2011-02-16 07:59:00 CET
2011-02-16 08:00:07 CET
REGULATED INFORMATION
Alma Media - Financial Statement Release
Alma Media's Financial statement release 2010: Revenue and operating profit grew in 2010, dividend proposal 0,70 EUR per share
Alma Media Corporation Financial statement release February 16, 2011 at
9:00am (EET)
ALMA MEDIA'S FINANCIAL STATEMENTS RELEASE 2010:
Revenue and operating profit grew in 2010, dividend proposal 0,70 EUR per share
Financial performance 2010:
* Revenue MEUR 311.4 (307.8), up 1.1%.
* Operating profit MEUR 43.4 (40.4), up 7.4%, 13.9% (13.1%) of revenue.
* Operating profit excluding non-recurring items MEUR 43.9 (42.6), up 3.0%.
* Profit for the period MEUR 33.2 (28.3), up 17.3%.
* Earnings per share EUR 0.44 (0.38).
* Dividend paid for the financial year 2009 was EUR 0.40 (0.30) per share.
Financial performance October- December 2010:
* Revenue MEUR 83.0 (79.0), up 5.1%.
* Operating profit MEUR 10.7 (10.8), down 0.7%, 12.9% (13.7%) of revenue.
* Operating profit excluding non-recurring items MEUR 11.0 (11.3), down 2.7%.
* Profit for the period MEUR 9.2 (7.7), up 19.8%.
* Earnings per share EUR 0.12 (0.10).
Dividend proposal for the Annual General Meeting:
* Alma Media's Board of Directors will propose to the Annual General Meeting
that a dividend of EUR 0.70 (0.40) per share will be paid for the financial
year 2010.
Outlook for 2011:
Alma Media expects its full-year revenue and operating profit excluding non-
recurring items to increase from the 2010 level. Full-year revenue for 2010 was
MEUR 311.4, operating profit MEUR 43.4 and operating profit excluding non-
recurring items MEUR 43.9.
Kai Telanne, President and CEO:
The Finnish national economy recovered in 2010 into an upward trend. The GDP
dropped 8% in 2009, but grew in 2010 some 3%. Thanks to the growing GDP, the
advertising turned according to Finnish Advertising Council into a growth of
4.8% after a record-breaking weak year 2009.
The upward trend of the media advertising market that started at the beginning
of the third quarter continued during the rest of the year. According to Finnish
Advertising Council the money spent to the newspaper and freesheet advertising
grew by 3.1% in 2010. Online advertising grew by 14.7% during the year.
The advertising sales of Alma Media's Newspapers segment and Kauppalehti Group
grew during the financial year 2010. In the Marketplaces segment the positive
trend in the housing and recruitment advertising increased the advertising sales
clearly. The online advertising sales grew strongly particularly in
Kauppalehti.fi, Iltalehti.fi and the Marketplaces services Etuovi.com and
Monster.fi, and also in Iltalehti, where the increase in the online advertising
sales exceeded the decrease in the circulation revenue, and thus improved the
profitability remarkably. The share of the online business in Alma Media's
revenue grew to 16.2% (13.7%) during the fourth quarter of the year and to
15.7% (13.1%) during the whole year. Alma Media's share of the display and
classified online advertising was about one third of the total market in 2010.
We estimate that the market shares of our biggest online marketplaces grew
during 2010. Further, we assume that our market share of the newspaper
advertising remained at the fifth of the total market.
The circulation revenue of the Newspaper segment remained close to the level of
2009, although it was burdened by the decrease in circulation revenue of
Iltalehti. The circulation revenue of the regional and local newspapers grew
from year 2009 level. The circulation revenue of the Kauppalehti Group decreased
slightly compared to year 2009.
The company's fourth-quarter operative operating profit was slightly higher than
that of the comparison period. The reported operating profit excluding non-
recurring items dropped slightly compared to the last quarter in 2009 due to
some specific costs occurred in December. These costs were connected to business
development and delivery business.
The business development projects proceeded according to the plan. The
reformation of the operation mode and the format of the three regional
newspapers in Northern Finland have received positive feedback. The same applies
to the renewals of the operation mode and the contents implemented for Aamulehti
in October.
Alma Manu Oy, the printing and distribution unit, agreed in January 2011 about
the financing of the machinery in the new printing facility, that will be built
in Tampere in 2012. The maximum amount of the financing will be MEUR 50. The
investment project is proceeding according to the plan and in schedule.
During the fourth quarter the company acquired Intermedia Partners Oy (now Alma
Intermedia Oy) who is offering company directory services aimed at consumers.
Also Suunnittelutoimisto TTNK Oy, an agency specializing in digital marketing
communications was acquired. Both acquisitions support Alma Media's strategy to
increase the share of the digital services of its revenue.
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 October-December
and whole financial year of 2010 results in the "Salikabinetti" conference room
of the Savoy restaurant, 7th floor at the address Eteläesplanadi 14, Helsinki,
from 11:00 am to 12:00 noon (EET) on February 16, 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 from 11:00 am on the same day.
A webcast and conference call in English will start at 2:00 pm (EET) on February
16, 2011. You may participate in the conference call by calling +44 (0)
20 7806 1957 (confirmation code 5817045), 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 FINANCIAL STATEMENT RELEASE JANUARY 1 - DECEMBER 31, 2010
The descriptive part of this review focuses on the annual financial statements.
The figures are compared in accordance with the International Financial
Reporting Standards (IFRS) with those of the corresponding period in 2009,
unless otherwise stated. The full-year figures in the financial statement
release are audited. The figures in the tables are independently rounded.
KEY FIGURES 2010 2009 Change 2010 2009 Change 2008
MEUR Q4 Q4 *) % Q1-Q4 Q1-Q4 *) % Q1-Q4
--------------------------------------------------------------------------------
Revenue 83.0 79.0 5.1 311.4 307.8 1.1 341.1
Operating profit 10.7 10.8 -0.7 43.4 40.4 7.4 48.3
% of revenue 12.9 13.7 13.9 13.1 14.2
Operating profit
excluding non-recurring
items 11.0 11.3 -2.7 43.9 42.6 3.0 47.7
% of revenue 13.2 14.3 14.1 13.9 14.0
Profit before tax 12.1 10.8 11.8 45.0 39.7 13.2 52.4
Profit before taxes
excluding non-recurring
items 12.3 11.3 9.4 45.7 42.0 8.8 49.9
Profit for the period 9.2 7.7 19.8 33.2 28.3 17.3 39.0
Return on Equity/ROE
(Annual)** 38.1 38.5 -1.0 31.6 30.8 2.6 37.7
Return on Invets/ROI
(Annual)** 37.6 35.9 4.7 31.1 28.3 9.9 34.8
Net financial expenses -1.0 0.1 1525.8 -0.9 0.3 369.4 0.4
Net financial expenses, %
of revenue -1.2 0.1 -0.3 0.1 0.1
Share of profit of
associated companies 0.4 0.1 314.0 0.7 -0.3 315.3 4.5
Balance sheet total 184.5 154.4 19.5 166.9
Capital expenditure 2.8 3.0 -6.6 12.9 8.2 57.0 14.5
Capital expenditure, % of
revenue 3.4 3.8 4.1 2.7 4.2
Research and development
costs 4.0 0.9 344.4 2.7
Equity ratio 67.1 66.9 57.2
Gearing, % -28.2 -17.3 6.5
Interest-bearing net debt -32.4 -16.5 96.6 5.8
Interest-bearing
liabilities 4.0 4.6 -13.2 19.1
Non-interest-bearing
liabilities 65.7 54.9 19.7 59.3
Average no. of
personnel, calculated as
full-time employees,
excl. delivery staff 1,792 1,777 0.9 1,805 1,888 -4.4 1,981
Average no. of delivery
staff 887 894 -0.8 962 969 -0.7 968
Earnings per share, EUR
(basic) 0.12 0.10 18.7 0.44 0.38 16.0 0.51
Earnings per share, EUR
(diluted) 0.12 0.10 18.8 0.44 0.38 16.1 0.51
Cash flow from operating
activities/share, EUR 0.16 0.14 16.7 0.61 0.58 6.3 0.63
Shareholders' equity per
share, EUR 1.50 1.27 1.18
Dividend per share ***) 0.70 0.40 0.30
Effective dividend yield 8.5 5.3 6.1
P/E Ratio 18.9 19.8 9.6
Market capitalization 621.4 558.1 11.3 369.3
Average no. of shares
(1,000 shares)
- basic 75,053 74,613 74,894 74,613 74,613
- diluted 75,216 74,799 75,086 74,859 74,764
No. of shares at end of
period (1,000 shares) 75,053 74,613 75,053 74,613 74,613
*) 2009 restated
**) see Main Accounting
Principles of the
Financial Statement
Release
***) Proposal for 2010 by the Board of Directors
REVENUE AND RESULT OCTOBER - DECEMBER 2010
The Group's revenue from October to December grew by 5.1% (down 8.8%) and
totalled MEUR 83.0 (79.0). The share of the online business in the Group's
revenue grew to 16.2% (13.7%).
The Group's advertising sales grew by 8.3% to MEUR 41.1. Advertising sales for
printed media grew by 4.1%.
The operating profit for October-December was MEUR 10.7 (10.8). The operating
profit excluding non-recurring items decreased by 2.7% (up 19.2%) to MEUR 11.0
(11.3) . The main reason for the moderate decrease of the operating profit was
that some specific costs for the business development projects and distribution
operations occurred in December. The operating profit weakened to 12.9% (13.7%)
of revenue, and the operating profit excluding non-recurring items to 13.2%
(14.3%) of revenue.
REVENUE AND RESULT JANUARY-DECEMBER 2010
The Group's revenue for full year 2010 totalled MEUR 311.4 (307.8), up 1.1%
(down 9.8%). Online business accounted for 15.7% (13.1%) of revenue.
Advertising sales in 2010 grew by 5.5% and amounted to MEUR 148.2. The share of
the advertising sales of the total revenue was 47.6% (45.7%). Advertising for
the printed media grew by 1.0% from the previous year's level. The Group's
online advertising sales grew by 24.6% to MEUR 35.6.
Circulation revenue in 2010 was close to the previous year's level. Circulation
revenue for the regional and local papers increased slightly due to price
increases, while circulation volumes continued to decrease. Circulation revenue
of Iltalehti decreased by 3.7% to MEUR 39.8, while the single-copy sales by fell
by 5.2%. Circulation revenue for Kauppalehti decreased slightly from the
previous year's level.
The operating profit strengthened to MEUR 43.4 (40.4). Operating profit
excluding non-recurring items was MEUR 43.9 (42.6), up 3.0% (down 10.5%) from
the comparison period. The operating profit was 13.9% (13.1%), excluding non-
recurring items 14.1% (13.9%).
