2016-07-27 07:30:01 CEST
2016-07-27 07:30:01 CEST
REGULATED INFORMATION
Sanoma Oyj - Interim report (Q1 and Q3)
Sanoma’s Interim Report 1 January – 30 June 2016: Positive Development Continued in the Second Quarter
Sanoma Corporation, Stock Exchange Release, 27 July 2016 at 8:30 CET+1
Second quarter
-- Net sales amounted to EUR 449.8 million (2015: 468.8).
-- Adjusted for changes in the Group structure, Sanoma’s net sales increased
by 1.7%.
-- Operational EBIT was EUR 86.9 million (2015: 49.4).
-- Items affecting comparability included in the operating profit amounted to
EUR 54.8 million (2015: -40.3), mainly related to the settlement of
changing defined benefit pension plans in the Netherlands to a defined
contribution plan. In the previous year, items affecting comparability
consisted mainly of a write-down on Belgian magazine titles and
restructuring expenses.
-- Operating profit was EUR 141.7 million (2015: 9.2).
-- Earnings per share were EUR 0.57 (2015: -0.12).
-- Operational earnings per share were EUR 0.33 (2015: 0.13).
-- Cash flow from operations was EUR 9.2 million (2015: -40.6).
First half
-- Net sales amounted to EUR 802.9 million (2015: 848.9).
-- Adjusted for changes in the Group structure, Sanoma’s net sales increased
by 1.0%.
-- Operational EBIT was EUR 88.8 million (2015: 29.6).
-- Items affecting comparability included in the operating profit amounted to
EUR 56.0 million (2015: -31.4), mainly related to the settlement of
changing defined benefit pension plans in the Netherlands to a defined
contribution plan. In the previous year, items affecting comparability
consisted mainly of sales gains and losses, restructuring expenses and a
write-down on Belgian magazine titles.
-- Operating profit was EUR 144.7 million (2015: -1.8).
-- Earnings per share were EUR 0.57 (2015: -0.18).
-- Operational earnings per share were EUR 0.29 (2015: -0.02).
-- Cash flow from operations was EUR -46.9 million (2015: -113.7).
Outlook (unchanged from the revised outlook published on 14 July 2016)
In 2016, Sanoma expects that the Group’s consolidated net sales development
adjusted for structural changes will improve from last year (2015: -3.4%). The
operational EBIT margin is estimated to be around 9%.
Key indicators(based on reported figures, not adjusted for structural changes)
EUR million 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/
2016 2015 % 2016 2015 % 2015
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Net sales 449.8 468.8 -4.1 802.9 848.9 -5.4 1,716.6
Operational EBIT 86.9 49.4 75.8 88.8 29.6 200.0 83.2
% of net sales 19.3 10.5 11.1 3.5 4.8
Operating profit 141.7 9.2 144.7 -1.8 -123.6
Result for the period 97.3 -14.9 97.9 -23.2 -158.0
Cash flow from operations 9.2 -40.6 -46.9 -113.7 25.2
Capital expenditure * 9.6 18.3 -47.3 15.3 30.3 -49.4 54.7
% of net sales 2.1 3.9 1.9 3.6 3.2
Return on equity (ROE), % ** -3.4 -5.8 -13.6
Return on investment (ROI), % ** 1.2 -0.4 -5.3
Equity ratio, % 41.7 41.9 39.5
Net gearing, % 79.3 78.1 77.8
Number of employees at the end of the period 5,467 7,005 -22.0 6,116
(FTE)
Average number of employees (FTE) 5,491 7,021 -21.8 6,776
Earnings/share, EUR 0.57 -0.12 0.57 -0.18 -0.91
Cash flow from 0.06 -0.25 -0.29 -0.70 0.16
operations/share, EUR
Equity/share, EUR 4.87 5.45 -10.6 4.59
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* Including finance leases.
** Rolling 12-month period.
Sanoma presents certain financial performance measures (alternative performance
measures or APMs) on a non-IFRS basis. The APMs are provided to reflect the
underlying business performance and to enhance comparability from period to
period. APMs should not be considered as a substitute for measures of
performance in accordance with IFRS.
