------------------------------------------------------------------------------
Operating income without 0.8 0.5 2.0 0.5 2.0
non-recurring items
--------------------------------------------------------------------------------
Operating income 0.6 0.5 19.7 1.8 0.5 0.3
--------------------------------------------------------------------------------
as % of net sales 2.5 2.3 3.8 1.2 0.3
--------------------------------------------------------------------------------
Net cash from operating 3.8 4.8 2.7
activities
--------------------------------------------------------------------------------
Total assets 63.7 57.1 64.7
--------------------------------------------------------------------------------
Investments 0.3 0.2 16.7 0.5 0.6 3.9
--------------------------------------------------------------------------------
as % of net sales 1.1 1.0 1.0 1.5 4.8
--------------------------------------------------------------------------------
Equity ratio % 34.9 38.3 34.4
--------------------------------------------------------------------------------
Gearing ratio % (net debt to 58.0 46.7 70.9
equity)
--------------------------------------------------------------------------------
Interest-bearing liabilities 13.0 9.9 13.9
--------------------------------------------------------------------------------
Net interest-bearing 10.0 7.9 12.4
liabilities
--------------------------------------------------------------------------------
Personnel on average 829 779 787
--------------------------------------------------------------------------------
Earnings per share, EUR 0.01 0.01 -13.4 0.03 0.01 0.00
--------------------------------------------------------------------------------
Cash flow from operating 0.04 0.05 -6.7 0.09 0.11 0.06
activities per share, EUR
--------------------------------------------------------------------------------
Equity per share, EUR 0.39 0.38 0.40
--------------------------------------------------------------------------------
Market capitalization on 81.6 79.4 86.4
closing rate at period end
--------------------------------------------------------------------------------
Sector and Talentum prospects for 2011
Activity among Talentum's customers increased in 2010 and the increase
continued during the first half of 2011. This was evident in Talentum's
improved sales figures in both Finland and Sweden.
Talentum keeps the prospects for the whole year unchanged and estimates that,
in 2011, its net sales will grow and operating income will improve.
CHIEF EXECUTIVE OFFICER - JUHA BLOMSTER:
“The general economic situation in Europe has created uncertainty and jitters
in the media sector as well. This uncertainty has been further fuelled by the
Finnish government's decision to raise VAT on subscription magazines.
Talentum Group's net sales for the second quarter increased by 13 per cent and
net sales from publishing operations increased by 16 per cent. Without the
event business acquired in September 2010 and at comparable exchange rates,
consolidated net sales increased by 1 per cent. The consolidated operating
income was EUR 0.6 million, an increase of 20 per cent with respect to the same
period last year.
Talentum's magazine business continued to develop favourably in both Finland
and Sweden, and so did the construction information business. In April-June,
Talentum's advertising revenue grew by 26 per cent from the same period in the
previous year. Growth was brought about especially by job advertising.
Circulation revenue increased by 4 per cent. Other content revenue increased by
18 per cent, which all came from the event business acquired last year. Other
content revenue includes books, training, events and business information.
Long-term cooperation between Tekniikka & Talous (T&T) and a major subscriber
will end at the beginning of 2012. The circulation of the magazine will
decrease. However, work has begun on building new, profitable circulation.
Development work at T&T, which began at the start of the year, will be
continued with the aim of providing readers and customers with good journalism
and interesting services.
Sectoral surveys indicate that the position of Talentum's biggest media - both
printed and online - is strong. The smaller magazines, too, have a strong
position within their respective target groups. Talentum will continue to
invest in developing its brands in order to improve their market position and
profitability.”
Operating environment and seasonal variation
The Finnish economy experienced a strong recovery in 2010. Forecasts for GDP
development this year are approximately 3%. Estimates of the general economic
climate in Sweden continue to be more positive than in Finland, and most
estimates put GDP growth in 2011 at around 4-5%.
According to TNS Media Intelligence, spending on media advertising for
January-May grew by 14% in Finland, with advertising in periodicals seeing
growth of 6.4%. Online advertising revenues increased by 34.3%. In Sweden,
total media advertising revenues rose by 14.9% for January-May; the increase
was 18% in professional journals and 8.8% online (Sweden's Media Agencies -
Sveriges Mediebyråer). Market figures for media advertising in June are not
available.
Talentum's assessment is that the information needs of its professional target
groups will remain high, irrespective of the economic situation. Professionals
have a wide range of channels to choose from when searching for information,
including books, training, seminars, magazines and online services. Their
preferences as to which channel they use may change. Talentum produces quality
content for those channels where it can best serve its customers.
The media and media service markets are subject to seasonal variations. Whether
the Easter holiday falls in the first or second quarter of the year affects the
results in that quarter. In the year of comparison, Easter fell at the
beginning of the second quarter. Magazines and books do not generally come out
during the summer holiday season, which is why the third quarter is the weakest
in terms of sales. Profit for the third period is almost always negative.
Operations are generally at their busiest in the final quarter.
Consolidated net sales and profit for April-June 2011
Consolidated net sales for April-June increased by 13.3%, totalling EUR 23.9
million (EUR 21.1 million). Excluding corporate acquisitions and at comparable
exchange rates, net sales increased by 0.5%. The strengthening of the Swedish
krona against the euro improved net sales by EUR 0.7 million. Net sales from
publishing operations increased by 16.3%, totalling EUR 22.5 million (EUR 19.4
million). Advertising sales rose by 26.0%.
The consolidated operating income for April-June was EUR 0.6 million (EUR 0.5
million), 2.5% (2.3%) of net sales. The strengthening of the Swedish krona
against the euro improved operating income by EUR 0.0 million. Amortisation of
intangible assets relating to corporate acquisitions amounted to EUR 0.2
million (EUR 0.3 million). The operating income from publishing operations was
EUR 1.4 million (EUR 0.9 million).