The operating profit for the 2010 financial year includes MEUR -0.5 (-2.2) in
net non-recurring items. The non-recurring items in 2010 were primarily related
to restructuring of business operations and corporate restructuring. The non-
recurring items in the comparison year were primarily made up of restructuring
costs, impairment on goodwill and sales of business operations.
Profit before taxes for 2010 was 45.0 million EUR (39.7). The profit before
taxes excluding non-recurring items was MEUR 45.7 (42.0). The profit before
taxes includes non-recurring items totalling MEUR -0.7 (-2.2). The non-recurring
items recorded in the finance expenses for 2010 consisted of exchange rate
losses on closed operations.
The development of consolidated revenue and operating profit was in line with
the management's forecasts earlier in the year. Revenue grew slightly from 2009
levels as a result of increased advertising sales. The operating profit for the
full financial year 2010, excluding non-recurring items increased on the
previous year. Revenue in 2009 totalled MEUR 307.8, operating profit was MEUR
40.4 and operating profit excluding non-recurring items MEUR 42.6.
CHANGES IN GROUP STRUCTURE 2010
On March 1, 2010, Alma Media Corporation acquired a 60-% shareholding in
Marknadspriser i Sverige AB, a Swedish company running the Marknadspriser.se
online service. The company is reported as part of the Marketplaces segment in
Alma Media's consolidated financial statements.
On March 16, 2010, Alma Media Corporation acquired a 24-% shareholding in the
Finnish company Kateetti Oy (now Alkali Oy) through a share transaction and a
directed share issue. The company is reported as an associate company under the
Marketplaces segment in Alma Media's consolidated financial statements.
The business operations of Tyrvään Sanomat Oy were transferred to Suomen
Paikallissanomat Oy, an Alma Media company on April 16, 2010. The acquisition
included two local papers, Tyrvään Sanomat and Paikallissanomat, as well as the
business operations of advertising agency Idea-Mainos. The entity is reported as
part of the Newspapers segment.
Alma Media's ownership in Kotikokki.net Oy rose from 40% to 65% on June
1, 2010. The company is reported as a subsidiary under the Newspapers segment in
the consolidated financial statements.
Alma Media Corporation and Arena Partners Oy started cooperation in the
nationwide marketplaces business. The business operations concerned, Etuovi.com,
Vuokraovi.com, Autotalli.com and Mikko.fi, were transferred into a new Group
subsidiary, Alma Media Partners Oy, created through a partial demerger of Alma
Media Interactive Oy. Arena Partners Oy purchased a 35-% shareholding of this
subsidiary. Simultaneously, Alma Media purchased a 35-% shareholding of Arena
Interactive Oy, a subsidiary of Arena Partners. The share transactions
pertaining to the arrangement were made on September 1, 2010. The deal increased
the Group's equity by MEUR 10.7. Alma Media Interactive Oy was merged to Alma
Media Corporation on December 31, 2010.
Alma Media Corporation acquired the entire stock of Intermedia Partners Oy (now
Alma Intermedia Oy) and MIG Group Oy operating in Pori, Finland. Through the
acquisition, Alma Media expanded its business to company directory services
aimed at consumers. The online company directory service increases the online
service portfolio of Alma Media's regional and local newspapers and supports
their growth into even more communal consumer services that offer a variety of
content packages. The operations are reported as a part of the Newspapers
segment.
On November 1, 2011 Alma Media acquired Suunnittelutoimisto TTNK Helsinki Oy
(Titanik Helsinki), an agency specialized in digital marketing communications.
The deal broadened the content production offering of the custom media house
Alma Media Lehdentekijät, a member of Kauppalehti Group offering customer
magazines. The company is reported as part of the Kauppalehti Group.
During the third quarter Alma Media closed down the business operations of
City24, acting in the housing advertising, in Serbia, Ukraine and Croatia. The
business operations of City24 continue in Estonia, Latvia, Lithuania and Poland.
OUTLOOK FOR 2011
Alma Media expects newspaper and online advertising to grow in 2011 compared
with the previous year. Alma Media expects the single-copy sales of afternoon
papers to decline further. A slight decrease is expected in the circulation
volumes of regional and local papers. Kauppalehti's circulation is expected to
remain stable or decline slightly. The material and delivery costs of the Group
are expected to increase from the level of the comparison year.
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 was MEUR 43.4 and operating profit excluding non-
recurring items MEUR 43.9.
MARKET CONDITIONS
According to forecasts, the Finnish national economy is estimated to have grown
2.5-3.5% in 2010. Estimates of GDP growth published at the end of 2010, in
particular, were clearly more positive than those published in the early part of
the year. The growth in the national economy is primarily led by an increase in
aggregate demand. According to forecasts, GDP growth will remain at the 2-3%
level in 2011.
According to reports published by the Finnish Advertising Council, the total
media advertising spend in Finland grew by 4.8% (-15.8%) in 2010. Advertising in
newspapers and free issue papers grew by 3.1% in 2010 while advertising in
online media increased by 14.7% compared to the previous year.
According to TNS Media Intelligence, total advertising volume grew by 10.6% in
the last quarter of the year. Advertising in newspapers and city papers
increased by 6.3% and advertising in online media by 32.9% compared to the
corresponding period in the previous year.
BUSINESS SEGMENTS
The business segments are reported according to the Group's internal
organisational structure in this interim report. The segment structure was
changed from the beginning of 2010 when Alma Media's printing and distribution
operations were combined in a new group unit. The new printing and distribution
unit is reported as part of the Other operations business segment.
After the change in the segment structure and composition, Alma Media has
restated the segments' items for the comparison period 2009 according to the
IFRS 8 Operating Segments standard. These changes are detailed in the appendix
to this financial statement release. The stock exchange release "Change in the
structure and composition of Alma Media's business segments" on April 27, 2010
presents the segments' revenue and operating profits, key figures, the segments'
assets, liabilities and investments as well as a summary of the effects of the
changes regarding the financial years 2008 and 2009 for the Newspapers,
Kauppalehti Group and Marketplaces segments according to both the old and new
segment compositions.
REVENUE AND OPERATING PROFIT/LOSS BY SEGMENT
REVENUE BY SEGMENT, 2010 2009 Change 2010 2009 Change
MEUR Q4 Q4 % Q1-Q4 Q1-Q4 %
-------------------------------------------------------------------------------
Newspapers
External 57.2 55.4 215.1 213.4
Inter-segments 0.9 0.5 4.1 2.1
Newspapers total 58.1 55.9 3.9 219.3 215.5 1.7
Kauppalehti Group
External 15.9 15.9 57.2 62.5
Inter-segments 0.2 -0.1 0.7 0.3
Kauppalehti Group total 16.1 15.8 1.8 57.9 62.8 -7.8
Marketplaces
External 8.5 6.5 32.3 27.0
Inter-segments -0.1 0.0 -0.3 0.0
Marketplace total 8.4 6.5 28.5 32.1 27.0 18.7
Other operations
External 1.4 1.1 6.7 4.8
Inter-segments 18.9 17.2 71.9 67.8
Other operations total 20.4 18.3 10.9 78.5 72.7 8.0
Elimination -19.9 -17.6 -76.4 -70.2
-------------------------------------------------------------------------------
Total 83.0 79.0 5.1 311.4 307.8 1.1
-------------------------------------------------------------------------------
OPERATING PROFIT/LOSS BY SEGMENT, 2010 2009 Change 2010 2009 Change
MEUR *) Q4 Q4 % Q1-Q4 Q1-Q4 %
-------------------------------------------------------------------------------
Newspapers 8.5 8.8 -3.0 32.9 29.7 10.5
Kauppalehti Group 1.7 2.3 -25.4 8.2 6.7 22.7
Marketplaces 0.0 -1.3 **) 96.7 0.4 -1.7 **) 121.8
Other operations 0.5 1.0 -51.4 1.9 5.7 -65.6
-------------------------------------------------------------------------------
Total 10.7 10.8 -0.7 43.4 40.4 7.4
-------------------------------------------------------------------------------
*) including non-recurring items
**) 2009 restated
NEWSPAPERS
NEWSPAPERS 2010 2009 Change 2010 2009 Change
Key figures, MEUR Q4 Q4 % Q1-Q4 Q1-Q4 %
--------------------------------------------------------------------------------
Revenue 58.1 55.9 3.9 219.3 215.5 1.7
Circulation revenue 27.8 27.2 2.3 110.3 109.9 0.4
Advertising revenue 29.0 27.4 5.6 104.9 101.3 3.6
Other revenue 1.3 1.3 0.2 4.1 4.4 -6.6
Operating profit 8.5 8.8 -3.0 32.9 29.7 10.5
Operating profit, % 14.7 15.8 15.0 13.8
Operating profit
excluding non-
recurring items 8.7 8.6 1.4 33.1 30.8 7.2
Operating profit
excluding non-
recurring items, % 15.0 15.4 15.1 14.3
Average no. of
personnel, calculated
as full-time employees
excl. delivery staff 961 1,002 -4 972 1,002 -3
Average no. of
delivery staff * 99 370 -73 99 370 -73
* Delivery operations were transferred on January 1 2010 to the printing and
delivery unit, which is reported in Other operations
2010 2009 2010 2009
Operational key
figures Q4 Q4 Q1-Q4 Q1-Q4
--------------------------------------------------------------------------------
Audited circulation *)
Iltalehti 107,052 112,778
Aamulehti 131,539 135,293
Online services, unique browsers, weekly
Iltalehti.fi 2,555,355 1,945,453 2,276,375 1,762,615
Telkku.com 636,464 603,000 616,325 580,989
Aamulehti.fi 346,903 254,726 299,467 207,978
*) Year 2010 figures are preliminary information
The Newspapers segment reports the publishing activities of 34 newspapers. The
largest titles are Aamulehti and Iltalehti.
October - December 2010
The Newspapers segment's revenue increased to MEUR 58.1 (55.9). Advertising
sales in the segment totalled MEUR 29.0 (27.4), up 5.6% (down 12.3%) on the
previous year. Advertising sales in print media increased 3.6% (decreased
14.7%). Online advertising sales continued to grow.
The segment's circulation revenue grew slightly in the last quarter of the year
compared to the corresponding period in the previous year as a result of the
price increases of regional and local papers.
The Newspapers segment's operating profit in October-December was MEUR 8.5
(8.8). The segment's operating profit excluding non-recurring items was MEUR
8.7 (8.6). Non-recurring items for the segment totaled MEUR -0.2 (0.2). The non-
recurring items during the period were made up of MEUR 0.2 in gains on sales
relating to corporate restructuring and -0.4 MEUR on business restructuring. The
non-recurring items in the comparison period included MEUR 0.4 in gains on sales
relating to corporate restructuring and MEUR -0.2 on business restructuring.
