2011-10-28 08:00:00 CEST
2011-10-28 08:02:05 CEST
REGULATED INFORMATION
Alma Media - Interim report (Q1 and Q3)
Alma Media's Interim Report for January-September 2011: Third-quarter revenue at comparison period level, increasing costs weakened operating profit
Alma Media Corporation Interim Report October 28, 2011 at 9:00am EEST
ALMA MEDIA'S INTERIM REPORT FOR JANUARY-SEPTEMBER 2011: THIRD-QUARTER REVENUE AT
COMPARISON PERIOD LEVEL, INCREASING COSTS WEAKENED OPERATING PROFIT
Financial performance July-September 2011:
- Revenue was MEUR 75.1 (75.2), down 0.2%.
- Circulation revenue was MEUR 32.5 (32.1), up 1.2%, advertising revenue MEUR
34.3 (33.8), up 1.5% and content and service revenue MEUR 8.3 (9.3), down 10.7%.
- Operating profit excluding non-recurring items was MEUR 12.0 (13.4), 16.0%
(17.8%) of revenue, down 10.3%.
- Operating profit was MEUR 12.4 (13.6), 16.5% (18.0%) of revenue, down 8.5%.
- Profit for the period was MEUR 12.2 (9.8), up 24.2%.
- Earnings per share were EUR 0.16 (0.13), up 21.7%.
Financial performance January-September 2011:
- Revenue was MEUR 234.9 (228.3), up 2.9%.
- Circulation revenue was MEUR 93.4 (93.5), down 0.0%, advertising revenue MEUR
114.7 (107.2), up 7.0% and content and service revenue MEUR 26.8 (27.7), down
3.2%.
- Operating profit excluding non-recurring items was MEUR 32.9 (33.0), 14.0%
(14.4%) of revenue, down 0.3%.
- Operating profit was MEUR 32.4 (32.7), 13.8 % (14.3 %) of revenue, down 0.8%.
- Profit for the period was MEUR 28.0 (23.9), up 16.8%.
- Earnings per share were EUR 0.36 (0.32), up 12.7%.
Key figures 2011 2010 Change 2011 2010 Change 2010
MEUR Q3 Q3 % Q1-Q3 Q1-Q3 % Q1-Q4
--------------------------------------------------------------------------------
Revenue 75.1 75.2 -0.1 -0.2 234.9 228.3 6.6 2.9 311.4
Circulation revenue 32.5 32.1 0.4 1.2 93.4 93.5 0.0 0.0 125.3
Advertising revenue 34.3 33.8 0.5 1.5 114.7 107.2 7.5 7.0 148.2
Content and service revenue
*) 8.3 9.3 -1.0 -10.7 26.8 27.7 -0.9 -3.2 37.8
Total expenses excluding non-
recurring items 63.1 61.9 1.3 2.0 202.2 195.7 6.5 3.3 267.6
--------------------------------------------------------------------------------
Operating profit excluding non-
recurring items 12.0 13.4 -1.4 -10.3 32.9 33.0 -0.1 -0.3 43.9
% of revenue 16.0 17.8 14.0 14.4 0.0 14.1
Operating profit 12.4 13.6 -1.2 -8.5 32.4 32.7 -0.2 -0.8 43.4
% of revenue 16.5 18.0 13.8 14.3 0.0 13.9
--------------------------------------------------------------------------------
Profit for the period 12.2 9.8 2.4 24.2 28.0 23.9 4.0 16.8 33.2
--------------------------------------------------------------------------------
Earnings per share, EUR (basic) 0.16 0.13 0.03 21.7 0.36 0.32 0.04 12.7 0.44
Earnings per share, EUR
(diluted) 0.16 0.13 0.03 21.2 0.35 0.32 0.04 12.2 0.44
*) Content and service revenue includes the Group's digital service and custom
media revenue as well as the external rental, distribution and printing revenue.
Outlook for 2011:
Alma Media's guidance for its financial performance in 2011 remains unchanged
from the financial statement release of February 16, 2011.
Alma Media repeats its estimate that the full-year revenue and operating profit
excluding non-recurring items is expected to increase from the 2010 level.
Revenue in 2010 was MEUR 311.4, operating profit excluding non-recurring items
MEUR 43.9 and operating profit MEUR 43.4.
Kai Telanne, President and CEO:
Increasing worries about the development of European economy slowed down the
growth of the Finnish media advertising market to 3.7% in the third quarter.
Newspaper advertising grew by 0.5% (7.2%) and online advertising by 20.3%
(38.1%) from the comparison period. The printed newspaper is still Finland's
largest advertising medium in terms of euros.
Alma Media's advertising sales grew by 1.5%, amounting to MEUR 34.3 (33.8).
Advertising sales for printed newspapers declined by 4.9%, whereas online
advertising sales grew by 20.6% from the comparison period. Among Alma Media
newspapers, online advertising sales enjoyed favourable development particularly
for Iltalehti and Aamulehti.
Alma Media's circulation revenue increased by 1.2%, totalling MEUR 32.5 (32.1).
Alma Media is planning to add the 9-per cent value added tax proposed by the
Finnish government on subscription-based newspapers directly to the subscription
prices starting from the beginning of 2012. The price increases are expected to
decrease the circulations of Alma Media's subscription-based newspapers.
Operating profit was weighed down by increases in printing and distribution
costs as well as IT-related costs.
The development of digital products and services proceeded according to plan in
the third quarter. During the quarter, Alma Media introduced, among other
things, Iltalehti's iPad and iPhone applications as well as the Nytmatkaan.fi
online travel service. In the Marketplaces business, Autotalli.com was opened
also for consumers' advertisements.
The share of digital products and services in Alma Media Group's revenue grew to
17.7% (15.1%) in the third quarter. Alma Media intends, according to its
strategy, further increase the share of digital services in its revenue by
product and services development and by acquisitions in Finland and abroad.
For further information, please contact:
Kai Telanne, President and CEO, telephone +358 10 665 3500
Tuomas Itkonen, CFO, telephone +358 10 665 2244
Conference, webcast and conference call:
The company will hold a conference in Finnish concerning its July-September
2011 results in the Carl conference room of Hotel Scandic Marski,
Mannerheimintie 10, Helsinki, at 1:00pm (EEST) on October 28, 2011. The results
will be presented by Kai Telanne, President and CEO, and Tuomas Itkonen, CFO.
Presentation materials for the event will be available online at
www.almamedia.fi/calendar at 1:00pm on the same day.
A webcast and conference call in English will start at 3:00 pm (EEST) on October
28, 2011. You may participate in the conference call by calling +44 (0)20
7136 2054 (confirmation code 6685424), or follow the event online at
www.almamedia.fi/investors (audio webcast).
Rauno Heinonen
Vice President, Corporate Communications and IR
Alma Media Corporation
DISTRIBUTION: NASDAQ OMX Helsinki, principal media
ALMA MEDIA GROUP INTERIM REPORT JANUARY 1-SEPTEMBER 30, 2011
The descriptive part of this review focuses on the result of January-September
2011. The figures are compared in accordance with the International Financial
Reporting Standards (IFRS) with those of the corresponding period in 2010,
unless otherwise stated. The figures in the tables are independently rounded.