The Group's expenses decreased by approximately 1.6%, which equals EUR 0.3
million, with respect to the same period in the previous year (with comparable
exchange rates). This comparison does not include the event business acquired
in September 2010.
Net financial expenses amounted to EUR 0.1 million (EUR 0.0 million). The
Group's share of the income of associated companies was EUR 0.1 million (EUR
0.1 million).
Income before taxes was EUR 0.6 million (EUR 0.6 million). The Group's taxes
for the period under review were EUR -0.3 million (EUR -0.2 million). The
consolidated income for April-June was EUR 0.4 million (EUR 0.4 million).
Consolidated net sales and profit for January-June 2011
Consolidated net sales for January-June increased by 17.4%, totalling EUR 47.5
million (EUR 40.5 million). Without corporate acquisitions and at comparable
exchange rates, net sales increased by 2.0%. The strengthening of the Swedish
krona against the euro improved net sales by EUR 1.8 million. Net sales from
publishing operations increased by 20.6%, totalling EUR 44.9 million (EUR 37.2
million). Advertising sales rose by 26.2%.
The consolidated operating income for January-June was EUR 1.8 million (EUR 0.5
million) and 3.8% of net sales (1.2%). The strengthening of the Swedish krona
against the euro improved operating income by EUR 0.1 million. Amortisation of
intangible assets relating to corporate acquisitions amounted to EUR 0.4
million (EUR 0.3 million). The operating income from publishing operations was
EUR 3.0 million (EUR 1.1 million).
The Group's expenses decreased by approximately 2.0%, which equals EUR 0.8
million, with respect to the same period in the previous year (with comparable
exchange rates). This comparison does not include the event business acquired
in September 2010.
Net financial expenses amounted to EUR 0.2 million (EUR -0.3 million). The
Group's share of the income of associated companies was EUR 0.1 million (EUR
0.0 million).
Income before taxes was EUR 1.7 million (EUR 0.8 million). The Group's taxes
for the period under review were EUR -0.5 million (EUR -0.1 million). The
effective tax rate for the period under review was 31.7% (18.0%). The
consolidated income for the period under review was EUR 1.1 million (EUR 0.6
million).
Short-term risks for the business
With the growth of the Group's international operations, the consolidated
profit and loss account and balance sheet are increasingly exposed to the
effects of exchange rate fluctuations. Net sales from Publishing Other Nordic
countries for the period under review amounted to 47% (49%) of the total net
sales of publishing operations. The share of the balance sheet total
attributable to Publishing Other Nordic countries was 46% (49%). The companies'
operations are local and language-area-bound by nature, and there are very few
currency-denominated transactions. The profit and loss account and balance
sheet have not been hedged against exchange rate fluctuations.
The changes in general economic growth will affect Talentum's revenue and
revenue structure. Traditionally, about 40% of consolidated net sales are
dependent on advertising, particularly in the B2B sector, which is sensitive to
economic conditions. In present economic conditions, the share of advertising
is about 36% (33%) of net sales. The most economically sensitive component of
advertising revenue is job advertising.
The aim is to minimise the market risk relating to advertising by increasing
revenue from circulation and content sales. The goal is for all Talentum
products and services to be market leaders in their fields, so that success is
possible even in recession.
Online services are a factor that could change the earnings logic of magazines
and books temporarily, or even in the long term. This channel selection could
be significant for the Group's revenue structure. The move from printed
products to online products may be particularly rapid under poor economic
conditions. If the company is unable to develop its operations to respond to
changes in media usage habits, its competitiveness could be undermined.
The Finnish government's decision to raise VAT on subscription magazines to 9
per cent will have, if implemented, a significant impact on Talentum. However,
Talentum will be affected to a lesser extent than many other Finnish
publishers. About half of Talentum's net sales from publishing operations
originate in Sweden, and the proportion of total revenue attributable to
subscription fees is about 30 per cent of total revenue from publishing
business. The taxation of magazine subscriptions, however, requires that the
Value-Added Tax Act be amended. No timetable has been set for this change as of
yet.
Long-term cooperation between Tekniikka & Talous and a major group subscriber
will end at the beginning of 2012. The circulation of the magazine will
decrease. However, work has begun on building new, profitable circulation. The
termination of the agreement will reduce the magazine's circulation revenue
from the start of 2012, and it may temporarily affect advertising sales if the
circulation does not improve as planned.
At year-end 2010 it was noticed that there is a risk of impairment in Talentum
HR. Its performance is monitored closely and an impairment test will be
performed if necessary.
The Group's risk management principles are set out in the 2010 Annual Report,
which was published on 10 March 2011.
Cash flow, financial position and balance sheet for the Group
The cash flow from business operations in January-June was lower than in the
previous year following the change in working capital. Net cash flow from
business operations was EUR 3.8 million (EUR 4.8 million). The change in
working capital was EUR 1.8 million (EUR 3.2 million). Working capital is
negative, as is usual for the sector, because liabilities include subscription
fee advances received from customers of EUR 14.2 million (for balance sheet
items, the comparison date is 31 December 2010: EUR 13.7 million).
The consolidated balance sheet total at the end of the period under review
stood at EUR 63.7 million (EUR 64.7 million). The Group's interest-bearing
loans and borrowing amounted to EUR 13.0 million (EUR 13.9 million). The
Group's liquid assets were EUR 2.9 million (EUR 1.5 million). Interest-bearing
net liabilities were EUR 10.0 million (EUR 12.4 million).