Alma Media Corporation acquired the entire stock of Intermedia Partners Oy (now
Alma Intermedia Oy) on October 1, 2010. Through the acquisition, Alma Media
expanded its business to company directory services aimed at consumers. The
online company directory service increases the online service portfolio of Alma
Media's regional and local newspapers and supports their growth into even more
communal consumer services that offer a variety of content packages. The name of
the company was changed into Alma Intermedia Oy in December.
Year 2010
The Newspapers segment's revenue in 2010 totalled MEUR 219.3 (215.5). The
segment's advertising revenue increased 3.6% (decreased 14.0%), totalling MEUR
104.9 (101.3). The segment's circulation revenue grew slightly to reach MEUR
110.3 (109.9). The Newspapers segment's operating profit was MEUR 32.9 (29.7)
and operating profit excluding non-recurring items was MEUR 33.1 (30.8).
Operating profit as a percentage of revenue grew to 15.0% (13.8%), or 15.1%
(14.3%) excluding non-recurring items.
The segment's non-recurring items totalled MEUR -0.2 (-1.1). The non-recurring
items in 2010 comprised MEUR 0.2 in gains on sales relating to corporate
restructuring and MEUR -0.4 on business restructuring. The non-recurring items
in the comparison period consisted of MEUR 0.4 in gains on sales relating to
corporate restructuring and MEUR -1.4 on business restructuring.
The visitor numbers for the online services of Alma Media's newspapers continued
to increase, exceeding the previous year's levels. Finland's most popular online
service Iltalehti.fi solidified its position with an average of well over two
million unique visitors per week. Aamulehti.fi remained Finland's largest online
service for a regional newspaper, reaching a record number of visitors at
372,000 unique visitors (browsers) near the end of the year.
Alma Media also developed printed newspapers, with new operating methods
implemented for Lapin Kansa, Pohjolan Sanomat and Kainuun Sanomat and a
redesigned format for the same three papers being introduced in January 2011. A
revision of content and operating methods was also carried out at Aamulehti in
autumn 2010.
KAUPPALEHTI GROUP
KAUPPALEHTI GROUP 2010 2009 Change 2010 2009 Change
Key figures, MEUR Q4 Q4 % Q1-Q4 Q1-Q4 %
--------------------------------------------------------------------------------
Revenue 16.1 15.8 1.8 57.9 62.8 -7.8
Revenue excluding sold
operations * 16.1 15.1 7.1 57.9 56.2 3.0
Circulation revenue 4.0 4.0 -0.4 15.0 15.4 -2.4
Advertising revenue 5.4 5.0 7.5 17.7 16.3 8.0
Content and service revenue 6.8 6.8 -1.1 25.2 31.0 -18.8
Operating profit 1.7 2.3 -25.4 8.2 6.7 22.7
Operating profit, % 10.8 14.8 14.2 10.7 33.1
Operating profit excluding
non-recurring items 1.7 2.0 -11.7 8.2 6.7 22.7
Operating margin excluding
non-recurring items, % 10.8 12.5 14.2 10.7 33.0
Average no. of personnel,
calculated as full-time
employees 439 453 -3 437 477 -8
* Kauppalehti 121 Oy sold at November
2009
2010 2009 2010 2009
Operational key figures Q4 Q4 Q1-Q4 Q1-Q4
--------------------------------------------------------------------------------
Audited circulation *)
Kauppalehti 78,731
Online services, unique browsers, weekly
Kauppalehti.fi 688,144 589,293 615,354 544,533
*) Figures of 2010 not available yet
The Kauppalehti Group specialises in the production of business and financial
information as well as in provision of marketing solutions. Its best known title
is Finland's leading business paper, Kauppalehti. The group also includes the
custom media house Lehdentekijät and the news agency and media monitoring unit
BNS Group that operates in the Baltic countries.
October - December 2010
The revenue of the Kauppalehti Group was MEUR 16.1 (15.8) in the fourth quarter.
The comparison period's revenue include those of the sold Kauppalehti 121 Oy in
the amount of MEUR 0.8. Without the effect of Kauppalehti 121, the review
period's net sales increased by 7.1%. Online business accounted for 22.8%
(19.6%) of the segment's revenue.
The segment's advertising sales grew 7.5% (down 14.6%) to MEUR 5.4 (5.0). Online
advertising sales increased by 13.7% (up 0.4%) from the comparison period.
The segment's circulation revenue remained at the previous year's level at MEUR
4.0 (4.0). The content and service revenue of the segment without the effect of
Kauppalehti 121 increased 11.8% to MEUR 6.8 (6.1).
The operating profit of the Kauppalehti Group in October - December was MEUR
1.7 (2.3), excluding non-recurring items MEUR 1.7 (2.0). The operating margin
was 10.8% (14.8%), excluding non-recurring items 10.8% (12.5%). There were no
non-recurring items recognized during October-December. The non-recurring items
in the comparison period were MEUR 0.4, consisting of gains on sales of business
operations.
Alma Media acquired Suunnittelutoimisto TTNK Helsinki Oy (Titanik Helsinki), an
agency specialized in digital marketing communications. The deal broadened the
content production offering of the custom media house Alma Media Lehdentekijät,
a member of Kauppalehti Group.
Year 2010
The revenue of the Kauppalehti Group was MEUR 57.9 (62.8). The comparison
period's revenue includes the revenue of Kauppalehti 121 Oy, sold in November
2009, totalling MEUR 6.6. Without the effect of Kauppalehti 121, the segment's
revenue increased by 3.0% to MEUR 57.9 (56.2). The segment's advertising revenue
grew to MEUR 17.7 (16.3). Circulation revenue was MEUR 15.0 (15.4) and content
and service revenue MEUR 25.2 (24.4) (excluding Kauppalehti 121).
The operating profit for the segment was MEUR 8.2 (6.7), excluding non-recurring
items MEUR 8.2 (6.7). The Kauppalehti Group's operating margin was 14.2%
(10.7%), excluding non-recurring items 14.2% (10.7%). There were no non-
recurring items recognized during the financial year. The non-recurring items in
the comparison period were MEUR 0.4, gains on sales of business operations, and
MEUR -0.4 as restructuring costs.
The number of visitors in Kauppalehti.fi kept on growing, which further
strengthened the position of Kauppalehti product family as the leading business
information provider in Finland. The online service was renewed in January 2011.
MARKETPLACES
MARKETPLACES 2010 2009 Change 2010 2009 Change
Key figures, MEUR Q4 Q4 % Q1-Q4 Q1-Q4 %
--------------------------------------------------------------------------------
Revenue 8.4 6.5 28.5 32.1 27.0 18.7
Operations in Finland 7.3 5.4 33.6 27.5 22.4 22.9
Operations outside Finland 1.2 1.1 10.0 4.9 4.7 4.5
Operating profit 0.0 -1.3 *) 96.7 0.4 -1.7 *) 121.8
Operating margin, % -0.5 -20.2 *) 1.2 -6.3 *) 118.4
Operating profit excluding
non-recurring items 0.0 -0.3 107.0 0.8 -0.5 253.8
Operating margin excluding
non-recurring items, % 0.2 -4.5 2.6 -2.0 229.3
Average no. of personnel,
calculated as full-time
employees 178 178 0 180 200 -10
*) 2009 restated
2010 2009 2010 2009
Operational key figures Q4 Q4 Q1-Q4 Q1-Q4
--------------------------------------------------------------------------------
Online services, unique browsers, weekly
Etuovi.com 407,785 355,748 413,044 354,826
Autotalli.com 81,468 93,525 91,182 96,872
Monster.fi 85,663 76,109 85,911 74,473
Mikko.fi 44,133 70,798 59,349 76,854
Mascus.com (Finland) 198,014 168,960 190,320 135,272
City24 146,522 197,489 190,842 232,640
Bovision 68,669 106,637 96,706 110,266
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.
October - December 2010
The fourth-quarter revenue of the Marketplaces segment amounted to MEUR 8.4
(6.5), up 28.5 % (down 11.5%). The advertising revenue of the segment grew more
quickly during the review period than earlier in the year, 29.6%, being MEUR
7.4. This positive development was mainly due to growth in recruitment and
housing advertising. Revenue from housing advertising grew both in online and
printed media.
The operating profit of the Marketplaces segment increased to MEUR 0.0 (-1.3) in
the fourth quarter. The operating profit excluding non-recurring items was MEUR
0.0 (-0.3). No non-recurring items occurred during October-December. The non-
recurring items MEUR -1.0 in 2009 were impairment losses of goodwill.
The Helsinki Court of Appeal confirmed in its ruling given in December that Alma
Media has the right to use its established and well-known trademark ETUOVI.COM
as the brand for its housing and real-estate online services. However, the
ruling by the court confirmed that ETUOVI.COM could not be used as the trademark
of a newspaper. Alma Media has changed the name of Etuovi.com newspaper into
Asuntomedia, but will apply the Supreme Court for a leave to appeal.
Year 2010
In January-December, the Marketplaces segment's revenue grew by 18.7% to MEUR
32.1 (27.0). The operating profit grew to MEUR 0.4 (down 1.7), excluding non-
recurring items to MEUR 0.8 (down 0.5). The non-recurring items MEUR -0.4 in
2010 occurred at the closing down from the business operations. The non-
recurring items MEUR 1.2 in 2009 were due to the impairment losses of assets and
goodwill.
OTHER OPERATIONS
OTHER OPERATIONS 2010 2009 Change 2010 2009 Change
Key figures, MEUR Q4 Q4 % Q1-Q4 Q1-Q4 %
--------------------------------------------------------------------------------
Revenue 20.4 18.3 10.9 78.5 72.7 8.0
External 1.4 1.1 24.7 6.7 4.8 37.5
Inter-segments 18.9 17.2 10.0 71.9 67.8 5.9
Operating profit 0.5 1.0 -51.4 1.9 5.7 -65.6
Operating profit, % 2.3 5.2 2.5 7.8 -68.2
Operating profit excluding non-
recurring items 0.5 1.0 -52.0 1.8 5.7 -67.9
Operating profit excluding non-
recurring items, % 2.3 5.2 2.3 7.8 -70.3
Average no. of personnel, calculated
as full-time employees 214 201 7 217 210 3
Average no. of delivery staff 788 546 44 863 599 44
2010 2009 2010 2009
Operational key figures Q4 Q4 Q1-Q4 Q1-Q4
--------------------------------------------------------------------------------
Printing volume (thousand issues) 237,532 219,965
Paper usage (tons) 32,000 30,000
The Other operations segment reports the operations of the Group's parent
company as well as those of the printing and distribution unit. The financial
characteristics of both are similar as they primarily provide services for the
other business segments.