KEY FIGURES 2011 2010 Change 2011 2010 Change 2010
MEUR Q3 Q3 % Q1-Q3 Q1-Q3 % Q1-Q4
--------------------------------------------------------------------------------
Revenue 75.1 75.2 -0.2 234.9 228.3 2.9 311.4
Total expenses excluding non-
recurring items 63.1 61.9 2.0 202.2 195.7 3.3 267.6
--------------------------------------------------------------------------------
Operating profit excluding non-
recurring items 12.0 13.4 -10.3 32.9 33.0 -0.3 43.9
% of revenue 16.0 17.8 14.0 14.4 14.1
Operating profit 12.4 13.6 -8.5 32.4 32.7 -0.8 43.4
% of revenue 16.5 18.0 13.8 14.3 13.9
--------------------------------------------------------------------------------
Profit before tax 15.6 13.4 17.1 36.7 32.9 11.6 45.0
Profit for the period 12.2 9.8 24.2 28.0 23.9 16.8 33.2
--------------------------------------------------------------------------------
Return on Equity/ROE
(Annual), %* 69.3 49.2 40.8 37.4 33.1 12.9 31.6 %
Return on Invests/ROI
(Annual), %* 61.1 47.6 28.4 36.3 32.4 12.0 31.1 %
Net financial expenses -0.9 0.1 795.6 -1.1 0.1 1410.1 -0.9
Net financial expenses, % of
revenue -1.2 0.2 796.7 -0.5 0.0 1373.2 -0.3
Balance sheet total 163.8 170.7 163.8 170.7 -4.0 184.5
Capital expenditure 1.6 4.1 -60.4 3.0 10.1 -70.0 12.9
Capital expenditure, % of
revenue 2.1 5.4 -60.4 1.3 4.4 -70.8 4.1
Equity ratio 64.6 69.4 64.6 69.4 -6.9 67.1
Gearing, % -13.3 -20.7 -13.3 -20.7 -35.6 -28.2
Interest-bearing net debt -12.4 -21.7 -12.4 -21.7 -42.9 -32.4
Interest-bearing liabilities 8.5 4.1 8.5 4.1 109.8 4.0
Non-interest-bearing
liabilities 62.2 61.7 62.2 61.7 1.0 65.7
Average no. of personnel,
calculated as full-time
employees, excl. delivery staff 1 867 1 861 0.3 1839 1810 1.6 1 806
Average no. of delivery staff 1 027 1 019 0.8 968 987 -1.9 962
--------------------------------------------------------------------------------
Share indicators
--------------------------------------------------------------------------------
Earnings per share, EUR (basic) 0.16 0.13 21.7 0.36 0.32 12.7 0.44
Earnings per share, EUR
(diluted) 0.16 0.13 21.2 0.35 0.32 12.2 0.44
Cash flow from operating
activities/share, EUR 0.06 0.07 -10.6 0.40 0.45 -10.5 0.61
Shareholders' equity per share,
EUR 1.20 1.37 0.00 1.20 1.37 -12.7 1.50
Dividend per share 0.70
Effective dividend yield 8.5
P/E Ratio 0.0 0.0 0.0 18.9
Market capitalization 457.5 516.4 0.0 457.5 516.4 -11.4 621.4
Average no. of shares (1,000
shares)
- basic 75487 75053 75290 74841 74894
- diluted 75884 75135 76478 75023 75086
No. of shares at end of period
(1,000 shares) 75 487 75 053 75 487 75 053 75 053
--------------------------------------------------------------------------------
*) see Main Accounting
Principles of the Interim
Report
MARKET CONDITIONS
The GDP of Finland is expected to grow by 2.5-3% in 2011.
According to TNS Gallup, the growth of the total advertising market slowed down
to 3.7% (10.9%) in July-September. Advertising in newspapers increased by 0.5%
to MEUR 115.3 (114.6). Advertising in online media continued its strong growth
in July-September with advertising spend increasing by 20.3% (38.1%). The
printed newspaper remains the most significant advertising medium in terms of
euros.
The total market for afternoon papers decreased by 2.9% (1.8%) during the third
quarter of 2011.
CHANGES IN GROUP STRUCTURE 2011
In February 2011, Alma Media acquired the majority (51%) of Mascus A/S. The
company is reported as a subsidiary company in the Marketplaces segment in Alma
Media's consolidated financial statements.
Further details of acquired businesses are given in the notes to this interim
report.
GROUP REVENUE AND RESULT JULY-SEPTEMBER 2011
The Group's revenue declined in the third quarter by 0.2% (up 3.0%) and totalled
MEUR 75.1 (75.2). The revenue from printed media was MEUR 56.7 (57.6),
representing 75.5% (76.5%) of the Group's total revenue. The revenue generated
by digital products and services grew by 17.1% and amounted to MEUR 13.3 (11.3).
The share of the digital products and services in the Group's revenue was 17.7%
(15.1%).
Revenue from advertising sales increased by 1.5% to MEUR 34.3 (33.8). The share
of advertising sales in the Group's total revenue was 45.7% (45.0%). Advertising
sales for printed media declined by 4.9% to MEUR 24.2 (25.5). Online advertising
sales increased by 20.6% to MEUR 9.9 (8.2).
The circulation revenue increased by 1.2% to MEUR 32.5 (32.1) due to increased
subscription prices.
The content and service revenue was MEUR 8.3 (9.3).
Total expenses excluding non-recurring items grew by 2.0% and totalled MEUR
63.1 (61.9). Total expenses grew by 2.3% to MEUR 63.1 (61.7). The growth in
total expenses was mainly attributable to an increase in printing and
distribution expenses as well as IT-related expenses.
The operating profit excluding non-recurring items decreased by 10.3% (increased
14.5%) and amounted to MEUR 12.0 (13.4). The operating profit excluding non-
recurring items was 16.0% (17.8%) of revenue. The operating profit was MEUR
12.4 (13.6) with the operating margin being 16.5% (18.0%).
The operating profit includes MEUR +0.4 (-0.3) in net non-recurring items. The
details of the non-recurring items are explained under Non-recurring items on
page 10 of this interim report.
Profit for July-September 2011 was MEUR 12.2 (9.8). Profit for the period
excluding non-recurring items was MEUR 11.8 (9.8).
GROUP REVENUE AND RESULT JANUARY-SEPTEMBER 2011
The January-September 2011 revenue for the Group increased by 2.9% (decreased
0.2%), amounting to MEUR 234.9 (228.3). The revenue from printed media was MEUR
175.5 (174.2), representing 74.7% (76.3%) of the Group's total revenue. The
revenue generated by digital products and services grew by 18.3% and amounted to
MEUR 41.9 (35.4). The share of the digital products and services in the Group's
revenue was 17.9% (15.5%).
The Group's revenue from advertising sales grew by 7.0% to MEUR 114.7 (107.2),
representing 48.8% (46.9%) of the total revenue. Advertising sales for printed
media increased by 1.6% to MEUR 82.1 (80.8). Online advertising sales grew by
23.7% to MEUR 32.0 (25.8). The circulation revenue amounted to MEUR 93.4 (93.5).
The content and service revenue was MEUR 26.8 (27.7).
Total expenses excluding non-recurring items grew by 3.3% and totalled MEUR
202.2 (195.7). Total expenses grew by 3.7% to MEUR 203.2 (196.0). The growth in
total expenses was mainly attributable to increases in personnel, printing and
distribution expenses as well as IT-related expenses.
The operating profit excluding non-recurring items decreased by 0.3% (up 5.0%)
and amounted to MEUR 32.9 (33.0). The operating margin excluding non-recurring
items was 14.0% (14.4%). The operating profit was MEUR 32.4 (32.7). The
operating margin decreased from the comparison period, being 13.8% (14.3%).
The operating profit includes MEUR -0.4 (-0.3) in net non-recurring items. The
details of the non-recurring items are explained under Non-recurring items on
page 10 of this interim report.
Profit for January-September 2011 was MEUR 28.0 (23.9). Profit for the period
excluding non-recurring items was MEUR 28.3 (24.4).
REVENUE AND OPERATING PROFIT/LOSS BY SEGMENT
REVENUE BY SEGMENT, 2011 2010 Change 2011 2010 Change 2010
MEUR Q3 Q3 % Q1-Q3 Q1-Q3 % Q1-Q4
-----------------------------------------------------------------------------
Newspapers
External 52.1 52.4 161.8 158.0 215.1
Inter-segments 1.0 1.1 3.1 3.2 4.1
-----------------------------------------------------------------------------
Newspapers total 53.1 53.5 -0.7 164.9 161.2 2.3 219.3
Kauppalehti Group
External 12.4 13.2 40.9 41.3 57.2
Inter-segments 0.2 0.1 0.6 0.5 0.7
-----------------------------------------------------------------------------
Kauppalehti Group total 12.6 13.3 -5.4 41.5 41.8 -0.7 57.9
Marketplaces
External 9.2 7.9 28.1 23.8 32.3
Inter-segments -0.1 0.0 -0.4 -0.2 -0.3
-----------------------------------------------------------------------------
Marketplace total 9.0 7.9 15.0 27.7 23.7 17.0 32.1
Other operations
External 1.4 1.7 4.1 5.2 6.7
Inter-segments 19.3 17.8 56.8 52.9 71.9
-----------------------------------------------------------------------------
Other operations total 20.6 19.6 5.6 60.9 58.2 4.7 78.5
Elimination -20.3 -19.0 -60.1 -56.5 -76.4
-----------------------------------------------------------------------------
Total 75.1 75.2 -0.2 234.9 228.3 2.9 311.4
-----------------------------------------------------------------------------
OPERATING PROFIT/LOSS BY SEGMENT, 2011 2010 Change 2011 2010 Change 2010
MEUR *) Q3 Q3 % Q1-Q3 Q1-Q3 % Q1-Q4
-----------------------------------------------------------------------------
Newspapers 7.0 8.3 -15.8 22.4 24.3 -8.1 32.9
Kauppalehti Group 2.0 2.4 -16.8 5.2 6.5 -20.0 8.2
Marketplaces 1.7 1.1 49.3 4.9 0.4 1070.6 0.4
Other operations 1.9 1.7 9.6 0.2 1.5 -86.2 1.9
-----------------------------------------------------------------------------
Total 12.4 13.6 -8.5 32.4 32.7 -0.8 43.4
-----------------------------------------------------------------------------
*) including non-recurring items
NEWSPAPERS
The Newspapers segment reports the publishing activities of 34 newspapers. The
largest titles are Aamulehti and Iltalehti.
