2007-07-20 08:11:59 CEST
2007-07-20 08:11:59 CEST
REGULATED INFORMATION
Alma Media - Quarterly report
ALMA MEDIA CORPORATION S INTERIM REPORT FOR APRIL-JUNE 2007: - Second-quarter operating profit grew 23% to MEUR 14.4
ALMA MEDIA CORP. STOCK EXCHANGE RELEASE 20 JULY 2007, 9.00 AM (EET)
Second quarter highlights:
* Net sales MEUR 84.0 (Q2/2006: MEUR 74.8)
* Operating profit MEUR 14.4, 17.1% of net sales
(MEUR 11.6, 15.6%)
* Profit before tax MEUR 14.8 (MEUR 11.9)
* Earnings per share EUR 0.15 (EUR 0.12)
* Newspapers segment operating profit MEUR 11.5 (MEUR 9.7)
* Kauppalehti group operating profit MEUR 2.4 (MEUR 1.6)
* Marketplaces segment operating profit MEUR 1.3 (MEUR 0.6)
* Forecast for 2007 remains unchanged
President and CEO Kai Telanne:"Alma Media's strong growth in the first quarter continued between
April and June. In media sales we once again reached a new quarterly
record. Lively media sales, coupled with cost control and the Group's
chaining model, kept our profitability good. Content development in
our newspapers developed favourably owing to Alma Media's Helsinki
desk and other close editorial collaboration within the Group. The
newspapers are on a strong financial footing. Kauppalehti Group,
likewise, has returned to improving its profit as cost-cutting
measures are beginning to show up, and as b-to-b media sales are
picking up in online."The online services of our newspapers were successful as well -
during the second quarter roughly one million Finns visited
Iltalehti's pages weekly; kauppalehti.fi is Finland's leading
business portal, and we are also seeing steady growth in the number
of visitors to the online pages of the regional papers. Our
internationally expanding Marketplaces segment showed further growth
and its consolidation in eastern-central Europe and Russia is
proceeding as planned."We continue long-term investments in our online media to keep Alma
Media as a forerunner in this field. For that reason we are seeking
closer and more intensive development of the newspapers' online
services and encouraging closer co-operation between our newspapers
and marketplaces in online media. These investments will slow down
the development of especially Marketplaces segment's financial
performance in the second half of the year."
Further information:
President and CEO Kai Telanne, tel. +358 10 665 3500
CFO Teemu Kangas-Kärki, tel. +358 10 665 2244.
Conference, webcast and conference call:
The company will hold a conference in Finnish concerning its
second-quarter results starting at 11.00 am on 20 July 2007 in the
Carl cabinet of the Scandic Marski hotel, Mannerheimintie 10,
Helsinki. The results will be presented by President and CEO Kai
Telanne and CFO Teemu Kangas-Kärki.
The presentation material in English can be downloaded from the
company's website www.almamedia.fi. A webcast in English, lasting
roughly 20 minutes, will start at the same address at 1.30 pm (EET).
A conference call in English for investors and analysts will start at
2.00 pm (EET). To participate, please call +44 (0)20 71620125.
Rauno Heinonen
VP, Corporation Communications and IR
Alma Media Corporation
DISTRIBUTION: Helsinki Stock Exchange, principal media
ALMA MEDIA GROUP'S INTERIM REPORT JANUARY-JUNE 2007
The descriptive part of this interim report concentrates on the
Group's performance between April and June. Figures in brackets refer
to the second quarter of 2006 unless otherwise stated. The figures in
the tables are independently rounded.
CHANGES IN GROUP STRUCTURE COMPARED TO 2006
Aamulehti acquired a 40% stake in direct mailing distribution company
Tampereen Ykkösjakelu Oy on 22 May 2007.
Kainuun Sanomat sold its newspaper printing business to
Pyhäjokiseudun Kirjapaino Oy on 28 June 2007.
On 1 July 2006 Kauppalehti raised its holding in TietoEnator 121 Oy
from 49% to 100%. This company was renamed Kauppalehti 121 Oy and its
annual net sales total roughly MEUR 9.
Kauppalehti Group's Alma Media Lehdentekijät business acquired Suomen
Business
Viestintä Oy on 1 July 2006. This company has annual net sales of
approximately MEUR 2.5.
On 1 July 2006 two new companies, Bovision AB and Objektvision AB
with aggregate annual net sales of around MEUR 1.7, were acquired for
the Marketplaces segment.