In October 2010, Alma Media Corporation concluded an agreement to lease property
to Alma Manu Oy. The construction of the building in question is scheduled for
completion in 2012. In conjunction with that transaction, Alma Media Corporation
sold the real estate company Kiinteistö Oy Uusi Paino to OP-Henkivakuutus Oy.
The agreement will be recognized in the financial statements as a financial
leasing agreement under IAS 17 from the date on which the printing facility
becomes operational. The estimated present value of the agreement's minimum
rental revenue at the time the facility becomes operational is MEUR 16.8. The
printing facility is expected to become operational in late 2012.
ASSOCIATED COMPANIES
Share of profit of associated companies 2010 2009 2010 2009
MEUR Q4 Q4 Q1-Q4 Q1-Q4
-------------------------------------------------------------
Newspapers 0.0 0.0 0.1 0.1
Kauppalehti Group
Talentum Oyj 0.2 -0.3 0.0 -1.4
Marketplaces -0.0 -0.1
Other operations
Other associated companies 0.2 0.4 0.6 0.9
-------------------------------------------------------------
Total 0.4 0.1 0.7 -0.3
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 financial statements release.
In March 2010, Alma Media acquired a 24-% shareholding in the Finnish company
Kateetti Oy (now Alkali Oy) through a share transaction and a directed share
issue. The company is reported as an associate company under the Marketplaces
segment in Alma Media's consolidated financial statements.
In September 2010, Alma Media Corporation acquired a 35-% shareholding in Arena
Interactive Oy, a subsidiary of Arena Partners Oy. The deal was part of the
cooperation arrangement between Alma Media and Arena Partners in the nationwide
marketplaces business.
BALANCE SHEET AND FINANCIAL POSITION
The consolidated balance sheet at the end of December 2010 stood at MEUR 184.5
(154.4). Alma Media's equity ratio at the end of December was 67.1% (66.9%) and
equity per share was EUR 1.50 (1.27).
The Group's interest-bearing net debt at the end of December was MEUR -32.4 (-
16.5). The fair value of the contingent considerations, i.e. financial assets
recognized at fair value through profit or loss, due to the arrangements and
acquisitions in 2010, as at December 31, 2010 was MEUR 9.2 and that of the other
debt MEUR 2.8.
The consolidated cash flow from operations in January-December was MEUR 46.1
(43.1). Cash flow before financing was MEUR 43.7 (43.9). The cash flow from
investing activities was affected primarily by the mergers and acquisitions
implemented in the current year.
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 100.0 on December 31, 2010. In addition,
the Group has a credit limit in the amount of MEUR 50.0 for the period August
6, 2009-August 6, 2011, which on December 30, 2010 was totally unused.
RESEARCH AND DEVELOPMENT COSTS
Research and development costs in 2010 amounted to MEUR 4.0 (0.9). Of this
total, MEUR 2.6 (0.5) was expensed and MEUR 1.4 (0.5) capitalized. The most
significant projects pertained to the development of online business.
CAPITAL EXPENDITURE
Alma Media Group's capital expenditure in 2010 totalled MEUR 12.9 (8.2). They
comprised mainly of share purchase and business acquisitions and online
development projects. Other expenditure was related with normal operational and
replacement investments.
Alma Media Corporation announced on December 17, 2009 that it had initiated
preparations for an investment aiming at the modernisation of its printing
facilities in Tampere. The Board of Directors decided to proceed with the
initiative to the execution phase on March 11, 2010. Most of the investment will
be carried out in 2011 and 2012. The new printing facility is estimated to be
operational in late 2012.
PERSONNEL
During 2010, the average number of Alma Media employees, calculated as full-time
employees (excluding deliverers), was 1,805 (1,888). The average number of
delivery staff totaled 962 (969).
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
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,
includes 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.
ADMINISTRATION
Alma Media Corporation's ordinary Annual General Meeting (AGM) held on March
11, 2010 elected Lauri Helve, Kai Seikku, Erkki Solja, Kari Stadigh, Harri
Suutari, Catharina Stackelberg-Hammarén and Seppo Paatelainen members of the
company's Board of Directors. In its constitutive meeting held after the AGM,
the Board of Directors elected Kari Stadigh its Chairman and Seppo Paatelainen
its Deputy Chairman.
The Board also elected the members of its committees. Kai Seikku, Erkki Solja,
Catharina Stackelberg-Hammarén and Harri Suutari as chairman were elected
members of the Audit Committee. Seppo Paatelainen and Lauri Helve, as well as
Kari Stadigh as Chairman, were elected members of the Nomination and
Compensation Committee.
The Board of Directors of Alma Media Corporation has evaluated that Kari
Stadigh, the CEO of Sampo plc, acting as Chairman of Alma's Board of Directors,
and Seppo Paatelainen, the Chairman of the Board of Directors of Ilkka-Yhtymä
Oyj, acting as Deputy Chairman of Alma's Board of Directors, are independent of
the company but not independent of a significant shareholder. Other persons
elected to the Board of Directors are evaluated to be independent of the company
and its major 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.
Oy Herttaässä Ab, a company holding more than 10% of the shares in Alma Media,
proposed to the AGM that a special audit should be conducted regarding the
operations of the Nomination and Compensation Committee of the Board of
Directors of Alma Media Corporation for the last five years. The AGM considered
the proposal, and as the shareholding of Oy Herttaässä Ab exceeds 10%, the
proposal was recorded in the meeting minutes. On April 15, 2010, Alma Media
received notification that Oy Herttaässä Ab has submitted an application for the
special audit to the Regional State Administrative Agency of Southern Finland.
Alma Media has submitted its answer to the Regional State Administrative Agency
of Southern Finland.
On August 19, 2010, Alma Media Corporation held an Extraordinary General Meeting
(EGM) at the request of Oy Herttaässä Ab, a shareholder of Alma Media. The
meeting decided not to change the composition of the Board of Directors. Mr Kai
Telanne, President and CEO of Alma Media, presented to the EGM a clarification
regarding the investment in the new printing facility at the request of Oy
Herttaässä Ab. Since the investment belongs under the general jurisdiction of
the Board of Directors, and as the Board of Directors had not submitted the
matter for approval by the EGM, the EGM made no decisions on the matter.
The district prosecutor of Helsinki decided on July 1, 2010 to charge Mr Kai
Telanne, President and CEO of Alma Media, on suspicion of discrimination at work
in connection with the termination of a director contract.
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 at www.almamedia.fi/corporate_governance.
THE ALMA MEDIA SHARE
In January - December, altogether 14,839,425 Alma Media shares were traded at
NASDAQ OMX Helsinki Stock Exchange, representing 19.8% of the total number of
shares. The closing price of the Alma Media share at the end of the last trading
day of the financial year, December 30, 2010, was EUR 8.28. The lowest quotation
during the financial year was EUR 6.00 and the highest EUR 8.46. Alma Media
Corporation's market capitalization at the end of the review period was MEUR
621.4.
The company paid a dividend of 0.40 euro per share, a total of MEUR 29.8 (22.4)
in dividends to its shareholders in March 2010.
The Annual General Meeting on March 11, 2010 decided to authorise the Board of
Directors to repurchase a maximum of 3,730,600 of the company's shares,
representing approximately 5% of all shares. The authorisation is valid until
the next ordinary general meeting, however no later than June 30, 2011. No
shares were repurchased by the end of the reported period.
OPTION RIGHTS
Option programme 2006
The Annual General Meeting held on March 8, 2006 decided on a stock option
programme under which a maximum of 1,920,000 options may be granted and these
may be exercised to subscribe to a maximum of 1,920,000 Alma Media Corporation's
shares with a book counter-value of EUR 0.60 per share. The programme is an
incentive and commitment system for the company's management. Of the total
number of options, 640,000 were marked 2006A (ALN1VEW106), 640,000 were marked
2006B (ALN1VEW206) and 640,000 were marked 2006C (ALN1VEW306).
Share subscription periods and subscription prices:
2006A April 1, 2008-April 30, 2010, trade-weighted average share price Apr 1-May
31, 2006
2006B April 1, 2009-April 30, 2011, trade-weighted average share price Apr 1-May
31, 2007 and
2006C April 1, 2010-April 30, 2012, trade-weighted average share price Apr 1-May
31, 2008.
As authorized by the Annual General Meeting, the Board of Directors has granted
515,000 of the 2006A options. Altogether 75,000 of the 2006A options have been
returned to the company owing to the termination of employment contracts. In
2007 and 2008, Alma Media's Board of Directors decided to annul the
200,000 2006A option rights in the company's possession. By June 30, 2010, all
of the 440,000 options had been either sold (242,263) or used for share
subscription (197.737). The subscription price of the A options was EUR 4.88.
In 2007, the Board of Directors decided to issue a total of 515,000 options
under the 2006B scheme to Group management. Altogether 50,000 of the 2006B
options have been returned to the company owing to the termination of employment
contracts. After the returned options, corporate management possesses a total of
465,000 2006B options. The share subscription price under the 2006B option, EUR
9.85 per share was determined by the trade-weighted average share price in
public trading between April 1 and May 31, 2007. The subscription price of the
2006B options was reduced by the amount of dividend payment in March 2008 (EUR
0.90 per share), by dividend payment in March 2009 (EUR 0.30 per share) to EUR
8.65 per share and by dividend payment in March 2010 (EUR 0.40 per share) to EUR
8.25 per share. All of the 175,000 2006B option rights in the company's
possession have been annulled. The options in the 2006B programme are traded in
NASDAQ OMX Helsinki Stock Exchange since April 1, 2009. No shares have been
subscribed to by September 30, 2010.
In 2008, the Board of Directors decided to issue 520,000 options under the
2006C programme to Group management. Altogether 50,000 of the 2006C options have
been returned to the company owing to the termination of employment contracts.
After the returned options, corporate management possesses a total of
470,000 2006C options. The share subscription price under the 2006C option, EUR
9.06 per share, was determined by the trade-weighted average share price in
public trading between April 1 and May 31, 2008. The subscription price of the
2006C options was reduced by the amount of dividend payment in March 2009 (EUR
0.30 per share) to EUR 8.76 per share and by dividend payment in March 2010 (EUR
0.40 per share) to EUR 8.36 per share. All of the 170,000 2006C option rights in
the company's possession have been annulled. The options in the 2006C programme
are traded in NASDAQ OMX Helsinki Stock Exchange since April 1, 2010.
If all the subscription rights are exercised, the programme will dilute the
holdings of the earlier shareholders by 1.23%.
