Talentum Oyj - Interim report (Q1 and Q3)

Talentum Oyj, Interim Report Release, January-September 2012

Talentum Oyj, Interim Report Release, January-September 2012

24 October 2012 at 08:30

July-September 2012 brief, continuing operations:

- Talentum Group's net sales came to EUR 14.3 million (EUR 15.6 million), a
decrease of 8.4% 
- Talentum Group's comparable net sales without Talentum HR AB came to EUR 14.3
million (EUR 14.5 million), a decrease of 1.2%. 
- Operating income without non-recurring items was EUR -1.2 million(EUR -1.0
million) 
- Operating income(EBIT)was EUR -1.2 million(EUR -0.8 million)
- The amount of media advertising in Talentum's media decreased by 21,2% but
circulation revenue remained at the same level 

Net sales of business functions:
- Magazine Business Finland: EUR 5.1 million(EUR 6.1 million)
- Magazine Business Sweden: EUR 4.1 million(EUR 4.3 million)
- Events: EUR 2.1 million(EUR 1.7 million)
- Books and Legal Training: EUR 1.1 million(EUR 1.0 million)
- Direct Marketing: EUR 2.7 million(EUR 2.2 million)

January-September 2012 in brief, continuing operations:

- Talentum Group's net sales came to EUR 54.8 million(EUR 58.9 million, a
decrease of 7.0% 
- Talentum Group's comparable net sales without Talentum HR AB came to EUR 54.8
million (EUR 55.6 million), a decrease of 1.5%. 
- Operating income without non-recurring items was EUR -0.0 million(EUR 0.7
million) 
- Operating income(EBIT)was EUR -3.1 million(EUR 0.7 million)
- The amount of media advertising in Talentum's media decreased by 16.5% but
circulation revenue remained at the same level 
- Net liabilities were EUR 4.9 million(EUR -1.5 million on 31 December 2011).

Net sales of business functions:
- Magazine Business Finland: EUR 20.1 million (EUR 22.4 million)
- Magazine Business Sweden: EUR 16.6 million (EUR 18.0 million)
- Events: EUR 7.9 million (EUR 6.2 million)
- Books and Legal Training: EUR 4.9 million (EUR 4.8 million)
- Direct Marketing: EUR 8.2 million (EUR 6.7 million)

KEY FINANCIAL FIGURES, CONTINUING OPERATIONS *)

EUR million                          7-9/     7-9/     1-9/     1-9/     1-12/  
                                     2012     2011     2012     2011      2011  
--------------------------------------------------------------------------------
Net sales                              14.3     15.6     54.8     58.9      83.5
--------------------------------------------------------------------------------
Operating income without               -1.2     -1.0     -0.0      0.7       2.6
 non-recurring items                                                            
--------------------------------------------------------------------------------
Operating income                       -1.2     -0.8     -3.1      0.7      -0.4
--------------------------------------------------------------------------------
as % of net sales                      -8.6     -5.2     -5.7      1.2      -0.5
--------------------------------------------------------------------------------
Net cash from operating activities                       -2.6     -0.2       4.6
--------------------------------------------------------------------------------
Total assets                                             57.8     54.5      57.3
--------------------------------------------------------------------------------
Investments                             0.5      0.2      1.4      0.7       1.4
--------------------------------------------------------------------------------
as % of net sales                       3.2      1.3      2.5      1.2       1.7
--------------------------------------------------------------------------------
Equity ratio %                                           42.7     52.6      54.1
--------------------------------------------------------------------------------
Gearing ratio % (net debt to                             27.1     12.9      -6.7
 equity)                                                                        
--------------------------------------------------------------------------------
Interest-bearing liabilities                              6.0      4.2       1.2
--------------------------------------------------------------------------------
Net interest-bearing liabilities                          4.9      3.0      -1.5
--------------------------------------------------------------------------------
Personnel on average                                      743      744       754
--------------------------------------------------------------------------------
Earnings per share, EUR               -0.03    -0.02    -0.07     0.01     -0.04
--------------------------------------------------------------------------------
Cash flow from operating                                -0.06    -0.00      0.11
 activities per share, EUR                                                      
--------------------------------------------------------------------------------
Equity per share, EUR                                    0.41     0.53      0.50
--------------------------------------------------------------------------------

*) The figures for the comparative year do not include the construction
information business sold in August 2011, which is presented as a discontinued
business. The figures for the comparative year include Talentum HR AB, which
was sold in December 2011. 