GROUP NET SALES AND RESULT JANUARY-JUNE 2007
The Group's net sales between January and June 2007 totalled MEUR
165.9 (MEUR 146.2). The Newspapers segment accounted for 116.4 MEUR
of net sales, Kauppalehti Group segment for 35.5 MEUR and the
Marketplaces segment for 15.3 MEUR.
The Group's operating profit developed favourably between January and
June, totalling MEUR 30.4 for the period (MEUR 21.6). The operating
margin was 18.3% (14.8%). A capital gain of MEUR 1.9 was recorded
during the first quarter of 2007 on the disposal on 1 February 2007
of a property in Rovaniemi used by the Lapin Kansa newspaper.
GROUP NET SALES AND RESULT APRIL-JUNE 2007
Alma Media Corporation's net sales during the second quarter of 2007
totalled MEUR 84.0 (MEUR 74.8). Net sales was boosted in particular
by media sales growth in Aamulehti, Iltalehti and the Marketplaces
business as well as the Kauppalehti Group's new businesses.
The Group's operating profit was MEUR 14.4 (MEUR 11.6). The operating
margin was 17.1% (15.6%). The second-quarter operating profit does
not include any significant one-time items.
PROSPECTS TO YEAR END
Alma Media keeps unchanged its forecast on the development of its key
indicators during 2007. Assuming growth in the media market remains
similar to 2006 for the rest of the year, the Group expects its net
sales and operating profit to grow.
MARKET CONDITIONS
Several research institutions are revising their growth forecasts for
the Finnish economy in 2007; the current buoyant market conditions
are expected to continue more strongly and for longer than previously
predicted. In spring 2007 the economy was forecast to growth by
roughly three percent. The latest forecasts set economic growth for
2007 at over four percent and the current upswing to continue to the
end of 2008.
The lively economic growth, driven mainly by domestic demand, is
especially evident in marketing communications targeted at consumers
and in classified advertising. Strong demand for employees with
professional skills, coupled with competition for the most competent
professionals in Finland, is driving growth in recruitment
advertising.
According to TNS Gallup the volume of media advertising rose by 6.6 %
from the start of the year until the end of June, compared with the
same period last year. Of the major media, advertising growth was
most vigorous in Internet (+23.0 %), newspapers (+6.6 %) and
television (+5.6%).
KEY FIGURES
KEY 2007 2006 2007 2006 2006
FIGURES 4-6 4-6 1-6 1-6 1-12
MEUR
Net sales 84.0 74.8 165.9 146.2 301.9
Operating profit 14.4 11.6 30.4 21.6 49.1
% of net sales 17.1 15.6 18.3 14.8 16.3
Net financial
expenses 0.0 0.1 0.0 0.3 0.5
Net financial
expenses,% of net
sales 0.0 0.1 0.0 0.2 0.2
Share of associated
companies' results 0.4 0.3 1.6 0.8 1.2
Balance sheet total 185.2 252.3 199.7
Gross capital
expenditure 3.6 2.3 5.3 4.6 19.6
Gross capital
expenditure,% of net sales 4.3 3.1 3.2 3.2 6.5
Equity ratio 55.4 57.9 61.3
Gearing,% 6.9 -23.2 -5.6
Interest-bearing
net debt 6.3 -31.1 -6.5
Interest-bearing
liabilities 21.5 52.0 21.7
Non-interest-bearing
liabilities 73.0 66.3 62.7
Average no. of personnel,
calculated as full-time employees,
excl. delivery
staff 2,008 1,873 1,977 1,831 1,901
Average no. of delivery
staff 968 811 949 816 857
Earnings/share, EUR
(basic) 0.15 0.12 0.32 0.22 0.50
Earnings/share, EUR
(diluted) 0.14 0.12 0.32 0.22 0.50
Cash flow from operating
activities, EUR 0.14 0.12 0.52 0.44 0.63
Shareholders'
equity/share, EUR 1.21 1.79 1.54
Market capitalization 813.3 548.4 690.2
Average no. of shares
(1,000 shares)
- basic 74,613 74,613 74,613 74,613 74,613
- diluted 74,742 74,613 74,735 74,613 74,613
No. of shares at end
of period (1,000 shares) 74,613 74,613 74,613
NET SALES BY SEGMENT, 2007 2006 2007 2006 2006
MEUR 4-6 4-6 1-6 1-6 1-12
Newspapers 58.9 54.8 116.4 107.5 217.9