Newspapers 2011 2010 Change 2011 2010 Change 2010
Key figures,
MEUR Q3 Q3 % Q1-Q3 Q1-Q3 % Q1-Q4
--------------------------------------------------------------------------------
Revenue 53.1 53.5 -0.7 164.9 161.2 2.3 219.3
Circulation
revenue 28.7 28.4 1.2 82.4 82.4 0.0 110.3
Advertising
revenue 23.6 23.9 -1.1 79.6 76.0 4.9 104.9
Content and
service
revenue 0.8 1.3 -37.2 2.9 2.8 1.6 4.1
Total
expenses
excluding
non-
recurring
items 46.2 45.4 1.8 142.1 137.1 3.6 186.3
--------------------------------------------------------------------------------
Operating
profit
excluding
non-
recurring
items 7.0 8.2 -15.1 22.8 24.3 -6.1 33.1
Operating
profit
excluding
non-
recurring
items, % 13.1 15.3 13.8 15.1 15.1
Operating
profit 7.0 8.3 -15.8 22.4 24.3 -8.1 32.9
Operating
profit, % 13.1 15.5 13.6 15.1 15.0
--------------------------------------------------------------------------------
Average no.
of
personnel,
calculated
as full-time
employees
excl.
delivery
staff 1.001 1.021 -2 984 976 1 972
Average no.
of delivery
staff 128 101 27 115 99 16 99
2011 2010 2011 2010 2010
Operational
key figures Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
--------------------------------------------------------------------------------
Audited
circulation
Iltalehti 107.052
Aamulehti 131.539
Online services, unique browsers, weekly
Iltalehti.fi 2,696,276 2,223,618 2,883,106 2,183,382 2,276,375
Telkku.com 584,493 590,364 650,503 609,612 616,325
Aamulehti.fi 305,903 308,970 330,157 283,655 299,467
--------------------------------------------------------------------------------
July-September 2011
The Newspapers segment's revenue decreased by 0.7% to MEUR 53.1 (53.5).
Advertising sales in the segment were down 1.1% (up 7.9%) and totalled MEUR
23.6 (23.9). Advertising sales for printed media decreased by 3.6% (increased by
5.5%). The segment's online advertising sales grew by 23.5% (39.9%). The growth
of online advertising sales particularly for Iltalehti and Aamulehti did not
fully cover the effect of the deceleration in printed media advertising sales.
The segment's circulation revenue increased by 1.2% to MEUR 28.7 (28.4).
The segment's total expenses excluding non-recurring items increased by 1.8% to
MEUR 46.2 (45.4). The total expenses amounted to MEUR 46.2 (45.3). The total
expenses grew mainly due to increases in printing and distribution expenses.
The segment's operating profit excluding non-recurring items was MEUR 7.0 (8.2)
and operating margin excluding non-recurring items 13.1% (15.3%). Operating
profit amounted to MEUR 7.0 (8.3) and the operating margin was 13.1% (15.5%).
January-September 2011
The Newspapers segment's revenue increased to MEUR 164.9 (161.2). Advertising
sales in the segment totalled MEUR 79.6 (76.0), up 4.9% (2.8%). Advertising
sales for printed media increased by 2.6% (0.0%). The segment's online
advertising sales grew by 25.7% (39.9%).
The segment's circulation revenue remained at the previous year's level of MEUR
82.4 (82.4).
The segment's total expenses excluding non-recurring items were MEUR 142.1
(137.4). Total expenses were MEUR 142.6 (137.1).
The segment's operating profit excluding non-recurring items was MEUR 22.8
(24.3) and the operating margin excluding non-recurring items 13.8% (15.1%). The
segment's operating profit was MEUR 22.4 (24.3) and the operating margin 13.6%
(15.1%).
KAUPPALEHTI GROUP
The Kauppalehti Group specialises in the production of business and financial
information as well as in the provision of marketing solutions. Its best known
title is Finland's leading business paper, Kauppalehti. The Group also includes
the custom media house Alma 360 Custom Media (former Alma Media Lehdentekijät,
Suomen Businessviestintä and TTNK Helsinki), and the news agency and media
monitoring unit BNS Group that operates in the Baltic countries.
Kauppalehti Group 2011 2010 Change 2011 2010 Change 2010
Key figures, MEUR Q3 Q3 % Q1-Q3 Q1-Q3 % Q1-Q4
--------------------------------------------------------------------------------
Revenue 12.6 13.3 -5.4 41.5 41.8 -0.7 57.9
Circulation revenue 3.8 3.7 0.9 11.1 11.0 0.0 15.0
Advertising revenue 3.2 3.6 -12.9 12.0 12.3 -2.6 17.7
Content and service
revenue 5.7 6.0 -4.8 18.4 18.4 0.0 25.2
Total expenses
excluding non-
recurring items 10.6 10.9 -2.9 36.3 35.3 2.8 49.7
--------------------------------------------------------------------------------
Operating profit
excluding non-
recurring items 2.0 2.4 -16.8 5.2 6.5 -20.0 8.2
Operating margin
excluding non-
recurring items, % 16.0 18.2 12.5 15.5 -19.4 14.2
Operating profit 2.0 2.4 -16.8 5.2 6.5 -20.0 8.2
Operating profit, % 16.0 18.2 12.5 15.5 -19.4 14.2
--------------------------------------------------------------------------------
Average no. of
personnel, calculated
as full-time employees
431 441 -2 433 436 -0.7 437
--------------------------------------------------------------------------------
2011 2010 2011 2010 2010
Operational key
figures Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
--------------------------------------------------------------------------------
Audited circulation
Kauppalehti 70.118
--------------------------------------------------------------------------------
Online services, unique browsers, weekly
Kauppalehti.fi 638,716 584,989 737,687 591,091 615,354
--------------------------------------------------------------------------------
July-September 2011
The revenue of the Kauppalehti Group in the third quarter amounted to MEUR 12.6
(13.3). The revenue of the review period decreased by 5.4% (decreased by 8.6%).
Online business accounted for 26.6% (24.4%) of the segment's revenue.
The segment's advertising sales decreased by 12.9% (increased by 18.8%),
amounting to MEUR 3.2 (3.6). Advertising sales for printed media was down by
15.0% (up 14.0%). Online advertising sales decreased by 10.7% (increased by
46.7%) from the comparison period.
The segment's circulation revenue grew from the comparison period and was MEUR
3.8 (3.7). The content and service revenue decreased to MEUR 5.7 (6.0).
The segment's total expenses amounted to MEUR 10.6 (10.9).
The operating profit of the Kauppalehti Group was MEUR 2.0 (2.4) and operating
margin 16.0% (18.2%). No non-recurring items were recognised during the review
period.
January-September 2011
The January-September revenue for the Kauppalehti Group was MEUR 41.5 (41.8).
The revenue during the review period was down 0.7% (down 11.0%). Online business
accounted for 24.8% (23.9%) of the segment's revenue.
The segment's advertising sales decreased by 2.6% (increased by 8.3%), amounting
to MEUR 12.0 (12.3). Advertising sales for printed media decreased by 3.9%
(increased by 5.9%). Online advertising sales decreased by 0.5% (increased by
34.5%) from the comparison period.
The segment's circulation revenue increased to MEUR 11.1 (11.0). The content and
service revenue remained at the previous year's level at MEUR 18.4 (18.4). Alma
360 Custom Media won new customers in a challenging market situation.
The segment's total expenses were MEUR 36.3 (35.3). No non-recurring items were
recognised during the review period.
The operating profit of the Kauppalehti Group was MEUR 5.2 (6.5) and operating
margin 12.5% (15.5%). No non-recurring items were recognised during the review
period.
MARKETPLACES
The Marketplaces segment reports classified services produced on the internet
and supported by printed products. The services in Finland are Etuovi.com,
Vuokraovi.com, Monster.fi, Autotalli.com, Mascus.fi and Mikko.fi. The services
outside Finland are Mascus, Bovision, Objektvision and City24.