The available bank overdraft limit is EUR 14 million, and the available
financing credit limit is EUR 22 million. About half of the limits are valid
for three years and the other half for four years.
EUR 9.5 million of the limits was used at the end of the period under review.
In addition, the Group has a commercial paper programme of EUR 30 million, of
which EUR 0.0 million was used at the end of the period under review.
The equity ratio at the end of the period under review was 34.9% (34.4%). The
Group's equity per share was EUR 0.39 (EUR 0.40). The Group does not hedge
against currency fluctuations with regard to the acquisition of subsidiaries.
The weakening or strengthening of the Swedish krona against the euro affects
the Group's equity through the translation difference arising from the
acquisition of the Swedish subsidiaries. On 30 June 2011, the translation
difference in the Group's equity was EUR 0.0 million. The change for
January-June was EUR 0.5 million (negative).
Investments
No significant investments took place at Talentum Group in the period under
review.
Changes in Group structure
No changes in Group structure occurred in the period under review.
Personnel
In January-June, Talentum Group employed an average of 829 (779) people: 314
(334) in direct marketing and 515 (445) in publishing and in the parent
company. Geographically, the personnel were divided as follows: Finland 414
people (391), Sweden 235 (220), Norway 8 (9), Denmark 9 (0), Latvia 72 (70),
Estonia 82 (85) and Russia 8 (5). The event business acquired in September 2010
increased the number of employees by 46 at the time of acquisition. The event
business also increased the number of employees in Denmark and Sweden.
BUSINESS AREAS
EUR million 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2011 2010 2011 2010 2010
--------------------------------------------------------------------------------
Net sales
--------------------------------------------------------------------------------
Publishing Finland 11.9 10.0 23.6 19.1 39.2
--------------------------------------------------------------------------------
Publishing other Nordic Countries 10,7 9.4 21.3 18.1 35.5
--------------------------------------------------------------------------------
Direct marketing 2.3 2.4 4.4 4.7 8.8
--------------------------------------------------------------------------------
Other -0.9 -0.7 -1.8 -1.4 -2.6
--------------------------------------------------------------------------------
Total 23.9 21.1 47.5 40.5 81.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating income without
non-recurring items
--------------------------------------------------------------------------------
Publishing Finland 0.9 0.5 1.8 0,5 1.4
--------------------------------------------------------------------------------
Publishing other Nordic Countries 0.5 0.4 1.3 0.6 1.9
--------------------------------------------------------------------------------
Direct marketing 0.2 0.2 0.5 0.5 0.9
--------------------------------------------------------------------------------
Other -0.9 -0.6 -1.6 -1.1 -2.1
--------------------------------------------------------------------------------
Total 0.8 0.5 2.0 0.5 2.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Non-recurring items
--------------------------------------------------------------------------------
Publishing Finland - - - - 0.0
--------------------------------------------------------------------------------
Publishing other Nordic Countries -0.1 - -0.1 - -1.5
--------------------------------------------------------------------------------
Direct marketing - - - - 0.0
--------------------------------------------------------------------------------
Other -0.1 - -0.1 - -0.3
--------------------------------------------------------------------------------
Total -0.2 - -0.2 -1.8
--------------------------------------------------------------------------------
Operating income 0.6 - 1.8 - 0.3
--------------------------------------------------------------------------------
Non-recurring items include expenses of EUR 0.2 million related to personnel
reduction.
Publishing
April-June
Net sales from publishing operations for April-June amounted to EUR 22.5
million (EUR 19.4 million), a change of 16.3% from the previous year. Of net
sales from publishing operations, 53% (52%) originated in Finland and the
remaining 47% (48%) originated in the other Nordic countries.
In April-June, advertising revenue increased by 26.0% from the previous year.
The proportion of total advertising revenue in net sales from publishing
operations was 39% (36%).
Net sales from e-business for April-June increased by 6.9%. Net sales from
e-business were EUR 4.1 million (EUR 3.9 million), which corresponds to 18%
(20%) of the total figure for publishing.
January-June
Net sales from publishing operations for January-June amounted to EUR 44.9
million (EUR 37.2 million), a change of 20.6% from the previous year. Of net
sales from publishing operations, 53% (51%) originated in Finland and the
remaining 47% (49%) originated in the other Nordic countries.
In January-June, advertising revenue increased by 26.2% from the previous year.
The proportion of total advertising revenue in net sales from publishing
operations was 38% (36%).
Net sales from e-business for January-June increased by 12.6%. Net sales from
e-business were EUR 8.3 million (EUR 7.4 million), which corresponds to 18%
(20%) of the total figure for publishing.
PUBLISHING REVENUE
EUR million 4-6/ 2011 4-6/ 2010 1-6/ 2011 1-6/ 2010 1-12/ 2010
-------------------------------------------------------------------------------
Net sales
-------------------------------------------------------------------------------
Advertisement revenue 8.8 7.0 16.9 13.4 27.0
-------------------------------------------------------------------------------
Circulation revenue 7.0 6.7 13.6 12.8 23.8
-------------------------------------------------------------------------------
Other content revenue * 6.7 5.7 14.4 11.0 23.9
-------------------------------------------------------------------------------
Total 22.5 19.4 44.9 37.2 74.8
-------------------------------------------------------------------------------
* ‘Other content revenue' includes books, events, training and information
services.
Publishing Finland
In the Publishing Finland segment, financial development is reported for
periodicals, book publishing, training and the event business. The best known
book in the book publishing business is the green Suomen Laki (Finnish Law)
book. The magazines with the highest circulation are Talouselämä and Tekniikka& Talous.