Kauppalehti group 17.8 14.6 35.5 28.7 62.6
Marketplaces 7.9 5.7 15.3 10.8 23.1
Other operations and eliminations -0.6 -0.2 -1.3 -0.8 -1.7
Total 84.0 74.8 165.9 146.2 301.9
OPERATING PROFIT/ 2007 2006 2007 2006 2006
LOSS BY SEGMENT, MEUR 4-6 4-6 1-6 1-6 1-12
Newspapers 11.5 9.7 23.0 17.9 38.4
Kauppalehti group 2.4 1.6 3.8 2.8 4.8
Marketplaces 1.3 0.6 2.9 1.1 2.8
Other operations and eliminations -0.8 -0.3 0.7 -0.2 3.1
Total 14.4 11.6 30.4 21.6 49.1
NEWSPAPERS
Newspapers, 2007 2006 2007 2006 2006
key figures (MEUR) 4-6 4-6 1-6 1-6 1-12
Net sales 58.9 54.8 116.4 107.5 217.9
Circulation sales 26.4 24.9 52.8 49.5 101.8
Media advertising sales 29.5 27.0 57.6 52.0 104.5
Printing sales 1.4 1.6 3.1 3.1 6.2
Other sales 1.5 1.3 2.8 2.8 5.4
Operating profit 11.5 9.7 23.0 17.9 38.4
Operating margin,% 19.5 17.7 19.8 16.7 17.6
Gross capital
expenditure 2.6 1.0 3.6 2.3 4.1
Average no. of personnel calculated as
full-time employees, excl. delivery
staff 1,254 1,237 1,220 1,205 1,220
Average no. of
delivery staff 968 811 949 816 857
The Newspapers segment reports the publishing activities of 34
newspapers. The largest of these are the regional paper Aamulehti and
the daily tabloid Iltalehti.
The Newspapers segment's net sales rose by 7.3% during the second
quarter to total MEUR 58.9. The circulation sales of the newspapers
grew 6.0% being particularly strong in Lapin Kansa and Pohjolan
Sanomat (Northern Newspapers). The rise in Iltalehti's circulation
sales was partly attributable to an increase in the price of the
weekday edition. Iltalehti's market share rose by a good percentage
point according to preliminary information and stood at 42.9% in the
second quarter. Iltalehti's online service iltalehti.fi had roughly
one million weekly visitors on average in the second quarter. Visitor
numbers were also rising steadily in the online services of the
regional papers.
Media sales continued to growth strongly throughout the segment,
standing at 9.0% higher than in the second quarter of 2006. Growth in
media sales was especially good in Iltalehti, and particularly its
online services, and also in Aamulehti. Lapin Kansa's media sales
showed good growth likewise. Newspaper advertising was increased most
by the food retail, property and job advertising sectors. Advertising
volume decreased, by contrast, in the telecommunications sector and
to some extent also in the vehicle trading business compared with
last year.
KAUPPALEHTI GROUP
Kauppalehti group, 2007 2006 2007 2006 2006
key figures (MEUR) 4-6 4-6 1-6 1-6 1-12
Net sales 17.8 14.6 35.5 28.7 62.6
Circulation sales 6.2 5.8 12.1 11.8 23.7
Media advertising
sales 5.3 5.7 10.7 10.8 22.1
Other sales 6.4 3.1 12.7 6.1 16.7
Operating profit 2.4 1.6 3.8 2.8 4.8
Operating margin,% 13.3 10.7 10.8 9.7 7.7
Gross capital
expenditure 0.1 0.3 0.4 0.6 6.4
Average no. of personnel
calculated as full-time
employees 534 461 537 454 496
The Kauppalehti group specializes in producing business and financial
information. Its best known title is Finland's leading business daily
Kauppalehti. The group also includes Alma Media Lehdentekijät
(contract publishing) and Kauppalehti 121 (direct marketing).
The Kauppalehti group's net sales in the second quarter were MEUR
17.8, up 22.1 on the same period last year. The increase is
particularly attributable to the impact of the new units (Kauppalehti
121 and Suomen Business Viestintä).
Media sales by Kauppalehti and Presso were affected by the continuing
slack state of the b-to-b market. Media sales in Kauppalehti Optio
and Online grew well.
The Kauppalehti group's operating profit rose by 51.5% to MEUR 2.4
owing to the new business units. Furthermore the impacts of the
cost-cutting measures implemented by Kauppalehti during the winter of
2007 started to become visible during the second quarter, as planned.