Option programme 2009
The Annual General Meeting of Alma Media on March 11, 2009 decided, in
accordance with the proposal by the Board of Directors, to continue the
incentive and commitment system for Alma Media management through an option
programme according to earlier principles and decided to grant stock options to
the key personnel of Alma Media Corporation and its subsidiaries in the period
2009-2011. Altogether 2,130,000 stock options may be granted, and these may be
exercised to subscribe to a maximum of 2,130,000 Alma Media shares, either new
or in possession of Alma Media. Of the total number of options, 710,000 were
marked 2009A (ALN1VEW309), 710,000 were marked 2009B (ALN1VEW209) and 710,000
were marked 2009C (ALNVEW109).
Share subscription periods and subscription prices:
2009A April 1, 2012-March 31, 2014, trade-weighted average share price Apr
1-30, 2009
2009B April 1, 2013-March 31, 2015, trade-weighted average share price Apr
1-30, 2010 and
2009C April 1, 2014-March 31, 2016, trade-weighted average share price Apr
1-30, 2011.
The Board of Directors of Alma Media Corporation decided in May 2009 to grant
640,000 option rights to corporate management under the 2009A programme. 30,000
option rights have been returned to the company due to the termination of the
employment contracts. The company is in possession of 100,000 2009A options. The
subscription price of a 2009A option, EUR 5.21 per share, was determined by the
trade-weighted average share price in public trading between April 1 and April
30, 2009. The subscription price of the 2009A options was reduced by the amount
of dividend payment in March 2010 (EUR 0.40 per share) to EUR 4.81 per share.
The Board of Directors of Alma Media Corporation decided in April 2010 to grant
610,000 option rights to corporate management under the 2009B programme. 15,000
of the granted option rights were returned to the company. In June 2010 the
Board of Directs of Alma Media Corporation decided to grant 15,000 option rights
to corporate management under the 2009B programme. The company is in possession
of 100,000 2009B options. The subscription price of a 2009B option, EUR 7.33 per
share, was determined by the trade-weighted average share price in public
trading between April 1 and April 30, 2010.
If all the subscription rights are exercised, the programmes 2006 and 2009 will
dilute the holdings of the earlier shareholders at least by 2.73%.
The Board of Directors has no other current authorisations to raise convertible
loans and/or to raise the share capital through a new issue.
MARKET LIQUIDITY GUARANTEE
There is no market liquidity guarantee in effect for the Alma Media share.
FLAGGING NOTICES
In 2010, Alma Media received the following notices pursuant to Chapter 2,
Section 9 of the Securities Markets Act:
According to a notification by Ilkka-Yhtymä Oyj on 4 November 2010, Oy
Herttaässä Ab sold 7,250,000 Alma Media shares to Ilkka-Yhtymä Oyj on 4 November
2010. After the transaction, Ilkka-Yhtymä Oyj's holding in Alma Media
Corporation is 22,489,186 shares, corresponding to 29.96% and exceeding the
flagging limit of 25%.
According to a notification by Oy Herttaässä Ab on 5 November 2010, on 4
November 2010 the company sold 7,250,000 Alma Media shares to Ilkka-Yhtymä Oyj.
As a result of the deal, Oy Herttaässä Ab's holding in Alma Media falls below
the flagging limit of 5%. On 31 October 2010, Oy Herttaässä Ab held a total of
9,535,901 shares in the company, corresponding to 12.71%.
EVENTS AFTER THE REVIEW PERIOD
Alma Media's printing and distribution company Alma Manu Oy concluded in January
2011 an agreement on the financing of equipment for the printing facility
scheduled for completion in Tampere in 2012. The agreement stipulates maximum
financing of MEUR 50. The agreement will be recognized in the consolidated
financial statements as a financial leasing agreement under IAS 17 from the date
on which the printing equipment becomes operational. The new printing facility
is expected to become operational in late 2012.
On 1 February 2011, the Supreme Court decided to refuse Pohjois-Suomen Media Oy,
a subsidiary of Alma Media, the right to appeal the decision made by Helsinki
Court of Appeal on 18 March 2010 regarding the matter of the termination of a
Director's Contract. As a result, the decision handed down by the Helsinki Court
of Appeal remains unchanged.
Satakunnan Kirjateollisuus Oy, the publisher of Satakunnan Kansa, and Porin
Sanomat Oy, are initiating co-determination negotiations pertaining to all
employees. According to the preliminary view of the companies, they may reduce
personnel by a maximum of 20 man-years. The objective of the restructuring and
rationalisation of operations is to improve the competitiveness of Satakunnan
Kansa and Porin Sanomat as the media markets undergo major shifts, thereby
securing their viability in the future.
Board members Lauri Helve and Kari Stadigh have notified that they will not be
available for election to the Board of Directors of Alma Media. The Nomination
and Compensation Committee proposes to the Annual General Meeting that the
current Board members Seppo Paatelainen, Kai Seikku, Erkki Solja, Catharina
Stackelberg-Hammarén and Harri Suutari be re-elected to the Board of Directors
for the term ending at the close of the following ordinary Annual General
Meeting. In addition, the Committee proposes that Mr Timo Aukia, Managing
Director, Timo Aukia Oy, and Mr Petri Niemisvirta, Managing Director, Mandatum
Life Insurance Company Ltd, be elected new members of the Board for the said
term. The aforementioned candidates have given their consent to the election.
DIVIDEND PROPOSAL
Alma Media's Board of Directors will propose to the Annual General Meeting that
a dividend of EUR 0.70 (0.40) per share be paid for the 2010 financial year, in
total EUR 52,536,766 (29,845,009). On December 31, 2010, the Group's parent
company had distributable funds totalling EUR 56,858,658 (53,724,933), of which
profit for the period EUR 32,978,734 (26,001,181). Dividends are paid to
shareholders who are entered in Alma Media Corporation's shareholder register
maintained by Euroclear Finland Oy no later than the record date, March
22, 2011. The payment date is March 29, 2011.
The report by Alma Media's Board of Directors, the financial statements and the
audit report will be available on the company's website no later than February
24, 2011.
SUMMARY OF FINANCIAL STATEMENTS AND NOTES
2010 2009 Change 2010 2009 Change
COMPREHENSIVE INCOME STATEMENT, Q4 Q4 % Q1-Q4 Q1-Q4 %
MEUR
--------------------------------------------------------------------------------
REVENUE 83.0 79.0 5.1 311.4 307.8 1.1
Other operating income 0.1 0.7 -86.4 0.4 0.9 -54.6
Materials and services -22.8 -23.1 1.5 -89.4 -93.1 4.0
Employee benefits expense -32.5 -29.1 -11.9 -117.2 -112.3 -4.3
Depreciation, amortization and
impairment -2.4 -3.3 *) 28.5 -9.5 -9.9 *) 4.7
Other operating expenses -14.7 -13.4 -9.9 -52.4 -53.0 1.1
--------------------------------------------------------------------------------
OPERATING PROFIT 10.7 10.8 -0.7 43.4 40.4 7.4
Finance income 1.0 0.1 988.6 1.5 0.6 157.0
Finance expenses -0.1 -0.3 19.8 -0.6 -1.0 24.3
Share of profit of associated
companies 0.4 0.1 314.0 0.7 -0.3 315.3
--------------------------------------------------------------------------------
PROFIT BEFORE TAX 12.1 10.8 11.8 45.0 39.7 13.2
--------------------------------------------------------------------------------
Income tax -2.9 -3.1 8.0 -11.8 -11.4 -3.2
--------------------------------------------------------------------------------
PROFIT FOR THE PERIOD 9.2 7.7 19.8 33.2 28.3 17.3
--------------------------------------------------------------------------------
OTHER COMPREHENSIVE INCOME
Change in translation differences 0.2 0.2 -3.8 0.6 0.5 27.2
Share of other comprehensive
income of associated companies 0.3 0.9 -0.4 351.7
Income tax relating to components
of other comprehensive income
--------------------------------------------------------------------------------
Other comprehensive income for the
period, net of tax 0.5 0.2 125.3 1.5 0.2
--------------------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR THE
PERIOD 9.7 7.9 22.6 34.7 28.5 22.0
--------------------------------------------------------------------------------
Profit for the period attributable
to
Owners of the parent 9.2 7.7 32.8 28.1
Non-controlling interest 0.1 0.0 0.3 0.1
Total comprehensive income for the period
attributable to
Owners of the parent 9.6 7.8 34.4 28.3
Non-controlling interest 0.1 0.0 0.3 0.1
Earning per share calculated from the profit
for the period
attributable to the parent company
shareholders
Earnings per share (basic), EUR 0.12 0.10 0.44 0.38
Earnings per share (diluted), EUR 0.12 0.10 0.44 0.38
*) 2009 restated
BALANCE SHEET, MEUR 31 Dec 2010 31 Dec 2009
------------------------------------------------------------------------------
ASSETS
NON-CURRENT ASSETS
Goodwill 30.4 27.2 *)
Other intangible assets 10.5 10.4
Tangible assets 27.8 32.0
Investments in associated companies 33.6 30.5
Other non-current financial assets 11.8 4.5
Deferred tax assets 0.2 0.7
CURRENT ASSETS
Inventories 1.0 1.5
Current tax assets 3.5 0.0
Accounts receivable and other receivables 27.1 25.3
Non-current financial assets recognized at fair value
through profit or loss 2.3 0.0
Cash and cash equivalents 36.3 21.1
TOTAL ASSETS 184.5 154.4
------------------------------------------------------------------------------
BALANCE SHEET, MEUR 31 Dec 2010 31 Dec 2009
-------------------------------------------------------------------------------
EQUITY AND LIABILITIES
Share capital 45.0 44.8
Share premium reserve 4.7 2.8
Foreign currency translation reserve 0.4 -0.3
Retained earnings 62.7 47.4
-------------------------------------------------------------------------------
Equity attributable to owners of the parent 112.8 94.7
Non-controlling interest 2.0 0.2
-------------------------------------------------------------------------------
TOTAL EQUITY 114.8 94.9
-------------------------------------------------------------------------------
LIABILITIES
NON-CURRENT LIABILITIES
Non-current interest-bearing liabilities 2.4 2.8
Deferred tax liabilities 2.4 2.5
Pension obligations 2.8 3.1
Provisions 0.1 0.1
Other financial liabilities 2.5 0.3
Other non-current liabilities 0.4 0.0
CURRENT LIABILITIES
Current interest-bearing liabilities 1.6 1.8
Advances received 13.4 12.6
Income tax liability 3.6 1.6
Provisions 0.6 1.0
Trade and other payables 39.9 33.7
-------------------------------------------------------------------------------
TOTAL LIABILITIES 69.7 59.5
-------------------------------------------------------------------------------