Marketplaces 2011 2010 Change 2011 2010 Change 2010
Key figures, MEUR Q3 Q3 % Q1-Q3 Q1-Q3 % Q1-Q4
--------------------------------------------------------------------------------
Revenue 9.0 7.9 15.0 27.7 23.7 17.0 32.1
Operations in
Finland 7.7 6.7 14.3 23.8 20.3 17.3 27.5
Operations outside
Finland 1.4 1.2 19.4 4.2 3.6 15.6 4.9
Total expenses
excluding non-
recurring items 7.4 7.0 5.2 23.0 22.9 0.3 31.3
--------------------------------------------------------------------------------
Operating profit
excluding non-
recurring items 1.7 0.9 95.7 4.7 0.8 471.0 0.8
Operating margin
excluding non-
recurring items, % 18.5 10.9 17.0 3.5 389.5 2.6
Operating profit 1.7 1.1 49.3 4.9 0.4 1070.6 0.4
Operating margin, % 18.5 14.2 17.6 1.8 900.7 1.2
--------------------------------------------------------------------------------
Average no. of
personnel, calculated
as full-time employees 184 179 3 181 181 0 180
--------------------------------------------------------------------------------
2011 2010 2011 2010 2010
Operational key
figures Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
--------------------------------------------------------------------------------
Online services, unique browsers, weekly
Etuovi.com 424,284 420,896 462,335 414,797 413,044
Autotalli.com 86,030 92,882 100,033 94,420 91,182
Monster.fi 77,063 78,443 90,380 86,000 85,911
Mikko.fi 41,779 52,975 44,611 64,421 59,349
Mascus.com (Finland) 235,035 226,643 270,728 233,082 190,320
City24 144,760 146,522 144,820 190,842 190,842
Bovision 59,415 70,906 69,840 99,464 96,706
--------------------------------------------------------------------------------
July-September 2011
In the third quarter of 2011, the revenue of the Marketplaces segment increased
to MEUR 9.0 (7.9). The segment's advertising sales were MEUR 8.1 (7.0). The
positive revenue development is mainly attributable to new growth in recruitment
and home sales advertising.
The total expenses for the review period excluding non-recurring items increased
to MEUR 7.4 (7.0). The total expenses were MEUR 7.4 (6.7). The total expense
level of the Marketplaces segment increased due to planned marketing outlays and
increases in personnel expenses.
The operating profit of the Marketplaces segment grew to MEUR 1.7 (1.1) in the
third quarter. The operating profit excluding non-recurring items was MEUR 1.7
(0.9). The non-recurring item in the amount of MEUR 0.3 during the review period
was due to reorganisation.
January-September 2011
In January-September 2011, the revenue for the Marketplaces segment increased by
17.0% (15.6%), amounting to MEUR 27.7 (23.7). The segment's advertising sales
were MEUR 25.0 (21.0). The positive revenue development is mainly attributable
to new growth in recruitment and home sales advertising.
The total expenses for the review period excluding non-recurring items were MEUR
23.0 (22.9). Total expenses amounted to MEUR 23.0 (23.3).
The operating profit for the Marketplaces segment excluding non-recurring items
increased to MEUR 4.7 (0.8). The operating profit was MEUR 4.9 (0.4). The non-
recurring income during the review period was generated by mergers and
acquisitions. The non-recurring items in the amount of MEUR -0.4 during the
review period were due to reorganisation measures.
The Supreme Court did not grant a leave of appeal to either of the parties to
the dispute over the ETUOVI.COM trademark, which meant that the decision by the
Helsinki Court of Appeal in December 2010 remained in force and the long
trademark dispute was brought to a satisfactory end for Alma Media. According to
the Helsinki Court of Appeal, there are no obstacles for Alma Media to use the
ETUOVI.COM trademark to identify its internet services. In contrast, Alma Media
cannot use the ETUOVI.COM trademark as a trademark for a newspaper.
OTHER OPERATIONS
The Other operations segment reports the operations of the Group's printing and
distribution unit as well as parent company. The financial characteristics of
both are similar as they primarily provide services for the other business
segments.
Other operations 2011 2010 Change 2011 2010 Change 2010
Key figures, MEUR Q3 Q3 % Q1-Q3 Q1-Q3 % Q1-Q4
--------------------------------------------------------------------------------
Revenue 20.6 19.6 5.6 60.9 58.2 4.7 78.5
External 1.4 1.7 -20.8 4.1 5.2 -21.0 6.7
Inter-segments 19.3 17.8 8.1 56.8 52.9 7.3 71.9
Total expenses excluding
non-recurring items 19.2 17.7 8.6 60.6 56.8 6.9 76.7
--------------------------------------------------------------------------------
Operating profit
excluding non-recurring
items 1.5 1.9 -20.9 0.3 1.4 -76.4 1.8
Operating profit
excluding non-recurring
items, % 7.3 9.7 0.5 2.3 -77.4 2.3
Operating profit 1.9 1.7 9.6 0.2 1.5 -86.2 1.9
Operating profit, % 9.3 8.9 0.3 2.5 -86.9 2.5
--------------------------------------------------------------------------------
Average no. of
personnel, calculated as
full-time employees 251 221 14 240 217 10 217
Average no. of delivery
staff 899 919 -2 853 888 -4 863
--------------------------------------------------------------------------------
2011 2010 2011 2010 2010
Operational key figures Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
--------------------------------------------------------------------------------
Printing volume
(thousand units) 59,191 58,906 178,381 179,410 237,532
Paper usage (tons) 7,752 7,879 23,501 23,378 32,000
--------------------------------------------------------------------------------
In January 2011, Alma Media entered a financing agreement with Pohjola Bank Plc
concerning the financing of the machinery and movable property for its new
printing facility in the maximum amount of MEUR 50. A decision has been made to
purchase the printing press from Manroland AG and the finishing equipment from
Ferag AG. The investment is progressing according to plan, and the facility will
be taken into production use in early 2013.
The personnel cooperation negotiations related to the development and
rationalisation programme of Alma Media's printing and distribution company Alma
Manu Oy were completed in June. As a result of the negotiations, the number of
staff will be decreased by 54 full-time work years and printing operations in
Pori will be discontinued. The printing facility in Pori will be closed down by
the end of January 2012. As a result of the personnel negotiations, non-
recurring reorganisation expenses in the amount of MEUR 0.5 were recognised.
Alma Manu will expand its distribution operations in the province of Lapland.
The distribution of Lapin Kansa and Koillis-Lappi, both Alma Media newspapers,
will be transferred from Itella to Alma Manu in January 2012.
ASSOCIATED COMPANIES
Share of profit of associated companies 2011 2010 2011 2010 2010
MEUR Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
-------------------------------------------------------------------
Newspapers -0.1 0.0 -0.0 0.1 0.1
Kauppalehti Group
Talentum Oyj 2.1 -0.3 2.5 -0.1 0.0
Marketplaces -0.0 -0.0 -0.1 -0.0 -0.1
Other operations
Other associated companies 0.3 0.3 0.7 0.4 0.6
-------------------------------------------------------------------
Total 2.3 -0.1 3.2 0.3 0.7
The share of Talentum Plc's result for the third quarter of 2011 includes the
profit from the sale of shares announced by Talentum on August 9, 2011.
Alma Media Group holds a 32.14-% stake in Talentum Oyj, which is reported under
the Kauppalehti Group. The company's own shares in the possession of Talentum
are here included in the total number of shares. In the consolidated financial
statements of Alma Media the own shares held by Talentum itself are not included
in the total number of shares. Alma Media's shareholding in Talentum is stated
as 32.64% in its consolidated financial statements of December 31, 2010 and in
this interim report.
NON-RECURRING ITEMS
Non-recurring item is an income or expense arising from non-recurring or rare
events. Gains or losses from the sale of business operations or assets, gains or
losses from discontinuing or restructuring business operations as well as
impairment losses of goodwill and other assets are recognised as non-recurring
items. Non-recurring items are recognised within the corresponding income or
expense group.
NON-RECURRING ITEMS 2011 2010 2011 2010 2010
MEUR Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
-------------------------------------------------------------------
Newspapers
Restructuring 0.1 -0.5 -0.4
Gains on sales of assets 0.2
-------------------------------------------------------------------
Marketplaces
Restructuring 0.3 -0.4 -0.5
Gains on sales of assets 0.2
-------------------------------------------------------------------
Other operations
Restructuring -0.2 -0.5 0.1 0.1
Gains on sales of assets 0.4 0.4 0.0
NON-RECURRING ITEMS IN OPERATING PROFIT 0.4 0.2 -0.4 -0.3 -0.5
-------------------------------------------------------------------
Translation differences -0.1 0.1 -0.1 -0.1
----------------------------
NON-RECURRING ITEMS IN FINANCIAL ITEMS -0.1 0.1 -0.1 -0.1
-------------------------------------------------------------------
BALANCE SHEET AND FINANCIAL POSITION
The consolidated balance sheet stood at MEUR 163.8 (170.7) at the end of
September 2011. Alma Media's equity ratio at the end of September was 64.6%
(69.4%) and equity per share was EUR 1.20 (1.37).
The Group's interest-bearing net debt at the end of September was MEUR -12.4 (-
21.7). The fair value of financial assets recognised at fair value through
profit or loss on September 30, 2011 was MEUR 7.9, and that of the liabilities
MEUR 2.0.