MARKETPLACES
Marketplaces, 2007 2006 2007 2006 2006
key figures (MEUR) 4-6 4-6 1-6 1-6 1-12
Net sales 7.9 5.7 15.3 10.8 23.1
Operations 6.4 5.1 12.5 9.7 19.7in Finland
Operations outside 1.5 0.6 2.8 1.1 3.3
Finland
Operating profit 1.3 0.6 2.9 1.1 2.8
Operating margin,% 16.2 10.8 18.8 10.0 12.3
Gross capital expenditure 0.2 0.5 0.3 1.0 7.3
Average no. of personnel 154 101 152 98 111
calculated as full-time
employees
The Marketplaces segment reports Alma Media's classified services,
which are produced on the internet and supported by printed products.
Marketplaces was again successful during the second quarter. The
segment's net sales rose by almost 40%. In Finland, where net sales
increased by 27% on the same period last year, growth was strongest
in monster.fi (45%) and etuovi.com (36%). Outside Finland,
Marketplaces' net sales grew 144%, due in particular to the Bovision
and Objektvision services acquired in 2006 and to buoyant sales by
the City24 services in Estonia and Lithuania. The City24 service in
Russia will be opened for consumers after the summer vacation.
Marketplaces' operating profit more than doubled, slightly exceeding
16% of net sales.
ASSOCIATED COMPANIES
Share of results of 2007 2006 2007 2006 2006
associated companies 4-6 4-6 1-6 1-6 1-12
MEUR)
Newspapers 0.0 0.0 0.0 0.0 0.0
Kauppalehti group
Talentum Oyj 0.2 0.1 1.1 0.6 0.7
Other associated 0.0 0.1 0.0 0.2 0.3
companies
Marketplaces 0.0 0.0 0.0 0.0 0.0
Other operations
Acta Print Oy 0.0 -0.1 0.1 -0.3 -0.4
Other associated 0.2 0.2 0.4 0.3 0.6
companies
Total 0.4 0.3 1.6 0.8 1.2
The Group holds a 29.9% stake in Talentum Oyj, which is reported
under the Kauppalehti group, and 36.0% of Acta Print Oy, reported
under Other Operations.
Alma Media intends to relinquish its entire holding in Acta Print Oy.
This divestment is not expected to have a significant impact on Alma
Media's financial position. In July Acta Print Oy announced the sale
of its magazine printing business to Forssan Kirjapaino Oy.
In May 2007 Aamulehti acquired a 40% holding in Tampereen Ykkösjakelu
Oy. This associated company holding is reported under the Newspapers
segment.
BALANCE SHEET AND FINANCIAL POSITION
The Group's balance sheet totalled MEUR 185.2 at the end of June 2007
(MEUR 199.7 on 31 December 2006). The equity ratio at the end of June
was 55.4% (61.3% 31 December 2006) and shareholders' equity per share
was EUR 1.21 (EUR 1.54 31 December 2006).
The Group's cash flow developed favourably. Cash flow before
financing activities was MEUR 7.8 (MEUR 5.4). At the end of June the
company had net debt totalling MEUR 6.3 (MEUR -6.5 on 31 December
2006).
The Group's interest-bearing debt is denominated in euros and
therefore does not require hedging against exchange rate differences.
Alma Media hedges the most significant purchasing agreements based in
foreign currency.
The Group currently has a MEUR 100 commercial paper programme in
Finland under which it is permitted to issue papers to a total amount
of MEUR 0-100. On 30 June 2007 this programme was entirely unused.
CAPITAL EXPENDITURE
Capital expenditure in the second quarter MEUR 3.6 (MEUR 2.3)
comprised online media development projects, normal maintenance and
replacement investments, and the acquisition of the shares in
Tampereen Ykkösjakelu Oy.
RISKS AND RISK MANAGEMENT
The most important strategic risks contingent on Alma Media's
business operations are a significant drop in the readerships of its
newspapers and a critical decline in retail advertising. The major
operational risks are disturbances in information technology systems
and telecommunication, and an interruption of printing operations.
Alma Media's risk management process identifies the risks, develops
appropriate risk management methods and regularly reports on risk
issues to the risk management function.
ADMINISTRATION
Mr Mikko Korttila was appointed General Counsel of Alma Media
Corporation. He takes up this position on 1 September 2007.
THE ALMA MEDIA SHARE
Altogether 12.7 million Alma Media shares were traded between April
and June, which represented 17% of the total number of shares.