TOTAL EQUITY AND LIABILITIES 184.5 154.4
-------------------------------------------------------------------------------
*) 2009 restated
STATEMENT OF CHANGE IN EQUITY
Attributable to equity holders of the Parent
Company
CONSOLIDATED STATEMENT OF
CHANGE IN EQUITY Jan 1 -
Dec 31 2010
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 32.8 32.8 0.3 33.1
Other comprehensive income 0.6 0.9 1.5 1.5
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 0.6 0.6 0.6
Excercised share options 0.3 1.9 2.1 2.1
Business combinations 10.7 10.7 1.7 12.4
--------------------------------------------------------------------------------
Equity Dec 31 2010 45.0 4.7 0.4 62.7 112.8 2.0 114.8
--------------------------------------------------------------------------------
|
Attributable to equity holders of the Parent |
Company |
|
STATEMENT OF CHANGE IN
EQUITY Jan 1 - Dec 31 2009
MEUR A B C D E F G
--------------------------------------------------------------------------------
Equity Jan 1 2009 44.8 2.8 -0.8 41.1 87.9 0.6 88.5
--------------------------------------------------------------------------------
Profit for the period 28.1 28.1 0.1 28.3
Other comprehensive income 0.5 -0.4 0.2 0.2
Transactions with equity
holders of the parent and
non-controlling interest
Dividends paid by parent -22.4 -22.4 -22.4
Dividends paid by
subsidiaries -0.6 -0.6
Share-based payments 0.7 0.7 0.7
Share of items recognized
directly in associated
company's equity 0.2 0.2 0.2
--------------------------------------------------------------------------------
Equity Dec 31 2009 44.8 2.8 -0.3 47.4 94.7 0.2 94.9
--------------------------------------------------------------------------------
Column headings on 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
*) 2009 restated
CASH FLOW STATEMENT
2010 2009 2010 2009
CASH FLOW STATEMENT, MEUR Q4 Q4 Q1-Q4 Q1-Q4
--------------------------------------------------------------------------------
Operating activities
Profit for the period 9.2 7.7 33.2 28.3
Adjustments *) 5.3 5.5 20.3 20.5
Change in working capital 1.2 -1.8 5.3 -0.8
Dividends received 0.0 0.3 1.0 1.8
Interest received 0.0 0.1 0.3 0.4
Interest paid and other finance expenses -0.2 -0.2 -0.7 -1.0
Income taxes paid -3.2 -1.1 -13.2 -6.2
--------------------------------------------------------------------------------
Net cash flows from operating activities 12.3 10.5 46.1 43.1
Investing activities
Acquisitions of tangible and intangible assets -1.0 -1.2 -3.3 -4.2
Proceeds from sale of other investments 0.0 0.4 0.0 2.0
Change in loan receivables 0.0 0.0 0.1 0.0
Acquisition of subsidiaries -0.7 -0.8 -2.3 -0.8
Acquisition of associated companies 0.0 -1.4 -0.8 -2.5
Proceeds from sale of subsidiaries 0.0 6.2 3.9 6.2
Net cash flows from / (used in) investing activities -1.6 3.3 -2.4 0.7
Cash flow before financing activities 10.7 13.8 43.7 43.9
Financing activities
Proceeds from exercise of share options 0.0 0.0 2.1 0.0
Repayment of non-current loans 0.0 0.0 0.0 0.0
Current loans taken 0.0 0.0 0.0 17.8
Repayment of current loans -0.4 -7.4 -1.6 -32.7
Change in interest-bearing receivables 0.2 -0.4 0.8 1.7
Dividends paid 0.0 0.0 -30.0 -23.0
--------------------------------------------------------------------------------
Net cash flows from / (used in) financing activities -0.2 -7.9 -28.6 -36.1
Change in cash and cash equivalent funds (increase + /
decrease -) 10.6 5.9 15.1 7.7
Cash and cash equivalents at beginning of period 25.8 15.1 21.1 13.3
Effect of change in foreign exchange rates -0.1 0.1 0.2 0.1
Cash and cash equivalents at end of period 36.3 21.1 36.3 21.1
*) 2009 restated
ACQUIRED BUSINESSES IN 2010
In April 2010, Alma Media acquired the business operations of Tyrvään Sanomat,
and in June 2010, a controlling majority of 65% in Kotikokki.net Oy.
In March 2010, Alma Media acquired a 60-% shareholding in the Swedish company
Marknadspriser i Sverige AB. Because of the future mandatory share redemption
liability derived from the purchase and shareholder agreements, Marknadspriser i
Sverige AB will be consolidated as a 100% subsidiary and its estimated
redemption price is included in the total consideration and in the contingent
consideration.
Alma Media Corporation acquired in October 2010 the entire stock of Intermedia
Partners Oy (now Alma Intermedia Oy) and MIG Group Oy operating in Pori, Finland
and in November 2010 Suunnittelutoimisto TTNK Helsinki Oy (Titanik Helsinki), an
agency specialized in digital marketing communications.
The following table presents the opening balance sheets of the acquired
operations in the Group, the total acquisition price and impact on cash flow:
Book values before Fair values at the
MEUR consolidation consolidation
--------------------------------------------------------------------------------
Property, plant and
equipment 0.1 0.1
Intangible assets 0.0 1.5
Trade and other
receivables 0.7 0.7
Cash and cash
equivalents 0.3 0.3
--------------------------------------------------------------------------------
Assets, total 1.1 2.6
Deferred tax
liabilities 0.0 0.4
Trade and other
payables 1.0 1.0
--------------------------------------------------------------------------------
Liabilities, total 1.0 1.4
Total identifiable
net assets at fair
value 0.1 1.1
Cash and cash equivalents of acquired
subsidiaries or businesses 0.3
Purchase
consideration
Consideration,
settled in cash 2.6
Contingent
consideration
liability 1.1
--------------------------------------------------------------------------------
Total consideration 3.7
Contingent consideration at
fair value on December
31, 2010 1.0
Contingent considerations are classified as financial assets recognized at fair
value through profit or loss.
The amount of the contingent considerations is based on the net sales and
operating profits of the acquired business during 2010-12. The fair values are
the estimated final considerations discounted to the balance sheet date. The
minimum realizable value of the contingent considerations is 0.2 MEUR.
The fair value of the contingent considerations on December 31, 2010 was MEUR
1.0, and a gain of MEUR 0.1
was recognized in the
finance income.
Goodwill arising on
acquisition
Contingent
consideration 3.7
The share of the non-controlling
interest based on the propotional share
of the specified net assets 0.1
Non-controlling
interest measured at
fair value 0.2
Identifiable net assets of the
acquired business operations -1.1
--------------------------------------------------------------------------------
Goodwill 2.9
The fair values recognized for the identifiable intangible assets are mainly
concerning trademarks, ICT applications and customer contracts. The goodwill,
MEUR 2.9, arising at the business combinations, is mainly arising from the
expected synergies. Since the date of the acquisition, the operating loss of
those businesses has been MEUR 0.0. The revenue of the Group would have been
MEUR 313.4 (reported MEUR 311.4) and the operating profit MEUR 43.6 (reported
(MEUR 43.4), if the acquisition date had been January 1, 2010.
A gain of MEUR 0.8 was recognized on the change in fair value of the contingent
considerations arising from the sales of subsidiary holdings, and a gain of MEUR
0.0 on the change in fair value of the contingent considerations arising from
the acquisitions of associated companies.
REVENUE BY GEOGRAPHICAL AREA, 2010 2009 2010 2009
MEUR Q4 Q4 Q1-Q4 Q1-Q4
---------------------------------------------------
Finland 79.6 75.7 298.4 295.4
Other EU countries 3.2 3.1 12.1 11.9
Other countries 0.2 0.2 0.8 0.5
---------------------------------------------------
Total 83.0 79.0 311.4 307.8
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 31 Dec 2010 31 Dec 2009
-----------------------------------------------------
Newspapers 46.3 45.4
Kauppalehti Group 41.3 41.3
Marketplaces 21.7 11.9
Other operations 28.5 29.9
Non-allocated assets and 46.7 25.9
eliminations
-----------------------------------------------------
Total 184.5 154.4
LIABILITIES BY SEGMENT, MEUR 31 Dec 2010 31 Dec 2009
-----------------------------------------------------
Newspapers 27.4 24.9
Kauppalehti Group 10.4 9.8
Marketplaces 7.7 3.5
Other operations 14.3 12.6
Non-allocated liabilities and 10.0 8.7
eliminations
-----------------------------------------------------
Total 69.7 59.5
2010 2009 2010 2009
CAPITAL EXPENDITURE, MEUR Q4 Q4 Q1-Q4 Q1-Q4
-----------------------------------------------
Newspapers 1.0 0.2 4.0 1.8
Kauppalehti Group 0.8 1.9 1.4 2.6
Marketplaces 0.6 0.1 5.6 0.7
Others 0.4 0.8 1.8 3.0
-----------------------------------------------
Total 2.8 3.0 12.9 8.2
-----------------------------------------------
PROVISIONS
The company's provisions on December 31, 2010 totalled MEUR 0.7 (1.1). The major
part of the provisions concern restructuring provisions. It has not been
necessary to change the estimates made when the provisions were entered.
Restructuring Other
PROVISIONS MEUR provision provisions Total
---------------------------------------------------------------
Jan 1, 2010 0.9 0.2 1.1
Increase in
provisions 0.4 0.1 0.5
Provisions employed -0.9 -0.1 -0.9
---------------------------------------------------------------
Dec 31, 2010 0.5 0.2 0.7
Current 0.5 0.1 0.6
Non-current 0.0 0.1 0.1
Restructuring provision has been made to cover implemented or possible
personnel reductions in different companies.
The provisions are expected to be realized
in 2011.
Other provisions mainly consist of environmental provision for sold property
and other personnel related provisions.
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES, MEUR 31 Dec 2010 31 Dec 2009
--------------------------------------------------------------------------------
Other commitments
Commitments based on agreements 0.1 0.1
Minimum lease payments on other lease agreements:
Within one year 6.7 6.3
Within 1-5 years 21.1 15.2
After 5 years 48.2 19.9
--------------------------------------------------------------------------------
Total 75.9 41.4
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: 1.2 0.4
--------------------------------------------------------------------------------
Changes in commitments and contingencies are mainly due to the new and prolonged
lease contracts made during the financial year for the real estates.
Additionally, the company has signed a lease contract for the real estate of the
printing facilities during the financial year 2010. According to the IAS 17
standard, the contract will be recognized as a finance lease contract when the
printing facility will be operational. The estimated present value of the
minimum lease payments at the implementation day is MEUR 16.8. The printing
facility is estimated to be operational in late 2012.