From Q1 2016, Sanoma has relabelled the previously referenced "excluding
non-recurring items" non-IFRS financial measures as "Operational" performance
measures. Operational performance measures exclude the income statement impacts
of certain non-operational or non-cash valuation items affecting comparability.
There is more information about Alternative Performance Measures on page 8.
Organic growth, %
4-6/2016 vs. 1–6/2016 vs. 1–12/2015 vs.
4-6/2015 1–6/2015 1–12/2014
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Media BeNe +2.6 +3.0 -1.4
Media Finland +2.2 +0.7 -4.1
Learning -0.9 -4.2 -4.0
Group +1.7 +1.0 -3.4
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Susan Duinhoven, President and CEO
“Sanoma continued its good development during the second quarter. Organic net
sales grew by 1.7% - a very satisfactory achievement under still challenging
market conditions. Supported both by increased advertising sales in Media
Finland and tight cost control, our operational performance improved strongly
during the quarter.
Media Finland was the biggest single positive factor behind the improved
profitability. Both consumer and advertising sales increased compared to last
year. TV & Radio operations continued their excellent performance. Both also
won market share during the second quarter. The viewing share of TV channels
improved in the second quarter to 36.6% from 31.1% and radio sales grew by 30%.
Besides the good sales development, profitability at Media Finland was also
supported by operational improvements and cost savings. The planning for the
turn-around initiatives Suunta for Media Finland is now completed and various
activities will now commence, each with their own timelines. In preparation,
the organisational structure has already changed in the second quarter.
The operational performance development of Media BeNe in the second quarter was
also good. Organic net sales grew by 2.6% and profitability improved.
Especially the print & online brand portfolio continued on a positive path.
Like-for-like net sales and the profitability improved strongly. The Dutch
free-to-air television real time viewing time trend developed negatively in Q2.
In June the European soccer championship, shown on public broadcasting
channels, also had the expected negative impact on SBS viewing shares.
Sanoma Learning continued its steady development. Sales in the second quarter
declined slightly, mainly due to the legislation driven market change in
Poland. Profitability improved versus last year, partially due to the change in
the amortisation schedule and some shifts between the quarters. Sanoma Learning
successfully acquired the Belgian company De Boeck and this will be included in
Sanoma’s income statement from 1 July onwards. This transaction reinforces our
existing market leadership in the Belgian market and will create attractive
integrational synergies going forward.
Based on the strongly improved results in the first half of the year and
assuming continuation of market trends in the second half of the year, we
improved our outlook for the year 2016. We will of course remain exposed to
continued volatility in the general economy and the advertising markets, but
with the dedication of our teams in all our businesses we are confident that we
can continue our improvement for the remainder of the year 2016.”
January–June 2016 Interim Report webcast
The event for analysts, investors and media will be held in English by
President and CEO Susan Duinhoven and CFO Kim Ignatius on 27 July 2016 at 11:00
Finnish time (9:00 UK time) at Sanomatalo, Töölönlahdenkatu 2, Helsinki. The
live webcast can be viewed on Sanoma’s website at www.sanoma.com/en/investors
and on demand after the event.
Please join by dialing
Finland: +358 (0)9 2310 1619 / US: +1 646 254 3376 / UK: +44 (0)20 3427 1935 /
Netherlands: +31 (0)20 716 8251
Conference id: 4878127
Financial reporting 2016
- Interim Report January–September on 28 October 2016, approx. at 8:30.
Additional information
Sanoma's Investor Relations, Pekka Rouhiainen, tel. +358 40 7395897
About Sanoma
Sanoma is an inspiring, relevant and trusted consumer media and learning
company. Ever since its formation in 1889, the company has held creativity and
independent thinking at its core in order to deliver high-quality content in
new and different ways.
Sanoma’s consumer media business provides consumers with engaging and
personalised content through cross-media brands that touch their lives.
Sanoma’s close relationships with its consumers enable the company to offer
unique value-added marketing solutions to its business partners.
Sanoma Learning’s learning solutions enable teachers to excel at developing the
talents of every child, creating opportunities for children to advance their
prospects in life.
With operating companies in Finland, the Netherlands, Belgium, Poland and
Sweden, Sanoma realised net sales of more than EUR 1.7 billion in 2015. The
company employed over 6,000 employees.
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