The event business of IIR Finland Oy (now Talentum Events Oy), which was
acquired in September 2010, has belonged to this segment since the acquisition
(15 September 2010).
April-June
Net sales from publishing operations in Finland for April-June amounted to EUR
11.9 million (EUR 10.0 million), an increase of 18.5% from the previous year.
Excluding the event business acquired in September 2010, net sales increased by
3.7%. Advertising revenue was up 31.4% on the previous year.
Talentum's operating income from publishing operations in Finland was EUR 0.9
million (EUR 0.5 million). The operating income was affected by the EUR 0.1
million (-) amortisation of intangible assets relating to corporate
acquisitions.
The Union of Professional Engineers in Finland (UIL), a major long-term
subscriber to Tekniikka & Talous, terminated its agreement and will no longer
subscribe to the magazine on behalf of its members in 2012. The termination of
the agreement will not affect Talentum's performance in 2011. It is estimated
that the impact of the discontinuation of the order, which amounted to some
40,000 magazines, will be worth approximately EUR 0.3 million in 2012. Talentum
will continue to develop Tekniikka & Talous in order to provide good service to
its readers and to increase the free circulation of the magazine.
In the second quarter, Talentum's Finnish online media business grew faster
than the market. Taking ‘unique visitors per week' as the indicator, the
magazines with the highest increase in average audience compared to the same
period of last year were Talouselämä (+119%), Tekniikka & Talous (+51%) and
Tietoviikko (+45%). The positive development is based on more active content
production and new editorial guidelines. In particular, Talouselämä made
significant investments in its own online news production at the beginning of
the year.
Talentum built new interlinking elements for its online services. This resulted
in a significant increase in the number of internal visits to the network. In
May-June, the number of web page hits is traditionally increased by the annual
Talouselämä 500 and Tivi 250 surveys of Finland's largest companies.
Talentum's magazines and online services fared well in the TNS Decision-Makers'
Atlas 2011 survey. Talouselämä is the best business magazine in terms of its
ability to reach decision-makers. A total of 166,000 decision-makers read it,
which is 11 per cent more than in the previous survey. The number of
decision-makers who read Tekniikka & Talous increased by 19,000, reaching a
total of 93,000. The number of decision-makers who read Arvopaperi increased by
22%; the increase was 13% for Fakta and 10% for MikroPC. The number of
decision-makers currently stands at 33,000 for Arvopaperi, 36,000 for Fakta and
44,000 for MikroPC.
Digitaalinen jalanjälki (Digital Footprint), a book by Isokangas and Vassinen
published by Talentum, won the Kultasulka (Golden Feather)2011 award. This
award is the highest available at the Kultasulka writing contest, organised by
the Finnish Association of Marketing Communication Agencies.
January-June
Net sales from publishing operations in Finland for January-June amounted to
EUR 23.6 million (EUR 19.1 million), a change of 23.3% from the previous year.
Excluding the event business acquired in September 2010, net sales increased by
5.2%. Advertising revenue was up 23.5% on the previous year.
Talentum's operating income from publishing operations in Finland was EUR 1.8
million (EUR 0.5 million). The operating income was affected by the EUR 0.1
million (-) depreciation of intangible assets relating to corporate
acquisitions.
Publishing Other Nordic Countries
In the Publishing Other Nordic Countries segment, financial development is
reported for periodicals, the event business and the business information
business. The magazines with the highest circulation are Ny Teknik and
Affärsvärlden. The largest providers of business information are Sverige Bygger
and Talentum HR.
Talentum Events Oy's operations in Sweden and Denmark have been reported under
this segment since 15 September 2010.
April-June
Net sales from Publishing Other Nordic Countries for April-June amounted to EUR
10.7 million (EUR 9.4 million), a change of 13.9% from the previous year.
Without the event business acquired in September 2010 and at comparable
exchange rates, net sales increased by 0.9%. Changes in exchange rates
increased net sales by EUR 0.7 million. Advertising revenue was up 21.4% on the
previous year.
Talentum's operating income from Publishing Other Nordic countries was EUR 0.5
million (EUR 0.4 million). The operating income was affected by the EUR 0.1
million (0.3) depreciation of intangible assets relating to corporate
acquisitions.
The Swedish magazine business invested especially in product development for
the Ny Teknik and Affärsvärlden magazines as well as in strengthening the
brand. Affärsvärlden published the Platinum supplement, which reprises the
Talouselämä Platinum concept. The chances of success of the supplement will be
assessed on the grounds the first issue.
The Teknikhistoria magazine by Ny Teknik has obtained over 12,400 subscribers.
In addition to this, its newsstand sales amount to about 2,000 copies.
Based on the Orvesto Näringsliv 2011 study, the number of decision-makers who
read the Affärsvärlden magazine increased by 15.5% compared to the same period
of the previous year. According to the same study, the Ny Teknik magazine fared
better than its competitors, and it is read by 168,000 decision-makers.
January-June
Net sales from Publishing Other Nordic countries for January-June amounted to
EUR 21.3 million (EUR 18.1 million), a change of 17.8% from the previous year.
Excluding the event business acquired in September 2010 and at comparable
exchange rates, net sales increased by 2.5%. Changes in exchange rates
increased net sales by EUR 1.8 million. Advertising revenue was up 28.6% on the
previous year.
Talentum's operating income from Publishing Other Nordic countries was EUR 1.2
million (EUR 0.6 million). The operating income was affected by the EUR 0.3
million (0.3) amortisation of intangible assets relating to corporate
acquisitions, and weak performance by Talentum HR concentrating on HR business
information.
Direct Marketing
In the Direct Marketing segment, financial development is reported for the
business of Talentum's subsidiary Suoramarkkinointi Mega Oy in Finland and the
Baltic countries. The company operates in the telemarketing business.