DERIVATIVE CONTRACTS, MEUR 31 Dec 2010 31 Dec 2009
--------------------------------------------------------------------------------
Commodity derivate contracts,
electricity
derivatives
Fair value * 0.3 0.0
Nominal value 1.0 0.8
* 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 associated companies and companies owned
by them. The following table summarises the business operations undertaken
between Alma Media and its associated companies and the status of their
receivables and liabilities:
2010 2009 2010 2009
RELATED PARTY TRANSACTIONS, MEUR Q4 Q4 Q1-Q4 Q1-Q4
----------------------------------------------------------------
Sales of goods and services 0.1 0.1 0.2 0.2
Purchases of goods and services 0.9 0.9 3.6 3.7
Trade receivable, loan and other
receivables at the end of reporting period 0.0 0.0 0.0 0.0
Trade payable at the reporting date 0.1 0.1 0.1 0.1
----------------------------------------------------------------
Related parties also include the company's senior management (members of the
Board of Directors, presidents and the Group Executive Team). The section The
Alma Media Share - Option Rights of this release presents information on changes
to the current option programme intended to motivate and secure the long-term
commitment of the Group's senior management.
MAIN ACCOUNTING PRINCIPLES (IFRS)
This financial statement release 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. The financial statement release
does not, however, contain all the information or notes to the accounts included
in the annual financial statements. This financial statement release should
therefore be read in conjunction with the company's financial statements for
2010.
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.
Non-recurring items are income or expense arising from non-recurring or rear
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 recognized as non-recurring
items. Non-recurring items are recognized within the corresponding income or
expense group.
The accounting principles of the financial years 2010 and 2009 are comparable.
The company has no discontinued operations to report in the 2009-2010 financial
periods. The appendices summarise the information for the comparison periods by
segment according to both the new and the old segment structure.
The impairment loss for the Marketplaces segment occurred in 2009 was restated
in 2010. The impairment loss was included in the notes to the financial
statements of 2009, though. The impact of the restatement on the basic and
diluted earnings per share in 2009 was EUR 0.01.
The Group has applied the following standards and interpretations from January
1, 2010:
IFRS 3 (2008) Business Combinations
IAS 27 (2008) Consolidated and Separate Financial Statements
IAS 39 Financial Instruments: Recognition and Measurement - Eligible Hedged
Items, amended
IFRIC 17 Distributions of Non-cash Assets to Owners
IFRIC 18 Transfers of Assets from Customers
IFRS - Improvements to IFRSs (April 2009)
IFRS 2 Share-based Payment - Group Cash-settled Share-based Payment
Transactions, amended
The impact of the above new standards and IFRIC interpretations on the Group has
been marginal. The amendments to IFRS 3 have affected the accounting of
corporate acquisitions during the 2010 financial period, such as goodwill and
costs related to the acquisitions.
The figures concerning the whole financial year 2010 in this financial statement
release are audited.
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 the cash flow from operating activities is
strongest in the first and second quarters. This also affects the company's
balance sheet position in different quarters.
GENERAL STATEMENT
This report contains certain statements that are estimates based on the
management's best knowledge at the time they were made. For this reason they
contain a certain amount of risk and uncertainty. The estimates may change in
the event of significant changes in the general economic conditions.
NEXT INTERIM REPORT
Alma Media will publish its interim report for January-March, 2011 on Wednesday,
April 29, 2011, approximately at 9 a.m.
ALMA MEDIA CORPORATION
Board of Directors
ADJUSTMENT OF THE BUSINESS SEGMENT INFORMATION REGARDING FINANCIAL YEAR 2009
1. REVENUE AND OPERATING PROFIT/LOSS BY SEGMENT UNDER NEW SEGMENT STRUCTURE
REVENUE AND OPERATING PROFIT/LOSS BY SEGMENT
UNDER NEW SEGMENT STRUCTURE
2009
REVENUE BY SEGMENT, 2009 2009 2009 2009 2009
MEUR Q1 Q2 Q3 Q4 Q1-Q4
---------------------------------------------------------------
Newspapers
External 52.0 54.9 51.2 55.4 213.4
Inter-segments 0.4 0.6 0.5 0.5 2.1
Newspapers total 52.4 55.5 51.7 55.9 215.5
Kauppalehti Group
External 16.2 16.0 14.5 15.9 62.5
Inter-segments 0.1 0.0 0.1 -0.1 0.3
Kauppalehti Group total 16.2 16.0 14.6 15.8 62.8
Marketplaces
External 7.2 7.1 6.3 6.5 27.0
Inter-segments 0.0 0.0 0.0 0.0 0.0
Marketplace total 7.2 7.0 6.2 6.5 27.0
Others
External 1.2 1.4 1.1 1.1 4.8
Inter-segments 17.0 17.0 16.6 17.2 67.8
Others total 18.2 18.4 17.7 18.3 72.7
Elimination -17.6 -17.6 -17.2 -17.6 -70.2
---------------------------------------------------------------
Total 76.4 79.3 73.0 79.0 307.8
---------------------------------------------------------------
OPERATING PROFIT/LOSS BY SEGMENT, 2009 2009 2009 2009 2009
MEUR * Q1 Q2 Q3 Q4 Q1-Q4
---------------------------------------------------------------
Newspapers 5.2 9.2 6.5 8.8 29.7
Kauppalehti Group 0.6 1.4 2.3 2.3 6.7
Marketplaces -0.2 -0.2 0.0 -0.3 -0.7
Other operations 0.9 1.5 2.4 1.0 5.7
---------------------------------------------------------------
Total 6.5 12.0 11.1 11.8 41.4
---------------------------------------------------------------
*) incl. one-time items
REVENUE AND OPERATING PROFIT/LOSS BY SEGMENT
UNDER OLD SEGMENT STRUCTURE
2009
REVENUE BY SEGMENT, 2009 2009 2009 2009 2009
MEUR Q1 Q2 Q3 Q4 Q1-Q4
-------------------------------------------------------------
Newspapers
External 52.8 56.0 51.9 56.2 216.9
Inter-segments 1.1 1.1 1.1 1.1 4.4
Newspapers total 53.9 57.1 53.0 57.3 221.3
Kauppalehti Group
External 16.2 16.0 14.5 15.9 62.5
Inter-segments 0.1 0.1 0.1 -0.1 0.3
Kauppalehti Group total 16.2 16.0 14.6 15.8 62.8
Marketplaces
External 7.2 7.1 6.3 6.5 27.0
Inter-segments 0.0 0.0 0.0 0.0 0.0
Marketplace total 7.2 7.0 6.2 6.5 27.0
Others
External 0.4 0.3 0.4 0.3 1.4
Inter-segments 3.6 3.9 3.5 3.5 14.5
Others total 4.0 4.2 3.9 3.8 15.9
Elimination -4.9 -5.0 -4.7 -4.5 -19.2
-------------------------------------------------------------
Total 76.4 79.3 73.0 79.0 307.8
-------------------------------------------------------------
OPERATING PROFIT/LOSS BY SEGMENT, 2009 2009 2009 2009 2009
MEUR * Q1 Q2 Q3 Q4 Q1-Q4
-------------------------------------------------------------
Newspapers 6.9 11.1 8.8 10.5 37.3
Kauppalehti Group 0.6 1.4 2.3 2.3 6.7
Marketplaces -0.2 -0.2 0.0 -0.3 -0.7
Other operations -0.8 -0.3 0.0 -0.7 -1.9
-------------------------------------------------------------
Total 6.5 11.9 11.1 11.8 41.4
-------------------------------------------------------------
*) incl. one-time items
CHANGES IN REVENUE AND OPERATING PROFIT/LOSS
BY SEGMENT
2009
REVENUE BY SEGMENT, 2009 2009 2009 2009 2009
MEUR Q1 Q2 Q3 Q4 Q1-Q4
---------------------------------------------------------------
Newspapers
External -0.8 -1.1 -0.7 -0.8 -3.4
Inter-segments -0.7 -0.5 -0.5 -0.6 -2.3
Newspapers total -1.5 -1.6 -1.2 -1.4 -5.8
Kauppalehti Group
External 0.0 0.0 0.0 0.0 0.0
Inter-segments 0.0 0.0 0.0 0.0 0.0
Kauppalehti Group total 0.0 0.0 0.0 0.0 0.0
Marketplaces
External 0.0 0.0 0.0 0.0 0.0
Inter-segments 0.0 0.0 0.0 0.0 0.0
Marketplace total 0.0 0.0 0.0 0.0 0.0
Others
External 0.8 1.1 0.7 0.8 3.4
Inter-segments 13.4 13.1 13.1 13.7 53.3
Others total 14.2 14.2 13.8 14.5 56.7
Elimination -12.7 -12.6 -12.5 -13.1 -51.0
---------------------------------------------------------------
Total 0.0 0.0 0.0 0.0 0.0
---------------------------------------------------------------
OPERATING PROFIT/LOSS BY SEGMENT, 2009 2009 2009 2009 2009
MEUR * Q1 Q2 Q3 Q4 Q1-Q4
---------------------------------------------------------------
Newspapers -1.7 -1.8 -2.4 -1.7 -7.5
Kauppalehti Group 0.0 0.0 0.0 0.0 0.0
Marketplaces 0.0 0.0 0.0 0.0 0.0
Other operations 1.7 1.8 2.4 1.7 7.5
---------------------------------------------------------------
Total 0.0 0.0 0.0 0.0 0.0
---------------------------------------------------------------
2. KEY FIGURES BY SEGMENT
KEY FIGURES BY SEGMENT UNDER NEW SEGMENT STRUCTURE
2009
NEWSPAPERS 2009 2009 2009 2009 2009
Key figures, MEUR Q1 Q2 Q3 Q4 Q1-Q4
------------------------------------------------------------------------
Revenue 52.4 55.5 51.7 55.9 215.5
Circulation revenue 26.9 27.2 28.5 27.2 109.9
Media advertising revenue 24.4 27.3 22.2 27.4 101.3
Other revenue 1.0 1.0 1.1 1.3 4.4
Operating profit 5.2 9.2 6.5 8.8 29.7
Operating profit, % 9.9 16.7 12.5 15.8 13.8
Operating profit without one-time items 5.9 9.4 6.9 8.6 30.8