  -- In the comparative year, Talentum HR AB's net sales for July-September were
     EUR 1.1 million, operating income was EUR -0.1 million and operating income
     without non-recurring items was EUR 0.1 million. In the comparative year,
     Talentum HR AB's net sales for January-September amounted to EUR 3.3
     million, operating income was
 EUR 
-0.8 million and operating income without non-recurring items was EUR -0.6
     million. In the comparative year, Talentum HR AB's net sales for
     January-December was EUR 4.5 million, operating income EUR -3.6 million and
     operating income without non-recurring items was EUR -0.5 million.

Reporting

Talentum's business operations are divided into six segments: Magazine Business
Finland, Magazine Business Sweden, Event Business, Books and Legal Training,
Direct Marketing and Other Operations. 

A separate stock exchange release on the change in reporting segments was
issued on 17 April 2012. 

AARNE AKTAN, CEO:

”There was a strong negative change in advertising markets in Sweden in
September. A decrease of 20.3 percent in general Swedish advertising sales
markets reflects this change as well. Also Talentum's position on the markets
weakened strongly and therefore we lowered the estimate for net sales and
operating income for 2012. 

Events continued good growth and we are pleased with the results. Also Direct
Marketing performed fairly well both growth and profit wise. 

Books and Legal Training developed steadily despite challenging markets.

The Finnish periodicals advertising market decreased by 11.9 percent in
July-September compared with previous year. Finnish online markets grew 7.9
percent during the third quarter from previous year. Magazine Business Finland
developed as expected on unstable markets. 

We are actively focusing on developing new products and services with the help
our newly established Development Team to further strengthen our
competitiveness.” 


Operating environment and seasonal variation

Talentum estimates that weak economic growth in the main market areas, Finland
and Sweden in the third quarter and growing general economic unstability will
decrease the volume of advertising in 2012. 

According to TNS Media Intelligence, the Finnish advertising market decreased
by 3.7% in January-September. Advertising decreased by 5.4% in periodicals and
increased by 5.2% in professional and business journals. Online media
advertising increased by 8.5%. In Sweden, total media advertising decreased by
0.5% in January-September, while in professional journals it decreased by 8.6%
(Sveriges Mediebyråer). 

The media and advertising markets are subject to seasonal variations.
Talentum's magazines and books do not generally come out during the summer
holiday season, which is why the third quarter is the weakest in terms of
sales. Income for the third period is almost always negative. Operations are
generally at their busiest in the final quarter. 

Talentum's prospects for 2012

On October 12, 2012 Talentum Oyj issued a stock exchange release and lowered
the estimates for net sales and operating income for 2012. The change is mainly
based on the fact that estimates of media sales in Magazine Business Sweden
have become weaker. 

According to the new estimate Talentum Oyj's comparable net sales and operating
income without non-recurring items for 2012 are estimated to remain at a
slightly lower lever than in 2011. 

In the previous estimate in the latest interim report published on July 20,
2012 Talentum estimated that its comparable net sales in 2012 (2011: about EUR
79.0 million without Talentum HR AB, which was sold at the end of the year)
will remain at the same level and that operating income without non-recurring
items will increase compared to 2011. 

General statement

The forecasts and estimates presented here are based on the management's
current view of economic development, and the actual results may differ
substantially from what is now expected of the company. 

Analyst and press briefing

A briefing for Q3 and January-September interim report will be held for
analysts and press on October 24 at 11:00 am at the Talentum head office,
Annankatu 34-36 B, Kamppi, Helsinki, Finland. 

TALENTUM OYJ
Board of Directors

ADDITIONAL INFORMATION
CEO Aarne Aktan, tel. +358 40 342 4440, and CFO Niclas Köhler, tel. +358 40 342
4420. 


DISTRIBUTION

NASDAQ OMX Helsinki
Principal media
www.talentum.com

Talentum Oyj
Annankatu 34-36 B
FI-00100 Helsinki
Telephone +358 20 44 240
www.talentum.com

Attachments:

TALENTUM_OYJ INTERIM_Q3 2012_.pdf