The closing price of the Alma Media share at the end of June was EUR
10.90. The lowest quotation during the period was EUR 9.20 and the
highest was EUR 10.90. The company's market capitalization at the end
of the period was MEUR 813.3.
In March the company paid a dividend of EUR 0.65 per share, totalling
MEUR 48.5.
The company does not own any of its own shares and it has no
authorizations to purchase its own shares.
Option rights
The annual general meeting on 8 March 2006 approved a three-stage
option programme (option rights 2006A, 2006B and 2006C), disapplying
the pre-emptive subscription right of the shareholders, under which
stock options would be granted to the managements of Alma Media
Corporation and its subsidiaries as a scheme for ensuring personnel's
motivation and long-term commitment to the company. Altogether
1,920,000 stock options may be granted in three lots of 640,000 each,
and these may be exercised to subscribe for at most 1,920,000 Alma
Media shares.
So far 515,000 of the 2006A options have been issued to Group
management. Altogether 65,000 of the 2006A options have been returned
to the company owing to the termination of employment contracts. On 2
May 2007 the company's Board of Directors decided to annul the
190,000 2006A option rights in the company's possession.
In March 2007 the Board of Directors decided to issue 510,000 options
under the 2006B scheme to Group management.
If all the subscription rights were exercised, this programme would
dilute the holdings of the earlier shareholders by 2.3%.
The share subscription periods and prices under the scheme are:
2006A: 1 April 2008 - 30 April 2010, average trade-weighted price 1
April - 31 May 2006
2006B: 1 April 2009 - 30 April 2011, average trade-weighted price 1
April - 31 May 2007
2006C: 1 April 2010 - 30 April 2012, average trade-weighted price 1
April - 31 May 2008
The subscription price of shares that may be subscribed under these
stock option rights will be reduced by the amount of dividends and
capital repayments decided after the start of the period determining
the subscription price and before the subscription of shares, on the
settlement date for each dividend payment or capital repayment. The
share subscription price under the 2006A option was EUR 6.48 per
share and the subscription price under the 2006B option was EUR 9.85
correspondingly.
The Board of Directors has no other current authorizations to raise
convertible loans and/or to raise the share capital through a rights
issue.
Market liquidity guarantee
Alma Media Corporation and eQ Pankki Oy have made a liquidity
providing contract under which eQ Pankki Oy guarantees bid and ask
prices for the shares with a maximum spread of 3% during 85% of the
exchange's trading hours. The contract applies to a minimum of 2,000
shares.
Flagging notices
12 June 2007: Nordea group's holding in Alma Media including forward
contracts exceeded 15%.
20 June 2007: Nordea announced that, contrary to earlier
announcements, the maturity of previously made forward contracts did
not reduce the bank's holding to below the 15% flagging limit owing
to new share acquisitions. The holding was announced as 15.29%
29 June 2007: Nordea bank's holding was reduced to 10.90% after the
bank announced its sale of 2,515,000 Alma Media shares.