Operating profit without one-time items, % 11.3 16.8 13.4 15.4 14.3
Average no. of personnel,
calculated as full-time
employees excl. delivery
staff 1,002 1,015 1,021 1,002 1,002
Average no. of delivery
staff 365 370 377 370 370
KAUPPALEHTI GROUP 2009 2009 2009 2009 2009
Key figures, MEUR Q1 Q2 Q3 Q4 Q1-Q4
------------------------------------------------------------------------
Revenue 16.2 16.2 14.6 15.8 62.8
Circulation revenue 3.8 3.5 4.0 4.0 15.4
Media advertising revenue 4.3 4.0 3.0 5.0 16.3
Other Revenue 8.1 8.6 7.5 6.8 31.0
Operating profit 0.6 1.4 2.3 2.3 6.7
Operating profit, % 4.0 9.0 15.5 14.8 10.7
Operating profit without one-time items 0.9 1.6 2.3 2.0 6.7
Operating margin without one-time items, % 5.6 9.6 15.5 12.5 10.7
Average no. of personnel,
calculated as full-time
employees 488 490 477 453 477
MARKETPLACES 2009 2009 2009 2009 2009
Key figures, MEUR Q1 Q2 Q3 Q4 Q1-Q4
------------------------------------------------------------------------
Revenue 7.2 7.0 6.2 6.5 27.0
Operations in Finland 6.0 5.9 5.2 5.4 22.4
Operations outside Finland 1.2 1.2 1.1 1.1 4.7
Operating profit -0.2 -0.2 0.0 -0.3 -0.7
Operating margin, % -2.8 -3.2 0.7 -4.3 -2.5
Operating profit without
one-time items -0.2 -0.2 0.2 -0.3 -0.5
Operating margin without
one-time items, % -2.6 -3.2 2.4 -4.5 -2.0
Average no. of personnel,
calculated as full-time
employees 230 202 189 178 200
KEY FIGURES BY SEGMENT UNDER OLD SEGMENT STRUCTURE
2009
NEWSPAPERS 2009 2009 2009 2009 2009
Key figures, MEUR Q1 Q2 Q3 Q4 Q1-Q4
------------------------------------------------------------------------
Revenue 53.9 57.1 53.0 57.3 221.3
Circulation revenue 26.9 27.2 28.5 27.2 109.9
Media advertising revenue 24.4 27.3 22.2 27.4 101.3
Other revenue 2.5 2.6 2.3 2.7 10.2
Operating profit 6.9 11.1 8.8 10.5 37.3
Operating profit, % 12.8 19.4 16.7 18.3 16.8
Operating profit without one-time items 7.6 11.2 9.3 10.3 38.4
Operating profit without one-time items, % 14.1 19.6 17.5 17.9 17.3
Average no. of personnel,
calculated as full-time
employees excl. delivery
staff 1,152 1,176 1,185 1,084 1,149
Average no. of delivery
staff 937 998 1,045 894 969
KAUPPALEHTI GROUP 2009 2009 2009 2009 2009
Key figures, MEUR Q1 Q2 Q3 Q4 Q1-Q4
------------------------------------------------------------------------
Revenue 16.2 16.0 14.6 15.8 62.8
Circulation revenue 5.9 5.6 5.9 6.1 23.5
Media advertising revenue 4.3 4.0 3.0 5.0 16.3
Other revenue 6.0 6.4 5.6 4.7 23.0
Operating profit 0.6 1.4 2.3 2.3 6.7
Operating profit, % 4.0 9.0 15.5 14.8 10.7
Operating profit without
one-time items 0.9 1.6 2.3 2.0 6.7
Operating margin without
one-time items, % 5.6 9.6 15.5 12.5 10.7
Average no. of personnel,
calculated as full-time
employees 488 490 477 453 477
MARKETPLACES 2009 2009 2009 2009 2009
Key figures, MEUR Q1 Q2 Q3 Q4 Q1-Q4
------------------------------------------------------------------------
Revenue 7.2 7.0 6.2 6.5 27.0
Operations in Finland 6.0 5.9 5.2 5.4 22.4
Operations outside Finland 1.2 1.1 1.1 1.1 4.7
Operating profit -0.2 -0.2 0.0 -0.3 -0.7
Operating margin, % -2.8 -3.2 0.7 -4.3 -2.5
Operating profit without
one-time items -0.2 -0.2 0.2 -0.3 -0.5
Operating margin without
one-time items, % -2.8 -3.2 2.4 -4.5 -2.0
Average no. of personnel,
calculated as full-time
employees 230 202 189 178 200
CHANGES IN KEY FIGURES BY SEGMENT
2009
NEWSPAPERS 2009 2009 2009 2009 2009
Key figures, MEUR Q1 Q2 Q3 Q4 Q1-Q4
-----------------------------------------------------------------
Revenue -1.5 -1.6 -1.2 -1.4 -5.8
Circulation revenue 0.0 0.0 0.0 0.0 0.0
Media advertising revenue 0.0 0.0 0.0 0.0 0.0
Other revenue -1.5 -1.6 -1.2 -1.4 -5.8
Operating profit -1.7 -1.8 -2.4 -1.7 -7.5
Operating profit without one-time items -1.7 -1.8 -2.4 -1.7 -7.5
Average no. of personnel,
calculated as full-time
employees excl. delivery
staff -151 -161 -164 -82 -147
Average no. of delivery
staff -573 -628 -668 -525 -599
KAUPPALEHTI GROUP 2009 2009 2009 2009 2009
Key figures, MEUR Q1 Q2 Q3 Q4 Q1-Q4
-----------------------------------------------------------------
Revenue 0.0 0.0 0.0 0.0 0.0
Circulation revenue -2.0 -2.2 -1.9 -2.1 -8.1
Media advertising revenue 0.0 0.0 0.0 0.0 0.0
Other Revenue 2.0 2.2 1.9 2.1 8.1
Operating profit 0.0 0.0 0.0 0.0 0.0
Operating profit without
one-time items 0.0 0.0 0.0 0.0 0.0
Average no. of personnel,
calculated as full-time
employees 0 0 0 0 0
MARKETPLACES 2009 2009 2009 2009 2009
Key figures, MEUR Q1 Q2 Q3 Q4 Q1-Q4
-----------------------------------------------------------------
Revenue 0.0 0.0 0.0 0.0 0.0
Operations in Finland 0.0 0.0 0.0 0.0 0.0
Operations outside Finland 0.0 0.0 0.0 0.0 0.0
Operating profit 0.0 0.0 0.0 0.0 0.0
Operating profit without
one-time items 0.0 0.0 0.0 0.0 0.0
Average no. of personnel,
calculated as full-time
employees 0 0 0 0 0
3. ASSETS, LIABILITIES AND CAPITAL EXPENDITURE BY SEGMENT
ASSETS, LIABILITIES AND CAPITAL EXPENDITURE BY SEGMENT
UNDER NEW SEGMENT STRUCTRE
2009
ASSETS BY SEGMENT, MEUR Mar 31 2009 Jun 30 2009 Sep 30 2009 Dec 31 2009
Newspapers 44.0 43.7 43.6 45.4
Kauppalehti Group 53.7 47.3 49.6 41.3
Marketplaces 14.3 13.3 13.2 13.0
Other operations and 33.5 33.0 32.1 29.9
eliminations
Non-allocated assets 35.2 18.6 16.9 25.9
--------------------------------------------------------------------------------
Total 180.7 156.0 155.4 155.5
--------------------------------------------------------------------------------
LIABILITIES BY SEGMENT, MEUR Mar 31 2009 Jun 30 2009 Sep 30 2009 Dec 31 2009
Newspapers 36.8 32.1 27.2 24.9
Kauppalehti Group 15.9 13.2 11.4 9.8
Marketplaces 4.1 3.5 3.2 3.5
Other operations and 14.3 12.1 12.1 12.6
eliminations
Non-allocated liabilities 39.2 17.0 14.6 8.7
--------------------------------------------------------------------------------
Total 110.4 77.9 68.6 59.5
--------------------------------------------------------------------------------
GROUP CAPITAL EXPENDITURE,
MEUR 2009 2009 2009 2009
Q1 Q2 Q3 Q4
Newspapers 0.5 0.5 0.7 0.2
Kauppalehti Group 0.3 0.3 0.1 1.9
Marketplaces 0.2 0.3 0.1 0.1
Others 0.6 0.5 1.2 0.8
--------------------------------------------------------------------------------
Total 1.5 1.4 2.2 3.0
--------------------------------------------------------------------------------
ASSETS, LIABILITIES AND CAPITAL EXPENDITURE BY SEGMENT
UNDER OLD SEGMENT STRUCTRE
2009
ASSETS BY SEGMENT, MEUR Mar 31 2009 Jun 30 2009 Sep 30 2009 Dec 31 2009
Newspapers 65.3 64.1 63.4 65.3
Kauppalehti Group 53.7 47.3 49.6 41.3
Marketplaces 14.3 13.3 13.2 13.0
Other operations and 12.2 12.6 12.3 10.0
eliminations
Non-allocated assets 35.2 18.6 16.9 25.9
--------------------------------------------------------------------------------
Total 180.7 156.0 155.4 155.5
--------------------------------------------------------------------------------
LIABILITIES BY SEGMENT, MEUR Mar 31 2009 Jun 30 2009 Sep 30 2009 Dec 31 2009
Newspapers 43.9 38.6 33.3 31.7
Kauppalehti Group 15.9 13.2 11.4 9.8
Marketplaces 4.1 3.5 3.2 3.5
Other operations and 7.3 5.6 6.1 5.8
eliminations
Non-allocated liabilities 39.2 17.0 14.6 8.7
--------------------------------------------------------------------------------
Total 110.4 77.9 68.6 59.5
--------------------------------------------------------------------------------
GROUP CAPITAL EXPENDITURE, 2009 2009 2009 2009
MEUR
Q1 Q2 Q3 Q4
--------------------------------------------------------------------------------
Newspapers 0.9 0.6 1.0 0.8
Kauppalehti Group 0.3 0.3 0.1 1.9
Marketplaces 0.2 0.3 0.1 0.1
Others 0.1 0.3 1.0 0.2
--------------------------------------------------------------------------------
Total 1.5 1.4 2.2 3.0
--------------------------------------------------------------------------------
CHANGES IN ASSETS, LIABILITIES AND CAPITAL EXPENDITURE
BY SEGMENT
2009
ASSETS BY SEGMENT, MEUR Mar 31 2009 Jun 30 2009 Sep 30 2009 Dec 31 2009
Newspapers -21.2 -20.4 -19.8 -19.9
Kauppalehti Group 0.0 0.0 0.0 0.0
Marketplaces 0.0 0.0 0.0 0.0
Other operations and 21.2 20.4 19.8 19.9
eliminations
Non-allocated assets 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
Total 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
LIABILITIES BY SEGMENT, MEUR Mar 31 2009 Jun 30 2009 Sep 30 2009 Dec 31 2009
Newspapers -7.1 -6.5 -6.0 -6.8
Kauppalehti Group 0.0 0.0 0.0 0.0
Marketplaces 0.0 0.0 0.0 0.0
Other operations and 7.1 6.5 6.0 6.8
eliminations
Non-allocated liabilities 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
Total 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
GROUP CAPITAL EXPENDITURE, 2009 2009 2009 2009
MEUR
Q1 Q2 Q3 Q4
--------------------------------------------------------------------------------
Newspapers -0.4 -0.2 -0.2 -0.6
Kauppalehti Group 0.0 0.0 0.0 0.0
Marketplaces 0.0 0.0 0.0 0.0
Others 0.4 0.2 0.2 0.6
--------------------------------------------------------------------------------
Total 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
[HUG#1489471]
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