April-June
Net sales from direct marketing for April-June amounted to EUR 2.3 million (EUR
2.4 million), and the operating income was EUR 0.2 million (EUR 0.2 million).
January-June
Net sales from direct marketing for January-June amounted to EUR 4.4 million
(EUR 4.7 million), and the operating income was EUR 0.5 million (EUR 0.5
million).
TALENTUM GROUP
Shares and share capital
On 30 June 2011, Talentum Oyj's share capital totalled EUR 18,593,518.79 and
the company had 44,295,787 fully paid shares. The shares are listed on the
NASDAQ OMX Helsinki stock exchange.
A total of 4,438,867 Talentum shares were traded in January-June, which
corresponds to 10.0% of all shares. The highest price paid for shares in
January-June was EUR 2.16, and the lowest was EUR 1.80. The closing price for
the shares on 30 June 2011 was EUR 1.87.
On 30 June 2011, the company held 681,000 of its own shares, which is about
1.5% of Talentum's total shares and votes.
Shareholdings of the Board of Directors and CEO
On 30 June 2011, the number of Talentum Oyj shares and options owned by members
of the Board of Directors and the CEO, personally or through companies in which
they have a controlling interest, was 17,850, representing 0.04% of the
company's total shares and votes.
Flagging notifications
On 9 June 2011, OP-Pohjola Group Central Cooperative notified Talentum Oyj that
the combined proportion in the company of the shares held by the investments
funds managed by OP-Pohjola and its affiliates and subsidiaries had exceeded
five per cent of all shares and votes on 8 June 2011. According to the
notification, the holding amounted to 2,693,416 shares, which corresponds to
6.081% of all shares and votes.
On 13 June 2011, OP Fund Management Company Ltd notified Talentum Oyj that as
of 13 June 2011, OP-Pohjola Group Central Cooperative, the parent company of OP
Fund Management Company Ltd, applies the exemption referred to in Article 2(4)
of Ministry of Finance Decree 154/2007 with respect to OP Fund Management
Company Ltd. As of 13 June 2011, OP-Pohjola Group Central Cooperative does not
combine its own holdings and those of its subsidiaries and affiliates with the
holdings of the investment funds or UCITS managed by OP Fund Management Company
Ltd. OP Fund Management Company Ltd uses the voting rights related to the
holdings of its investment funds or UCITS independently from the parent
company. According to the notification, the holding of the OP Fund Management
Company Ltd, OP-Finland Small Firms Fund amounted to 2,629,816 shares, which
corresponds to 5.937% of all shares and votes.
On 13 June 2011, OP-Pohjola Group Central Cooperative notified Talentum Oyj
that as of 13 June 2011, it applies the exemption referred to in Article 2(4)
of Ministry of Finance Decree 154/2007 with respect to OP Fund Management
Company Ltd. As of 13 June 2011, OP-Pohjola Group Central Cooperative does not
combine its own holdings and those of its subsidiaries and affiliates with the
holdings of the investment funds or UCITS managed by OP Fund Management Company
Ltd as OP Fund Management Company Ltd uses the voting rights related to the
holdings of its investment funds or UCITS independently from the parent
company. Due to this, the combined share of the holdings and voting rights of
OP-Pohjola and its affiliates and subsidiaries went below the 5% limit. The
holding of the OP Pohjola, OP-Pohjola Group Research Foundation amounted to
63,000 shares, which corresponds to 0.144% of all shares and votes.
Changes in Group management
Talentum Oyj's Chief Executive Officer Juha Blomster resigned on 16 June 2011
to start working for another employer in the autumn of 2011. The Board of
Directors has started the recruitment process in order to find a new CEO.
Niclas Köhler, M.Sc. (Econ.) was appointed Talentum's Chief Financial Officer
and member of the executive team. He started in his new role on 9 May 2011.
TABLES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR million 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2011 2010 2011 2010 2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales 23.9 21.1 47.5 40.5 81.0
--------------------------------------------------------------------------------
Other operating income 0.1 0.1 0.1 0.3 0.7
--------------------------------------------------------------------------------
Materials and services 3.7 3.4 7.1 6.8 13.3
--------------------------------------------------------------------------------
Employee benefit expenses 11.6 10.8 23.2 21.4 42.8
--------------------------------------------------------------------------------
Depreciation, amortisation and 0.6 0.8 1.1 1.3 2.5
impairment
--------------------------------------------------------------------------------
Other operating expenses 7.5 5.6 14.4 10.8 22.8
--------------------------------------------------------------------------------
Operating income 0.6 0.5 1.8 0.5 0.3
--------------------------------------------------------------------------------
Financial income 0.0 0.1 0.0 0.5 1.3
--------------------------------------------------------------------------------
Financial expenses 0.1 0.2 0.2 0.3 1.5
--------------------------------------------------------------------------------
Share of income of associated 0.1 0.1 0.1 0.0 0.0
companies
--------------------------------------------------------------------------------
Income before taxes 0.6 0.6 1.7 0.8 0.1
--------------------------------------------------------------------------------
Taxes -0.3 -0.2 -0.5 -0.1 0.0
--------------------------------------------------------------------------------
Income for the period 0.4 0.4 1.1 0.6 0.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other comprehensive income:
--------------------------------------------------------------------------------
Translation differences -0.5 0.4 -0.5 1.4 2.7
--------------------------------------------------------------------------------
Available-for-sale investments - - - - -0.0
--------------------------------------------------------------------------------
Income tax on available-for-sale - - - - 0.0
investments
--------------------------------------------------------------------------------
Total comprehensive income for the -0.1 0.8 0.7 2.1 2.9
period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income for the period attributable
to:
--------------------------------------------------------------------------------
Owners of the parent company 0.3 0.4 1.1 0.6 0.2
--------------------------------------------------------------------------------
Non-controlling interest 0.0 0.0 0.0 0.0 -0.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total comprehensive income for the
period attributable to:
--------------------------------------------------------------------------------
Owners of the parent company -0.1 0.8 0.7 2.1 2.9
--------------------------------------------------------------------------------
Non-controlling interest 0.0 0.0 0.0 0.0 -0.0
--------------------------------------------------------------------------------
Basic and diluted Earnings per 0.01 0.01 0.03 0.01 0.00
share, EUR*
--------------------------------------------------------------------------------