29 June 2007: Oy Herttaässä Ab's holding in Alma Media increased to
10.15% and, including forward contracts, to 13.18%.
INCOME STATEMENT, 2007 2006 2007 2006 2006
MEUR 4-6 4-6 1-6 1-6 1-12
NET SALES 84.0 74.8 165.9 146.2 301.9
Other operating
income 0.5 0.5 2.6 0.7 5.5
Materials and
services -24.9 -22.7 -48.8 -44.4 -92.0
Costs arising from
employment benefits -28.4 -26.0 -56.4 -50.9 -105.7
Depreciation and
writedowns -2.5 -2.4 -4.8 -5.0 -10.1
Operating expenses -14.5 -12.6 -28.2 -25.0 -50.4
OPERATING PROFIT 14.4 11.6 30.4 21.6 49.1
Financial income 0.3 0.7 0.7 1.3 2.1
Financial expenses -0.3 -0.8 -0.7 -1.6 -2.6
Share of associated
companies' results 0.4 0.3 1.6 0.8 1.2
PROFIT BEFORE TAX 14.8 11.9 32.0 22.1 49.9
Income tax -3.8 -3.0 -7.9 -5.5 -12.5
PROFIT FOR THE PERIORD 11.0 8.9 24.1 16.6 37.3
Distribution:
To the parent company
shareholders 10.8 8.8 23.8 16.4 37.0
Minority interest 0.2 0.1 0.3 0.2 0.3
Earnings per share,
EUR 0.15 0.12 0.32 0.22 0.50
Earnings per share
diluted), EUR 0.14 0.12 0.32 0.22 0.50
BALANCE SHEET, 30.6.2007 30.6.2006 31.12.2006
MEUR
ASSETS
NON-CURRENT
ASSETS
Goodwill 30.0 19.0 30.2
Intangible assets 9.6 7.6 9.7
Tangible assets 50.8 57.5 51.7
Investment properties 0.0 2.5 0.0
Investments in
associated companies 32.0 36.3 32.1
Other long-term
investments 3.9 7.4 3.9
Deferred tax assets 3.7 3.7 4.1
Other receivables 0.1 5.0 4.8
CURRENT ASSETS
Inventories 1.5 1.6 1.8
Tax receivables 0.0 1.1 0.7
Accounts receivable
and other receivables 31.1 25.4 28.8
Other short-term
investments 2.5 2.2 2.4
Cash and cash
equivalents 15.2 83.0 28.2
ASSETS AVAILABLE
FOR SALE 4.7 1.2
TOTAL ASSETS 185.2 252.3 199.7
BALANCE SHEET, MEUR 30.6.2007 30.6.2006 31.12.2006
SHAREHOLDERS' EQUITY
AND LIABILITIES
Share capital 44.8 44.8 44.8
Share premium fund 2.8 42.4 2.8
Cumulative translation
adjustment 0.1 0.0 0.1
Retained earnings 42.7 46.7 67.2
Parent company
shareholders' equity 90.4 133.8 114.9
Minority interest 0.4 0.2 0.4
TOTAL SHAREHOLDERS'
EQUITY 90.7 134.0 115.3
LIABILITIES
Non-current
liabilities
Interest-bearing
liabilities 18.9 19.4 19.1
Deferred tax
liabilities 1.6 1.3 1.8
Pension obligations 3.7 3.7 3.6
Provisions 0.0 0.2 0.1
Other long-term
liabilities 6.8 7.0 7.2
Current liabilities
Interest-bearing
liabilities 2.6 32.6 2.6
Advances received 21.4 21.0 11.6
Tax liabilities 2.0 0.2 2.2
Provisions 1.4 0.7 2.3
Accounts payable
and other liabilities 35.9 32.3 33.9
TOTAL LIABILITIES 94.5 117.0 84.4
TOTAL EQUITY AND
LIABILITIES 185.2 252.3 199.7
RECONCILIATION OF SHAREHOLDERS' EQUITY 1 JAN. - 30 JUNE 2007
Share Parent
Share premium Retained company, Minority Equity,
MEUR capital fund earnings total interest total
Equity, 1 Jan.
2007 44.8 2.8 67.3 114.9 0.4 115.3
Translation d
ifferences 0.0 0.0 0.0
Share of items
recognized
directly in
associated
company's
equity 0.0 0.0 0.0
Income recognized
directly in equity 0.0 0.0 0.0
Profit for the
period 23.8 23.8 0.3 24.1
Net income for the
period 23.8 23.8 0.3 24.1
Share-based
payments 0.2 0.2 0.2
Dividend paid by
parent
company -48.5 -48.5 -48.5
Dividends paid by -0.4 -0.4
subsidiaries
Equity, 30 June 44.8 2.8 42.7 90.4 0.4 90.7
2007
RECONCILIATION OF SHAREHOLDERS' EQUITY 1 JAN. - 30 JUNE 2006
Share Parent
Share premium Retained company, Minority Equity,
MEUR capital fund earnings total interest total
Equity, 1 Jan.