The consolidated cash flow from operations in January-September 2011 was MEUR
30.4 (33.8). Cash flow before financing was MEUR 30.6 (33.0). During the
comparison period, cash flow from investing activities was affected primarily by
mergers and acquisitions.
The Group currently has a MEUR 100.0 commercial paper programme in Finland under
which it is permitted to issue papers to a total amount of MEUR 0-100. The
unused part of the programme was MEUR 95.0 on September 30, 2011. In addition,
the Group has a credit limit in the amount of MEUR 30.0 valid until October
10, 2013, which on September 30, 2011 was totally unused.
CAPITAL EXPENDITURE
Alma Media Group's capital expenditure in January-September 2011 totalled MEUR
4.1 (10.1), consisting mainly of development projects related with digital
services. Other expenditure was related with normal operational and replacement
investments.
The investment in the printing facility in Tampere is proceeding according to
plan. The new printing facility will be operational in early 2013.
ADMINISTRATION
Alma Media Corporation's Annual General Meeting (AGM) held on March 17, 2011
elected Timo Aukia, Petri Niemisvirta, Seppo Paatelainen, Kai Seikku, Erkki
Solja, Catharina Stackelberg-Hammarén and Harri Suutari members of the company's
Board of Directors. In its constitutive meeting held after the AGM, the Board of
Directors elected Seppo Paatelainen its Chairman.
The Board also elected the members of its committees. Timo Aukia, Kai Seikku,
Catharina Stackelberg-Hammarén and Harri Suutari as chairman were elected
members of the Audit Committee. Petri Niemisvirta and Erkki Solja, as well as
Seppo Paatelainen as Chairman, were elected members of the Nomination and
Compensation Committee.
The Board of Directors of Alma Media Corporation has evaluated that Timo Aukia,
Petri Niemisvirta and Seppo Paatelainen are independent of the company but
dependent on its significant shareholders. The other members of the Board of
Directors are evaluated to be independent of the company and its significant
shareholders.
Mikko Korttila, General Counsel of Alma Media Corporation, was appointed
secretary to the Board of Directors.
The AGM appointed Ernst & Young Oy as the company's auditors.
The Regional State Administrative Agency for Southern Finland in August approved
an application by Oy Herttaässä Ab, an Alma Media Corporation shareholder, for a
special audit on Alma Media to the extent that the application concerned the
actions of the Nomination and Compensation Committee and its predecessor, the
Election Committee, and how the principle of equality has been taken into
account in the operations of the Committees. Alma Media has decided to appeal
against the decision to the Hämeenlinna Administrative Court. In addition to
revoking the decision by the Regional State Administrative Agency, Alma Media
will apply for a suspension of the enforcement until the matter has been
resolved.
Mr Pekka Heinänen, Master of Arts (Education), age 51, started as Alma Media's
Vice President, Human Resources and as a member of the Group's Executive team on
August 15, 2011.
Alma Media Corporation applies the Finnish Corporate Governance Code for listed
companies, issued by the Securities Market Association on June 15, 2010, in its
unaltered form. The Corporate Governance Statement for 2010 is published
separately atwww.almamedia.fi/corporate_governance.
DIVIDENDS
The Annual General Meeting resolved to distribute a dividend of EUR 0.70 per
share for the financial year 2010 in accordance with the proposal of the Board
of Directors. The dividend was paid on March 29, 2011 to shareholders who were
registered in Alma Media Corporation's shareholder register maintained by
Euroclear Finland Oy on the record date, March 22, 2011. The company paid a
total of MEUR 52.5 (29.8) in dividends to its shareholders in March.
THE ALMA MEDIA SHARE
In July-September, altogether 9,005,064 Alma Media shares were traded at NASDAQ
OMX Helsinki Stock Exchange, representing 11.9% of the total number of shares.
The closing price of the Alma Media share at the end of the last trading day of
the reporting period, September 30, 2011, was EUR 6.06. The lowest quotation
during the reporting period was EUR 5.40 and the highest EUR 7.01. Alma Media
Corporation's market capitalisation at the end of the review period was MEUR
457.5.
The Annual General Meeting on March 17, 2011 authorised the Board of Directors
to decide on a share issue. The authorisation would entitle the Board to issue a
maximum of 7,500,000 shares. This maximum amount of shares corresponds to
approximately 10% of the total number of shares of the company. The share issue
can be implemented by issuing new shares or transferring shares presently in
possession of the company. The authorisation entitles the Board to decide on a
directed share issue, which would entail deviating from the pre-emption rights
of shareholders. The Board may use the authorisation in one or more parts.
The Board may use the authorisation for developing the capital structure of the
company, widening the ownership base, financing or realising acquisitions or
other similar arrangements, or for other purposes decided upon by the Board. The
authorisation, however, may not be used for the incentive and commitment systems
for the company's management. The authorisation is in effect until March
17, 2013.
By April 30, 2011, a total of 434,330 shares were subscribed by using the option
rights granted under the option programme 2006B. Due to the subscriptions, the
share capital of the company increased to EUR 45,292,111.80. After the issuance,
the total number of shares of Alma Media Corporation is 75,486,853.
OPTION RIGHTS
Alma Media has the option programmes 2006 and 2009. The programmes are incentive
and commitment systems for the company's management. If all the subscription
rights are exercised, the programmes 2006 and 2009 will dilute the holdings of
the earlier shareholders by a maximum of 3.33%. Further details about the
programmes are given in the notes of this interim report.
A total of 640,000 2009C options were granted during the review period. The
subscription price is EUR 7.95.
MARKET LIQUIDITY GUARANTEE
There is no market liquidity guarantee in effect for the Alma Media share.
FLAGGING NOTICES
In January-June 2011, Alma Media did not receive notices of changes in
shareholdings pursuant to Chapter 2, Section 9 of the Securities Markets Act.
RISKS AND RISK MANAGEMENT
The purpose of Alma Media Group's risk management activities is to continuously
evaluate and manage all opportunities, threats and risks in conjunction with the
company's operations to enable the company to reach its set objectives and to
secure business continuity.
The risk management process identifies the risks, develops appropriate risk
management methods and regularly reports on risk issues to the risk management
organisation. Risk management is part of Alma Media's internal audit function
and thereby part of good corporate governance. Limits and processing methods are
set for quantitative and qualitative risk methods by the corporate risk
management system.
The most critical strategic risks for Alma Media are a significant drop in the
subscriptions, numbers of visitors or in the readership of its publications, a
decline in advertising sales and a significant increase in distribution and
delivery costs. Fluctuating economic cycles are reflected on the development of
advertising sales, which accounts for approximately half of the Group's revenue.
Developing businesses outside Finland such as in the Baltic countries and other
East European countries include country-specific risks relating to market
development and economic growth.
In the long term, the media business will undergo changes along with the
transformation in media consumption and technological developments. The Group's
strategic objective is to meet this challenge through renewal and the
development of new business operations in online media. The most important
operational risks are disturbances in information technology systems and
telecommunication, and an interruption of printing operations.
OUTLOOK FOR 2011
Alma Media expects newspaper and online advertising to grow in 2011 compared
with the previous year. Alma Media estimates the single-copy sales of afternoon
papers to decline further. The circulation revenue of regional and local papers
as well as Kauppalehti is expected to remain at the comparison period's level.
The material and delivery costs of the Group are anticipated to increase from
the level of the comparison period.
Alma Media estimates that its full-year revenue and operating profit excluding
non-recurring items will grow from the 2010 levels. Revenue in 2010 totalled
MEUR 311.4, operating profit excluding non-recurring items MEUR 43.9 and
operating profit was MEUR 43.4.
EVENTS AFTER THE REVIEW PERIOD
Alma Media Corporation has signed a two-year credit facility for EUR 30 million
with Pohjola Bank. The credit facility, valid until October 10, 2013, further
strengthens the financing structure and liquidity of Alma Media Group and
diversifies the range of available financial instruments.
THE NEXT INTERIM REPORT
Alma Media will publish its fourth quarter and full-year 2011 result on
Wednesday, February 15, 2012.