* Earnings per share are calculated from the income attributed to the equity
owners of the parent company.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR million 30.6.2011 30.6.2010 31.12.2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------------
Non-current assets
--------------------------------------------------------------------------------
Property, plant and equipment 1.2 1.2 1.2
--------------------------------------------------------------------------------
Goodwill 31.1 28.0 31.7
--------------------------------------------------------------------------------
Other intangible assets 13.5 14.2 14.5
--------------------------------------------------------------------------------
Investments in associates 0.2 0.2 0.1
--------------------------------------------------------------------------------
Available-for-sale investments 0.1 0.1 0.1
--------------------------------------------------------------------------------
Deferred tax assets 1.8 1.8 1.8
--------------------------------------------------------------------------------
Other non-current receivables 1.6 0.2 1.8
--------------------------------------------------------------------------------
Total non-current assets 49.4 45.8 51.2
--------------------------------------------------------------------------------
Current assets
--------------------------------------------------------------------------------
Inventories 1.1 1.3 1.1
--------------------------------------------------------------------------------
Trade and other receivables 10.2 8.0 10.9
--------------------------------------------------------------------------------
Cash and cash equivalents 2.9 2.1 1.5
--------------------------------------------------------------------------------
Total current assets 14.3 11.3 13.5
--------------------------------------------------------------------------------
TOTAL ASSETS 63.7 57.1 64.7
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES
--------------------------------------------------------------------------------
Equity attributable to equity owners of the
parent
--------------------------------------------------------------------------------
Share capital 18.6 18.6 18.6
--------------------------------------------------------------------------------
Treasury shares -2.8 -2.8 -2.8
--------------------------------------------------------------------------------
Other reserves 0.1 -0.8 0.5
--------------------------------------------------------------------------------
Invested non-restricted equity fund 2.4 3.3 3.3
--------------------------------------------------------------------------------
Retained earnings -1.1 -1.6 -2.2
--------------------------------------------------------------------------------
Total 17.2 16.7 17.4
--------------------------------------------------------------------------------
Non-controlling interest 0.1 0.1 0.1
--------------------------------------------------------------------------------
Total equity 17.3 16.8 17.5
--------------------------------------------------------------------------------
Non-current liabilities
--------------------------------------------------------------------------------
Deferred tax liabilities 3.7 3.7 3.8
--------------------------------------------------------------------------------
Non-current financial liabilities 0.1 0.1 0.1
--------------------------------------------------------------------------------
Pension obligation 0.1 0.1 0.1
--------------------------------------------------------------------------------
Other non-current liabilities 1.7 0.5 1.7
--------------------------------------------------------------------------------
Non-current provisions 0.2 0.2 0.3
--------------------------------------------------------------------------------
Total non-current liabilities 5.8 4.6 6.0
--------------------------------------------------------------------------------
Current liabilities
--------------------------------------------------------------------------------
Current financial liabilities 12.8 9.8 13.8
--------------------------------------------------------------------------------
Advances received 14.2 13.1 13.7
--------------------------------------------------------------------------------
Trade and other payables 13.5 12.7 13.6
--------------------------------------------------------------------------------
Currents provisions - 0.1 0.1
--------------------------------------------------------------------------------
Total current liabilities 40.6 35.6 41.1
--------------------------------------------------------------------------------
TOTAL EQUITY AND LIABILITIES 63.7 57.1 64.7
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH FLOW
EUR million 1-6/ 1-6/ 1-12/
2011 2010 2010
--------------------------------------------------------------------------------
Cash flow from operating activities
--------------------------------------------------------------------------------
Operating income 1.8 0.5 0.3
--------------------------------------------------------------------------------
Adjustments to operating income 1.1 0.9 1.7
--------------------------------------------------------------------------------
Change in working capital 1.8 3.2 0.4
--------------------------------------------------------------------------------
Financial items and taxes -1.0 0.1 0.4
--------------------------------------------------------------------------------
Net cash from operating activities 3.8 4.8 2.7
--------------------------------------------------------------------------------
Cash flow from investing activities
--------------------------------------------------------------------------------
Acquisition of subsidiaries and associates, net of - - -2.5
cash acquired
--------------------------------------------------------------------------------
Disposal of subsidiaries and associates - - 0.3
--------------------------------------------------------------------------------
Acquisition of property, plant and equipment and -0.5 -0.6 -1.1
intangible assets
--------------------------------------------------------------------------------
Net cash from investing activities -0.5 -0.6 -3.3
--------------------------------------------------------------------------------
Cash flow from financing activities
--------------------------------------------------------------------------------
Change in current loans -1.0 -6.0 -1.8
--------------------------------------------------------------------------------
Repayment of non-current loans - - -0.2
--------------------------------------------------------------------------------
Dividends paid and other return of equity -0.9 - 0.0
--------------------------------------------------------------------------------
Net cash used in financing activities -1.8 -6.0 -2.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in cash and cash equivalents 1.4 -1.9 -2.5
--------------------------------------------------------------------------------
Cash and cash equivalents at the beginning of 1.5 3.7 3.7
period
--------------------------------------------------------------------------------
Foreign exchange adjustment 0.0 0.2 0.3
--------------------------------------------------------------------------------
Net change in cash and cash equivalents 1.4 -1.9 -2.5