2006 44.8 42.4 39.0 126.2 0.5 126.7
Translation
differences 0.0 0.0 0.0
Share of items
recognized
directly in
associated
company's
equity 0.1 0.1 0.1
Income
recognized
directly in
equity 0.1 0.1 0.1
Profit for the
period 16.4 16.4 0.2 16.6
Net income for
the period 16.5 16.5 0.2 16.7
Share-based
payments 0.1 0.1 0.1
Dividend paid
by parent
company -9.0 -9.0 -9.0
Dividends paid
by -0.3 -0.3
subsidiaries
Translation -0.2 -0.2
differences
Equity, 30 June 44.8 42.4 46.7 133.8 0.2 134.0
2006
2007 2006 2007 2006 2006
CASH FLOW STATEMENT, MEUR 4-6 4-6 1-6 1-6 1-12
Cash flow from
operating activities
Profit for the period 11.0 8.9 24.1 16.6 37.3
Adjustments 5.1 4.9 8.4 9.4 18.2
Change in working capital -3.5 -6.7 10.5 6.8 -3.8
Dividend income received 3.2 5.5 3.2 5.5 6.4
Interest income received 0.1 0.6 0.5 1.1 1.9
Interest expenses paid -0.3 -0.4 -0.7 -0.7 -3.1
Taxes paid -4.9 -3.5 -7.2 -5.5 -10.3
Net cash provided by
operating activities 10.7 9.2 38.7 33.1 46.7
Cash flow from investing
activities
Investments in tangible
and intangible assets -1.5 -1.2 -2.4 -3.2 -5.4
Proceeds from disposal
of tangible and intangible
assets 0.2 0.4 0.2 0.5 3.8
Other investments 0.0 0.0 0.0 0.0 0.0
Proceeds from disposal
of other investments 0.0 0.6 3.2 0.7 9.1
Subsidiary shares purchased 0.0 -3.5 -0.2 -3.6 -9.0
Associated company shares
purchased -1.5 0.0 -1.5 0.0 0.0
Net cash used in investing
activities -2.9 -3.8 -0.7 -5.5 -1.5
Cash flow before financing
activities 7.8 5.4 37.9 27.6 45.2
Cash flow from financing
activities
Long-term loan repayments 0.0 -3.6 0.0 -3.6 -33.6
Short-term loans raised 0.0 0.0 2.0 0.0 0.0
Short-term loans repaid -3.0 -0.4 -3.7 -1.3 -3.5
Change in interest-bearing
receivables -0.1 0.0 -0.3 -0.2 -0.6
Dividends paid and capital
repayment 0.0 0.0 -48.8 -9.0 -48.8
-3.1 -4.0 -50.9 -14.2 -86.5
Change in cash funds
(increase + / decrease -) 4.7 1.4 -13.0 13.5 -41.4
Cash and cash equivalents
at start of period 10.5 81.6 28.2 69.6 69.6
Cash and cash equivalents
at end of period 15.2 83.0 15.2 83.0 28.2
BUSINESS ACQUISITIONS 1-6/2007
The Group did not acquire any new business operations during the
first half of 2007.
In January 2007 Marketplaces established a new company, OOO City24,
in Russia that will begin operating the City24 housing portal in
Moscow.
Aamulehti acquired a 40% holding in Tampereen Ykkösjakelut Oy in May
2007.
INFORMATION BY SEGMENT
Alma Media's reporting segments in this interim report are
Newspapers, Kauppalehti group and Marketplaces. Other Operations
comprises the Group's parent company and the operations of the
Group's financial management service centre.
The descriptive section of this report presents the net sales and
operating profits of the segments and the allocation of the
associated companies' results to the reporting segments. Financial
items and income taxes are not allocated to the segments. The
following table presents the assets and liabilities of the segments
as well as the non-allocated asset and liability items.
ASSETS BY SEGMENT, 30.6.2007 30.6.2006 31.12.2006
MEUR
Newspapers 67.3 68.0 66.7
Kauppalehti group 54.9 52.9 56.1
Marketplaces 14.4 8.2 13.9
Other operations and eliminations 25.8 31.4 29.3
Non-allocated assets 22.8 91.8 33.8
Total 185.2 252.3 199.7
LIABILITIES BY SEGMENT, 30.6.2007 30.6.2006 31.12.2006
MEUR
Newspapers 37.8 36.5 29.9
Kauppalehti group 14.5 10.6 12.2
Marketplaces 4.1 2.1 3.5
Other operations and eliminations 9.2 11.8 9.4
Non-allocated assets 28.9 56.0 29.4
Total 94.5 117.0 84.4
2007 2006 2007 2006 2006
GROUP INVESTMENTS, MEUR 4-6 4-6 1-6 1-6 1-121-12
Gross capital expenditure 3.6 2.3 5.3 4.6 19.6
PROVISIONS
The company's provisions at the end of June totalled MEUR 1.5, the
most important of which was a MEUR 0.7 provision to cover
restructuring measures in Kauppalehti Oy. MEUR 0.4 of this provision
has been reversed corresponding to actual costs in the period
1-6/2007. It has not been necessary to change the estimates made when
the provision was entered.