ALMA MEDIA CORPORATION
Board of Directors
2011 2010 Change 2011 2010 Change 2010
COMPREHENSIVE INCOME Q3 Q3 % Q1-Q3 Q1-Q3 % Q1-Q4
STATEMENT, MEUR
--------------------------------------------------------------------------------
REVENUE 75.1 75.2 -0.2 234.9 228.3 2.9 311.4
Other operating income 0.5 0.0 861.0 0.7 0.3 116.1 0.4
Materials and services 21.8 21.5 1.1 66.7 66.6 0.2 89.4
Employee benefits
expense 26.8 26.5 0.9 88.3 84.6 4.4 117.2
Depreciation,
amortization and
impairment 2.2 2.3 -4.2 6.8 7.1 -4.8 9.5
Other operating expenses 12.4 11.3 9.2 41.4 37.7 9.8 52.4
--------------------------------------------------------------------------------
OPERATING PROFIT 12.4 13.6 32.4 32.7 -0.8 43.4
Finance income 1.2 0.1 721.9 2.0 0.5 285.0 1.5
Finance expenses 0.2 0.3 -17.9 0.9 0.7 29.5 0.6
Share of profit of
associated companies 2.3 -0.1 3053.0 3.2 0.3 923.3 0.7
--------------------------------------------------------------------------------
PROFIT BEFORE TAX 15.6 13.4 17.1 36.7 32.9 11.6 45.0
--------------------------------------------------------------------------------
Income tax 3.4 3.5 -2.8 8.7 9.0 -2.4 11.8
--------------------------------------------------------------------------------
PROFIT FOR THE PERIOD 12.2 9.8 24.2 28.0 23.9 16.8 33.2
--------------------------------------------------------------------------------
OTHER COMPREHENSIVE
INCOME
Change in translation
differences -0.1 0.3 -118.3 -0.3 0.4 -167.6 0.6
Share of other
comprehensive income of
associated companies -0.2 0.3 -183.1 -0.4 0.7 -151.6 0.9
Income tax relating to
components of other
comprehensive income
--------------------------------------------------------------------------------
Other comprehensive
income for the period,
net of tax -0.3 0.6 -148.4 -0.7 1.2 -157.6 1.5
--------------------------------------------------------------------------------
TOTAL COMPREHENSIVE
INCOME FOR THE PERIOD 12.0 10.4 15.5 27.3 25.1 8.6 34.7
--------------------------------------------------------------------------------
Profit for the period
attributable to
Owners of the parent 11.9 9.7 26.8 23.7 32.8
Non-controlling interest 0.4 0.1 1.1 0.3 0.3
Total comprehensive income for the period
attributable to
Owners of the parent 11.7 10.3 26.2 24.9 34.4
Non-controlling interest 0.4 0.1 1.1 0.3 0.3
Earnings per share calculated from the
profit for the period attributable to the
parent company shareholders
Earnings per share
(basic), EUR 0.16 0.13 0.36 0.32 0.44
Earnings per share
(diluted), EUR 0.16 0.13 0.35 0.32 0.44
BALANCE SHEET, MEUR Sep 31 2011 Sep 31 2010 31 Dec 2010
-------------------------------------------------------------------------------
ASSETS
NON-CURRENT ASSETS
Goodwill 30.4 29.5 30.4
Other intangible assets 10.1 10.3 10.5
Tangible assets 24.1 29.0 27.8
Investments in associated companies 35.4 33.1 33.6
Other non-current financial assets 8.5 12.7 11.8
Deferred tax assets 0.3 0.8 0.2
CURRENT ASSETS
Inventories 1.1 0.9 1.0
Current tax assets 2.1 0.0 3.5
Trade receivable and other receivables 27.6 26.3 27.0
Other current financial assets 3.4 2.4 2.3
Cash and cash equivalents 20.9 25.8 36.3
TOTAL ASSETS 163.8 170.7 184.5
-------------------------------------------------------------------------------
BALANCE SHEET, MEUR Sep 31 2011 Sep 31 2010 31 Dec 2010
-------------------------------------------------------------------------------
EQUITY AND LIABILITIES
Share capital 45.3 45.0 45.0
Share premium reserve 7.7 4.7 4.7
Foreign currency translation reserve 0.0 0.1 0.4
Retained earnings 37.4 53.1 62.7
-------------------------------------------------------------------------------
Equity attributable to owners of the parent 90.4 103.0 112.8
Non-controlling interest 2.6 2.0 2.0
-------------------------------------------------------------------------------
TOTAL EQUITY 93.1 105.0 114.8
-------------------------------------------------------------------------------
LIABILITIES
NON-CURRENT LIABILITIES
Non-current interest-bearing liabilities 2.1 2.5 2.4
Deferred tax liabilities 2.3 2.9 2.4
Pension obligations 2.6 2.8 2.8
Provisions 0.1 0.1 0.1
Other financial liabilities 0.8 2.8 2.5
Other non-current liabilities 0.3 0.0 0.4
CURRENT LIABILITIES
Current interest-bearing liabilities 6.5 1.6 1.6
Advances received 19.7 19.4 13.4
Income tax liability 0.0 0.4 3.6
Provisions 0.9 0.2 0.6
Trade and other payables 35.4 33.1 39.9
-------------------------------------------------------------------------------
TOTAL LIABILITIES 70.8 65.7 69.7
-------------------------------------------------------------------------------
TOTAL EQUITY AND LIABILITIES 163.8 170.7 184.5
-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGE
IN EQUITY
Attributable to equity holders of the Parent
Company
| | |
MEUR A B C D| E| F| G
------------------------------------------------+-----+-------------------+-----
Equity Jan 1 2011 45.0 4.7 0.4 62.7|112.8| 2.0|114.8
------------------------------------------------+-----+-------------------+-----
Profit for the period 26.8| 26.8| 1.1| 28.0
| | |
Other comprehensive income -0.3 -0.4| -0.7| | -0.7
| | |
Transactions with equity | | |
holders of the parent and | | |
non-controlling interest | | |
| | |
Dividends paid by parent -52.4|-52.4| |-52.4
| | |
Dividends paid by | | |
subsidiaries | | -0.7| -0.7 | | |
Share-based payments 0.7| 0.7| | 0.7
| | |
Excercised share options 0.3 3.0 | 3.3| | 3.3
| | |
Business combinations | | 0.1| 0.1
------------------------------------------------+-----+-------------------+-----
Equity Sep 31 2011 45.3 7.7 0.0 37.4| 90.4| 2.6| 93.1
------------------------------------------------+-----+-------------------+-----
Attributable to equity holders of the Parent
Company
| | |
MEUR A B C D| E| F| G
------------------------------------------------+-----+-------------------+-----
Equity Jan 1 2010 44.8 2.8 -0.3 47.4| 94.7| 0.2| 94.9
------------------------------------------------+-----+-------------------+-----
Profit for the period 23.7| 23.7| 0.3| 23.9
| | |
Other comprehensive income 0.4 0.7| 1.2| | 1.2
| | |
Transactions with equity | | |
holders of the parent and | | |
non-controlling interest | | |
| | |
Dividends paid by parent -29.8|-29.8| |-29.8
| | |
Dividends paid by | | |
subsidiaries | | -0.2| -0.2
| | |
Share-based payments 0.5| 0.5| | 0.5
| | |
Share of items recognized | | |
directly in associated | | |
company's equity | | |
------------------------------------------------+-----+-------------------+-----
Equity Sep 31 2010 45.0 4.7 0.1 53.1|103.0| 2.0|105.0
------------------------------------------------+-----+-------------------+-----
Column headings on Consolidated Statement of Change in Equity
A=Share capital
B=Share premium reserve
C=Translation difference
D=Retained earnings
E=Total
F=Non-controlling interest
G=Equity total
2011 2010 2011 2010 2010
CASH FLOW STATEMENT, MEUR Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
--------------------------------------------------------------------------------
Operating activities
Profit for the period 12.2 9.8 28.0 23.9 33.2
Adjustments 3.2 5.9 12.3 15.0 20.3
Change in working capital -8.2 -8.0 0.2 4.1 5.3
Dividends received 0.6 0.0 1.0 0.9 1.0
Interest received 0.3 0.1 0.8 0.2 0.3
Interest paid and other finance expenses -0.2 -0.1 -0.8 -0.5 -0.7
Income taxes paid -3.5 -2.8 -11.0 -9.9 -13.2
--------------------------------------------------------------------------------
Net cash flows from operating activities 4.4 4.9 30.4 33.8 46.1
Investing activities
Acquisitions of tangible and intangible assets -0.4 -1.0 -1.9 -2.3 -3.3
Proceeds from sale of other investments 0.0 0.0 0.1 0.0 0.0
Change in loan receivables 0.0 0.1 0.0 0.0 0.1
Acquisition of subsidiaries -0.1 0.0 0.0 -1.7 -2.3
Acquisition of associated companies -0.1 -0.4 -0.3 -0.7 -0.8
Proceeds from sale of subsidiaries 0.0 3.9 2.1 3.9 3.9
Proceeds from sale of associated companies 0.0 0.0 0.3 0.0 0.0
--------------------------------------------------------------------------------
Net cash flows from / (used in) investing activities -0.5 2.6 0.2 -0.7 -2.4
Cash flow before financing activities 3.9 7.4 30.6 33.0 43.7
Financing activities
Proceeds from exercise of share options 0.0 0.0 3.3 2.1 2.1
Current loans taken 0.0 0.0 15.0 0.0 0.0
Repayment of current loans -6.3 -0.4 -11.0 -1.2 -1.6
Change in interest-bearing receivables 0.1 -0.1 0.2 0.6 0.8
Dividends paid 0.0 0.0 -53.2 -30.0 -30.0
--------------------------------------------------------------------------------
Net cash flows from / (used in) financing activities -6.2 -0.5 -45.8 -28.5 -28.6
Change in cash and cash equivalent funds (increase +
/ decrease -) -2.3 6.9 -15.1 4.5 15.1
Cash and cash equivalents at beginning of period 23.2 18.8 36.3 21.1 21.1
Effect of change in foreign exchange rates 0.0 0.1 -0.3 0.2 0.2
Cash and cash equivalents at end of period 20.9 25.8 20.9 25.8 36.3
ACQUIRED BUSINESSES IN 2011
In February 2011 Alma Media acquired the majority (51%) of Mascus A/S in
Denmark.