--------------------------------------------------------------------------------
Cash and cash equivalents at the end of period 2.9 2.1 1.5
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
a = Share capital f = Retained earnings
b = Treasury shares g = Equity attributable to equity owners of the parent
c = Fair value reserve (before non-controlling interest)
d = Translation reserve h = Non-controlling interest
e = Invested i = Total equity
non-restricted equity
fund
--------------------------------------------------------------------------------
EUR million a b c d e f g h i
--------------------------------------------------------------------------------
Equity at 1 January 2011 18.6 -2.8 0.0 0.5 3.3 -2.2 17.4 0.1 17.5
--------------------------------------------------------------------------------
Return of equity -0.9 -0.9 -0.9
--------------------------------------------------------------------------------
Other items -0.0 -0.0 -0.0
--------------------------------------------------------------------------------
Total comprehensive income -0.5 1.1 0.6 0.0 0.6
for the period
--------------------------------------------------------------------------------
Equity at 30 June 2011 18.6 -2.8 0.0 0.0 2.4 -1.1 17.2 0.1 17.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity at 1 January 2010 18.6 -2.8 0.0 -2.2 3.3 -2.2 14.6 0.3 14.9
--------------------------------------------------------------------------------
Other items -0.2 -0.2
--------------------------------------------------------------------------------
Total comprehensive income 1.4 0.6 2.1 0.0 2.1
for the period
--------------------------------------------------------------------------------
Equity at 30 June 2010 18.6 -2.8 0.0 -0.8 3.3 -1.6 16.7 0.1 16.8
--------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS
In preparation of this interim report, Talentum has applied the same principles
as in the financial statements for 2010, apart from the additions described
below.
From 1 January 2011, Talentum has adopted the following revised and amended
IFRS standards:
Revised IAS 24 Related Party Disclosures
The revised standard specifies the definition of ‘related party', which may
have an impact on the disclosures provided in the notes to the financial
statements.
In addition, the Group has adopted the Improvements to IFRSs (May 2010).
The other new and revised standards and interpretations are not relevant to the
Group.
All figures in this report have been rounded up or down, so the sum of single
figures may be different from the totals shown.
TALENTUM GROUP BY SEGMENT
1-6/2011 Publishing Publishing other Direct Other Total
Finland* Nordic marketin
Countries* g
--------------------------------------------------------------------------------
EUR million
--------------------------------------------------------------------------------
External sales 23.6 21.3 2.8 -0.2 47.5
--------------------------------------------------------------------------------
Inter-segment net sales 1.6 -1.6 0.0
--------------------------------------------------------------------------------
Operating income 1.8 1.3 0.5 -1.6 2.0
--------------------------------------------------------------------------------
Segment income before 1.8 1.3 0.5 -1.6 2.0
taxes
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Reconciliation:
--------------------------------------------------------------------------------
Segment income before 1.8
taxes
--------------------------------------------------------------------------------
Non-recurring items -0.2
unallocated to the
segments
--------------------------------------------------------------------------------
Financing items, net -0.2
--------------------------------------------------------------------------------
Share of income of 0.1
associated companies
--------------------------------------------------------------------------------
Consolidated income 1.7
before taxes
--------------------------------------------------------------------------------
* Include the event business acquired on 15 September 2010.
1-6/2010 Publishing Publishing other Direct Other Total
Finland Nordic Countries marketing
--------------------------------------------------------------------------------
EUR million
--------------------------------------------------------------------------------
External sales 19.1 18.1 3.1 0.1 40,5
--------------------------------------------------------------------------------
Inter-segment net 1,5 -1,5 0,0
sales
--------------------------------------------------------------------------------
Operating income 0.5 0.6 0.5 -1.1 0.5
--------------------------------------------------------------------------------
Segment income before 0.5 0.6 0.5 -1.1 0.5
taxes
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Reconciliation:
--------------------------------------------------------------------------------
Segment income before 0.5
taxes
--------------------------------------------------------------------------------
Financing items, net 0.3
--------------------------------------------------------------------------------
Share of income of 0.0
associated companies
--------------------------------------------------------------------------------
Consolidated income 0.8
before taxes
--------------------------------------------------------------------------------
1-12/2010 Publishing Publishing other Direct Other Total
Finland Nordic Countries marketin
g
--------------------------------------------------------------------------------
EUR million
--------------------------------------------------------------------------------
External sales 39.2 35.5 6.0 0.2 81.0
--------------------------------------------------------------------------------
Inter-segment net sales 2.8 -2.8 0.0
--------------------------------------------------------------------------------
Operating income 1.4 1.9 0.9 -2.1 2.0
--------------------------------------------------------------------------------
Segment income before 1.4 1.9 0.0 -2.1 2.0
taxes
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Reconciliation:
--------------------------------------------------------------------------------
Segment income before 2.0
taxes
--------------------------------------------------------------------------------
Non-recurring items -1.8
unallocated to the
segments
--------------------------------------------------------------------------------
Financing items, net -0.2
--------------------------------------------------------------------------------
Share of income of 0.1
associated companies
--------------------------------------------------------------------------------
Consolidated income 0.2
before taxes
--------------------------------------------------------------------------------
CHANGE IN SHARE QUANTITIES *
1,000 shares 1-6/2011 1-6/2010 1-12/2010
-------------------------------------------------------------------------
Shares outstanding at period start 43,615 43,615 43,615
-------------------------------------------------------------------------
Number of shares outstanding at period end 43,615 43,615 43,615
-------------------------------------------------------------------------
* Excluding treasury shares held by the company.