COMMITMENTS AND 30.6.2007 30.6.2006 31.12.2006
CONTINGENCIES, MEUR
Collateral on own behalf
Chattel mortgages 0.0 0.0 0.0
Collateral for others
Guarantees 0.0 0.0 0.0
Other commitments
Commitments based
on agreements 0.1 0.1 0.1
Minimum rents payable
based on other lease agreements:
Within one year 6.3 5.3 6.1
Within 1-5 years 14.2 12.1 14.6
After five years 12.3 12.3 13.0
Total 32.8 29.7 33.8
The Group also has purchase
agreements based on IFRIC 4
which include a lease component
per IAS 17. Minimum payments based
on these agreements: 5.6 8.0 7.7
GROUP DERIVATIVE CONTRACTS, 30.6.2007 30.6.2006 31.12.2006
MEUR
Raw material derivatives
Fair value * 0.0
Amount, tonnes 5,000
Nominal value 2.6
* The fair value represents the return that would have arisen if the
derivative positions had been cleared on the balance sheet date.
The Group had no open derivative positions on 30 June 2007.
CONTINGENT LIABILITIES
The Group has contingent liabilities totalling MEUR 7.8. The tax
authorities have issued a claim to correct the company's income tax
for 2003. The tax authorities consider that the loss arising from
Alma Media's disposal of the shares of its associated company
Talentum to Kauppalehti Oy at the market price should not have been
tax-deductible. At the end of 2006 (20 December 2006) the company was
informed of a ruling by the Adjustments Board of the Corporate
Taxation Centre to the effect that the Adjustments Board rejected the
claim by the tax authorities. The tax authorities have appealed the
Adjustments Board's ruling to the Helsinki Administrative Court. The
company continues to believe that it is improbable that the claim
will lead to additional tax consequences since the transaction was
carried out at market prices for commercial reasons.
RELATED PARTIES
Alma Media Group's related parties are its associated companies and
the companies they own. The following table summarizes the operations
undertaken between Alma Media and its associated companies and the
status regarding their receivables and liabilities:
RELATED PARTY 1.1-30.6.2007 (6 1.1-31.12.2006 (12
ACTIVITIES months) months)
WITH ASSOCIATED
COMPANIES,
MEUR
Sales of goods and
services 0.1 0.4
Purchases of goods and
services 3.0 4.4
Accounts receivable,
loan
and other receivables
at the
balance sheet date 5.2 4.6
Accounts payable at
the balance
sheet date 0.3 0.1
Related parties also include the company's senior management (Board
of Directors, presidents and the Group Executive Team). The section
Option Rights of this interim report presents information on changes
to the current option scheme intended to motivate and secure the
long-term commitment of the Group's senior management.
MAIN ACCOUNTING PRINCIPALS (IFRS)
This interim report has been prepared applying the recognition and
measurement principles of IAS 34 (Interim Financial Reporting).
The interim report applies the same accounting principles and
calculation methods as in the previous annual accounts dated 31
December 2006. However, the interim report does not contain all the
information or notes to the accounts included in the annual report.
This interim report should therefore be read in conjunction with the
company's annual report for 2006.
The key indicators are calculated using the same formulae as applied
in the annual financial statements.
On 1 January 2007 the Group adopted the following new accounting
standards and interpretations:
IFRS 7 Financial Instruments: Disclosures
IAS 1 Presentation of Financial Statements: Capital Disclosures
IFRIC 8 Scope of IFRS 2
IFRIC 9 Re-assessment of Embedded Derivatives
IFRIC 10 Interim Financial Reporting and Impairment
The aforementioned new standards and interpretations have only a very
minor effect on the Group's income statement and balance sheet. Their
application mainly affects the notes to the accounts.
The Group's long-term receivable from the associated company Acta
Print Oy is shown in the balance sheet under assets available for
sale. Alma Media intends to relinquish its entire holding in Acta
Print Oy. This divestment is not expected to have a significant
impact on Alma Media's financial position.
The figures in this interim report are unaudited.
SEASONALITY
The Group recognizes its circulation revenues as paid. For this
reason circulation revenues accrue in the income statement fairly
evenly during the four quarters of the year. The bulk of circulation
invoicing takes place at the beginning of the year and therefore cash
flow from operating activities is strongest early in the year. This
also affects the company's balance sheet position in different
quarters.
USE OF ESTIMATES
This bulletin contains certain statements that are estimates based on
management's best knowledge at the time they were made. For this
reason they
contain risks and uncertainty. The estimates could change in the
event of
significant changes in business conditions.
NEXT INTERIM REPORT
Alma Media publishes its results for the first nine months of 2007 at
9.00 am (EET) on Friday 26 October 2007.
ALMA MEDIA CORPORATION
Board of Directors
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