The goodwill from the business combinations is mainly from the expected
synergies. No change in the fair values of the assets was recognised at the
acquisition. The acquisition had no major impact on the consolidated financial
statements.
CONTINGENT CONSIDERATIONS
Contingent considerations are classified as financial assets and liabilities
recognised at fair value through profit or loss. The amount of the contingent
considerations due to the acquisitions and business arrangements in 2010 is
based on the revenue and operating profits of the acquired business during
2010-2013. The fair values are the estimated final considerations discounted to
the balance sheet date. The minimum realisable value of the contingent
considerations is 0.2 MEUR.
CONTINGENT CONSIDERATION ASSETS
--------------------------------------------------------------------------------
Initial recognition of the assets 8.4
Change in fair value during previous financial years 0.8
Considerations, settled in cash -2.1
Change in fair value during the financial year 0.7
--------------------------------------------------------------------------------
Fair value of the contingent consideration assets in the end of the period 7.9
CONTINGENT CONSIDERATION LIABILITY
--------------------------------------------------------------------------------
Intial recognition of the liability 2.9
Change in fair value during previous financial years -0.1
Considerations, settled in cash -0.4
Change in fair value during the financial year -0.4
--------------------------------------------------------------------------------
Fair value of the contingent consideration liability in the end of the
period 2.0
REVENUE BY GEOGRAPHICAL AREA, 2011 2010 2011 2010 2010
MEUR Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
---------------------------------------------------------
Finland 71.4 71.9 224.2 218.8 298.4
Other EU countries 3.5 3.2 9.9 8.9 12.1
Other countries 0.2 0.1 0.8 0.6 0.8
---------------------------------------------------------
Total 75.1 75.2 234.9 228.3 311.4
INFORMATION BY SEGMENT
The business segments of Alma Media are Newspapers, Kauppalehti Group,
Marketplaces and Other operations. The descriptive section of the financial
statements presents the revenue and operating profits of the segments and the
allocation of the associated companies' results to the reporting segments.
The following table presents the assets and liabilities by segment as well as
the non-allocated asset and liability items.
ASSETS BY SEGMENT, MEUR Sep 31 2011 Sep 31 2010 31 Dec 2010
-----------------------------------------------------------------------------
Newspapers 45.2 45.0 46.3
Kauppalehti Group 43.9 43.9 41.3
Marketplaces 24.5 13.6 21.7
Other operations 20.6 35.2 28.5
Non-allocated assets and eliminations 29.5 33.1 46.7
-----------------------------------------------------------------------------
Total 163.8 170.7 184.5
LIABILITIES BY SEGMENT, MEUR Sep 31 2011 Sep 31 2010 31 Dec 2010
-----------------------------------------------------------------------------
Newspapers 30.1 29.3 27.4
Kauppalehti Group 10.2 10.5 10.4
Marketplaces 7.4 4.4 7.4
Other operations 11.1 14.2 14.3
Non-allocated liabilities and 12.1 7.3 10.2
eliminations
-----------------------------------------------------------------------------
Total 70.8 65.7 69.7
2011 2010 2011 2010 2010
CAPITAL EXPENDITURE, MEUR Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
-----------------------------------------------------
Newspapers 0.4 0.5 1.4 3.0 4.0
Kauppalehti Group 0.1 0.2 0.5 0.6 1.4
Marketplaces 0.3 2.8 1.5 5.0 5.6
Others 0.3 0.7 0.7 1.4 1.8
-----------------------------------------------------
Total 1.2 4.2 4.1 10.1 12.9
-----------------------------------------------------
PROVISIONS
The company's provisions totalled MEUR 1.0 (0.1) on September 30, 2011. The
major part of the provisions consists of restructuring provisions. It has not
been necessary to change the estimates made when the provisions were entered.
COMMITMENTS AND CONTINGENCIES, MEUR Sep 31 2011 Sep 31 2010 31 Dec 2010
--------------------------------------------------------------------------------
Collateral for others
Guarantees 0.0 0.0 0.0
Other commitments
Commitments based on agreements 0.0 0.1 0.1
Minimum lease payments on other lease
agreements:
Within one year 6.9 6.5 6.6
Within 1-5 years 22.9 20.1 21.1
After 5 years 44.9 51.2 48.2
--------------------------------------------------------------------------------
Total 74.7 77.7 75.9
The Group also has purchase agreements that
based on IFRIC 4
include a lease component as per IAS 17.
Minimum payments based on these agreements: 1.7 1.4 1.2
--------------------------------------------------------------------------------
Changes in commitments and contingencies are mainly due to the new and extended
lease contracts made during 2010 for the real estates.
Additionally, the company has signed a lease contract for the real estate of the
printing facility. According to the IAS 17 standard, the contract will be
recognised as a finance lease contract when the printing facility will be
operational. The printing facility is estimated to be operational in early
2013. The balance sheet values recognised in financial year 2013 are expected to
be maximum MEUR 70.
DERIVATIVE CONTRACTS, MEUR Sep 31 2011 Sep 31 2010 31 Dec 2010
--------------------------------------------------------------------------------
Commodity derivate contracts.
electricity
derivatives
Fair value * 0.0 0.1 0.3
Nominal value 1.2 1.1 1.0
--------------------------------------------------------------------------------
* The fair-value represents the return that would have arisen if the
derivative had been cleared on the balance sheet date.
RELATED PARTIES
Alma Media Group's related parties are the major shareholders of the parent
company, associated companies and companies owned by them. Related parties also
include the company's senior management and their related parties (members of
the Board of Directors, presidents and the Group Executive Team). The following
table summarises the business operations undertaken between Alma Media and its
related parties and the status of their receivables and liabilities:
2011 2010 2011 2010 2010
RELATED PARTY TRANSACTIONS, MEUR Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4
----------------------------------------------------------------------
Sales of goods and services 0.1 0.1 0.2 0.2 0.2
Purchases of goods and services 0.9 0.9 3.0 2.7 3.6
Trade receivable, loan and other
receivables at the end of reporting period 0.0 0.0 0.0
Trade payable at the reporting date 0.1 0.1 0.1
----------------------------------------------------------------------
OPTION RIGHTS
Alma Media has option programmes 2006 and 2009. The programmes are incentive and
commitment systems for the company's management.
The option programmes 2006A and 2006B have expired.
A total of 520,000 options have been issued under the 2006C programme. The share
subscription period for 2006C is April 1, 2010-April 30, 2012. The management
has 470,000 options in its possession. The share subscription price has been
reduced annually by the dividend per share, and was EUR 7.66 in September 2011.
No shares have been subscribed by September 30, 2011 under the programme 2006C.
If all subscription rights are exercised, the programme 2006 will dilute the
holdings of the earlier shareholders by 0.62%.
Under option programme 2009 a total of 2,130,000 stock options may be granted
during 2009-2011, and these may be exercised to subscribe to a maximum of
2,130,000 Alma Media shares. Of the total number of options, 710,000 were marked
2009A, 710,000 were marked 2009B and 710,000 were marked 2009C.
A total of 640,000 options have been issued under the 2009A programme. Share
subscription period for 2009A is April 1, 2012-March 31, 2014. The management
has 610,000 options in its possession. The share subscription price has been
reduced annually by the dividend per share, and was EUR 4.11 in September 2011.
A total of 610,000 options have been issued under the 2009B programme. Share
subscription period for 2009B is April 1, 2013-March 31, 2015. The management
has 610,000 options in its possession. The share subscription price has been
reduced annually by the dividend per share, and was EUR 6.63 in September 2011.
A total of 640,000 options have been issued under the 2009C programme. Share
subscription period for 2009C is April 1, 2014-March 31, 2016. The management
has 640,000 options in its possession. The share subscription price was EUR
7.95 in September 2011.
If all the subscription rights are exercised, the programmes 2006 and 2009 will
dilute the holdings of the earlier shareholders by 3.33% maximum.