For the period under review, the weighted average number of shares used in the
calculation of earnings per share during the financial period is 43,614,787
(43,614,787 shares 1-6/2010).
The number of shares issued is 44,295,787.
PERSONNEL BY SEGMENT, ON AVERAGE
1-6/2011 1-6/2010 1-12/2010
-----------------------------------------------------------------
Publishing Finland* 239 198 210
-----------------------------------------------------------------
Publishing other Nordic Countries* 253 229 232
-----------------------------------------------------------------
Direct Marketing 314 334 327
-----------------------------------------------------------------
Other 23 18 18
-----------------------------------------------------------------
Total 829 779 787
-----------------------------------------------------------------
* Include the total of 63 employees of the event business acquired on 15
September 2010.
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
EUR million 30.6.2011 30.6.2010 31.12.2010
----------------------------------------------------------------------------
Carrying amount at the beginning of period 1.2 1.3 1.3
----------------------------------------------------------------------------
Additions 0.3 0.2 0.4
----------------------------------------------------------------------------
Acquisitions through business combinations - - 0.0
----------------------------------------------------------------------------
Disposal of businesses - - 0.0
----------------------------------------------------------------------------
Decreases - - -0.3
----------------------------------------------------------------------------
Depreciation -0.2 -0.2 -0.3
----------------------------------------------------------------------------
Exchange rate differences -0.1 0.0 0.0
----------------------------------------------------------------------------
Carrying amount at the end of period 1.2 1.2 1.2
----------------------------------------------------------------------------
CHANGES IN INTANGIBLE ASSETS
EUR million 30.6.2011 30.6.2010 31.12.2010
----------------------------------------------------------------------------
Carrying amount at the beginning of period 46.2 39.7 39.7
----------------------------------------------------------------------------
Additions 0.2 0.5 0.7
----------------------------------------------------------------------------
Purchase price allocation - 0.7 0.6
----------------------------------------------------------------------------
Acquisitions through business combinations - - 2.7
----------------------------------------------------------------------------
Decreases -0.0 -0.0 -0.2
----------------------------------------------------------------------------
Amortisation -0.9 -1.1 -1.9
----------------------------------------------------------------------------
Exchange rate differences -0.8 2.3 4.5
----------------------------------------------------------------------------
Carrying amount at the end of period 44.6 42.2 46.2
----------------------------------------------------------------------------
RELATED PARTY TRANSACTIONS
EUR million 1-6/2011 1-6/2010 1-12/2010
-------------------------------------------------------------------
Employee benefits for key management 0.6 0.5 1.0
-------------------------------------------------------------------
Support payments to pension fund - - -0.2
-------------------------------------------------------------------
Associates and joint ventures:
-------------------------------------------------------------------
Sales 0.8 0.1 0.3
-------------------------------------------------------------------
Receivables 0.2 - -
-------------------------------------------------------------------
Liabilities 0.5 0.4 0.5
-------------------------------------------------------------------
GUARANTEES
EUR million 30.6.2011 30.6.2010 31.12.2010
--------------------------------------------------------------------------------
Guarantees posted for own commitments
--------------------------------------------------------------------------------
Financial institution loans - - -
--------------------------------------------------------------------------------
Book value of shares pledged - - -
--------------------------------------------------------------------------------
Business mortgage - - -
--------------------------------------------------------------------------------
Guarantees posted on behalf of commitments of - 0.3 -
associates
--------------------------------------------------------------------------------
Guarantees posted on behalf of Talentum´s - - -
pension fund
--------------------------------------------------------------------------------
Calculation of key indicators
Earnings per share = Profit for the period attributable to equity owners of the
parent company / Adjusted average number of shares at the end of the financial
period
Equity per share = Equity attributable to equity owners of the parent company /
Adjusted average number of shares at the end of the financial period
Return on invested capital, % = Income before taxes + interest and other
financial expenses / Balance sheet total - non-interest-bearing liabilities
(average of beginning and end of financial year) x 100
Return on equity, % = Result for the financial period / Total equity (average
of beginning and end of financial year) x 100
Equity ratio, % = Total equity / Balance sheet total - advances received x 100
Gearing, % = Interest-bearing liabilities - cash and cash equivalents / Total
equity x 100
Market capitalisation = Number of shares at the end of the financial period x
trading price at the end of the financial period
The figures in this release are unaudited.
General statement
The forecasts and estimates presented here are based on the management's
current view of economic development, and the actual results may differ
substantially from what is now expected of the company.
Financial information 2011
The figure for the January-September income will be disclosed on 27 October
2011.
TALENTUM OYJ
Board of Directors
ADDITIONAL INFORMATION
Chief Executive Officer Juha Blomster, telephone +358 40 342 4444
Chief Financial Officer Niclas Köhler, telephone +358 40 342 4420
DISTRIBUTION
NASDAQ OMX Helsinki
Principal media
BRIEFING
A briefing in Finnish will be held for analysts and the media today, 21 July
2011 at 11:00 at the Talentum head office, Annankatu 34-36 B, Kamppi, Helsinki,
Finland. The financial results will be presented by CEO Juha Blomster and CFO
Niclas Köhler.
Talentum Oyj
Annankatu 34-36 B
FI-00100 Helsinki
Telephone +358 20 442 40
www.talentum.com
This report has been published in Finnish and translated into English. In case
of any discrepancy between the versions, the Finnish version shall prevail.
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