QUARTERLY INFORMATION
| | | | | |
| 2011| 2011 2011 2010| 2010| 2010 2010 2009| 2009|
| | | | | |
MEUR | Q3| Q2 Q1 Q4| Q3| Q2 Q1 Q4| Q3|
-------------------------+-----+-----------------+-----+-----------------+-----+
Revenue | | | | | |
| | | | | |
Newspapers | 53.1| 57.9 53.8 58.1| 53.5| 55.4 52.2 55.9| 51.7|
| | | | | |
Kauppalehti Group | 12.6| 15.0 13.9 16.1| 13.3| 14.4 14.1 15.8| 14.4|
| | | | | |
Marketplaces | 9.0| 9.5 9.1 8.4| 7.9| 8.2 7.6 6.5| 6.2|
| | | | | |
Other operations | 20.6| 20.7 19.6 20.4| 19.6| 19.3 19.3 18.3| 17.7|
| | | | | |
Eliminations |-20.3|-20.4 -19.3 -19.9|-19.0|-18.7 -18.8 -17.6|-17.1|
-------------------------+-----+-----------------+-----+-----------------+-----+
REVENUE | 75.1| 82.7 77.1 83.0| 75.2| 78.7 74.4 79.0| 72.9|
-------------------------+-----+-----------------+-----+-----------------+-----+
Total expenses excluding | | | | | |
non-recurring items | | | | | |
| | | | | |
Newspapers | 46.2| 48.8 47.2 49.2| 45.4| 46.5 45.3 47.3| 44.8|
| | | | | |
Kauppalehti Group | 10.6| 13.0 12.7 14.4| 10.9| 11.9 12.5 13.9| 12.3|
| | | | | |
Marketplaces | 7.4| 8.0 7.7 8.4| 7.0| 8.3 7.6 6.8| 6.1|
| | | | | |
Other operations | 19.2| 21.9 19.6 19.9| 17.7| 19.6 19.5 17.4| 15.4|
-------------------------+-----+-----------------+-----+-----------------+-----+
TOTAL EXPENSES EXCLUDING | | | | | |
NON-RECURRING ITEMS | 63.1| 71.2 67.8 72.0| 61.9| 67.7 66.1 67.8| 61.3|
-------------------------+-----+-----------------+-----+-----------------+-----+
Operating profit | | | | | |
excluding non-recurring | | | | | |
items | | | | | |
| | | | | |
Newspapers | 7.0| 9.2 6.7 8.7| 8.2| 9.2 6.9 8.6| 6.9|
| | | | | |
Kauppalehti Group | 2.0| 2.0 1.2 1.7| 2.4| 2.5 1.5 2.0| 2.3|
| | | | | |
Marketplaces | 1.7| 1.6 1.5 0.0| 0.9| -0.1 0.1 -0.3| 0.2|
| | | | | |
Other operations | 1.5| -1.1 -0.1 0.5| 1.9| -0.3 -0.3 1.0| 2.4|
-------------------------+-----+-----------------+-----+-----------------+-----+
OPERATING PROFIT | | | | | |
EXCLUDING NON-RECURRING | | | | | |
ITEMS | 12.0| 11.5 9.3 11.0| 13.4| 11.3 8.3 11.3| 11.7|
-------------------------+-----+-----------------+-----+-----------------+-----+
% of revenue | | | | | |
| | | | | |
Newspapers | 13.1| 15.8 12.4 15.0| 15.3| 16.5 13.3 15.4| 13.4|
| | | | | |
Kauppalehti Group | 16.0| 13.1 8.6 10.8| 18.2| 17.3 11.0 12.5| 15.7|
| | | | | |
Marketplaces | 18.5| 16.3 16.2 0.2| 10.9| -1.5 1.2 -4.5| 2.4|
| | | | | |
Other operations | 7.3| -5.5 -0.3 2.3| 9.7| -1.5 -1.4 5.2| 13.4|
-------------------------+-----+-----------------+-----+-----------------+-----+
% OF REVENUE | 16.0| 14.0 12.1 13.2| 17.8| 14.3 11.2 14.3| 16.0|
-------------------------+-----+-----------------+-----+-----------------+-----+
Non-recurring items | | | | | |
| | | | | |
Newspapers | 0.0| 0.0 -0.5 -0.2| 0.1| 0.0 -0.1 0.2| -0.4|
| | | | | |
Kauppalehti Group | 0.0| 0.0 0.0 0.0| 0.0| 0.0 0.0 0.4| 0.0|
| | | | | |
Marketplaces | 0.0| 0.0 0.2 -0.1| 0.3| -0.5 -0.1 -1.0| -0.1|
| | | | | |
Other operations | 0.4| -0.5 0.0 0.0| -0.2| 0.2 0.1 0.0| 0.0|
-------------------------+-----+-----------------+-----+-----------------+-----+
NON-RECURRING ITEMS | 0.4| -0.5 -0.3 -0.3| 0.2| -0.4 -0.1 -0.5| -0.5|
-------------------------+-----+-----------------+-----+-----------------+-----+
Operating profit | | | | | |
| | | | | |
Newspapers | 7.0| 9.2 6.2 8.5| 8.3| 9.2 6.9 8.8| 6.5|
| | | | | |
Kauppalehti Group | 2.0| 2.0 1.2 1.7| 2.4| 2.5 1.5 2.3| 2.3|
| | | | | |
Marketplaces | 1.7| 1.6 1.6 0.0| 1.1| -0.7 0.0 -1.3| 0.0|
| | | | | |
Other operations | 1.9| -1.7 -0.1 0.5| 1.7| -0.1 -0.1 1.0| 2.4|
-------------------------+-----+-----------------+-----+-----------------+-----+
OPERATING PROFIT | 12.4| 11.0 9.0 10.7| 13.6| 10.9 8.2 10.8| 11.1|
-------------------------+-----+-----------------+-----+-----------------+-----+
Finance income | 1.2| 1.0 0.5 1.0| 0.1| 0.2 0.2 0.1| 0.1|
| | | | | |
Finance expenses | 0.2| 0.8 0.6 0.0| 0.3| 0.2 0.2 0.3| 0.2|
| | | | | |
Share of profit of | | | | | |
associated companies | 2.3| 0.4 0.4 0.4| -0.1| 0.1 0.3 0.1| -0.1|
-------------------------+-----+-----------------+-----+-----------------+-----+
PROFIT BEFORE TAX | 15.6| 11.8 9.3 12.1| 13.4| 11.0 8.6 10.8| 10.9|
-------------------------+-----+-----------------+-----+-----------------+-----+
Income tax | -3.4| -3.0 -2.4 -2.9| -3.5| -3.1 -2.3 -3.1| -3.2|
-------------------------+-----+-----------------+-----+-----------------+-----+
PROFIT FOR THE PERIOD | 12.2| 8.8 6.9 9.2| 9.8| 7.8 6.3 7.7| 7.7|
-------------------------+-----+-----------------+-----+-----------------+-----+
MAIN ACCOUNTING PRINCIPLES (IFRS)
This interim report has been prepared according to IFRS standards (IAS 34). The
release applies the same accounting principles and calculation methods as the
annual accounts dated December 31, 2010, with the exception of the standards and
interpretations applied from January 2011 as listed below. The interim report
does not, however, contain all the information or notes to the accounts included
in the annual financial statements. This interim report should therefore be read
in conjunction with the company's financial statements for 2010. The accounting
principles of the financial years 2011 and 2010 are comparable. The company has
no discontinued operations to report in the 2010-2011 financial periods.
The key indicators are calculated using the same formulae as applied in the
previous annual financial statements. The quarterly percentages of Return on
Investment (ROI) and Return on Equity (ROE) have been annualised using the
formula ((1+quarterly return)4)-1). The figures in this financial statement
release are independently rounded.
The Group has applied the following standards and interpretations from January
1, 2011:
IAS 24 Related Party Disclosures (revised)
IAS 32 Financial Instruments: Presentation: Classification of Right Issues
IFRIC 14 IAS 19 The Limit of a Defined Benefit Assets, Minimum Funding
Requirements and their Interaction
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments
The impact of the above new standards and IFRIC interpretations on the Group has
been marginal.
The figures in this interim report are unaudited.
SEASONALITY
The Group recognises its circulation revenues as paid. Therefore, circulation
revenues accrue in the income statement fairly evenly during the four quarters
of the year. The bulk of circulation invoicing takes place at the beginning of
the year and therefore the cash flow from operating activities is strongest in
the first and second quarters. This also affects the company's balance sheet
position in different quarters.
GENERAL STATEMENT
This report contains certain statements that are estimates based on the
management's best knowledge at the time they were made. For this reason they
contain a certain amount of risk and uncertainty. The estimates may change in
the event of significant changes in the general economic conditions.
[HUG#1559029]
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