2010-02-12 08:00:00 CET
2010-02-12 08:10:47 CET
REGULATED INFORMATION
Alma Media - Financial Statement Release
Alma Media Corporation: Financial statements release 2009: Net sales decreased, but relative profitability was maintained in a difficult market conditions
Alma Media Corporation Financial statement release February 12, 2010 at
09:00am
ALMA MEDIA CORPORATION: FINANCIAL STATEMENTS RELEASE 2009
Net sales decreased, but relative profitability was maintained in a difficult
market conditions
Highlights of the financial year 2009
-Net sales MEUR 307.8 (341.2), down 9.8%.
-Operating profit MEUR 41.4 (48.3), 13.5% (14.2%) of net sales, operating profit
without one-time items MEUR 42.6 (47.7).
-Profit before tax MEUR 40.8 (52.4), profit before tax excluding one-time items
MEUR 42.0 (49.9).
-Result of the financial period MEUR 29.3 (39.0).
-Earnings per share EUR 0.39 (0.51).
-Dividend for financial year 2008 was EUR 0.30 (0.90) per share. The Board of
Directors did not use the authorisation by the Annual General Meeting to
distribute additional dividends.
October-December 2009 in brief
-Net sales MEUR 79.0 (86.6), down 8.8%.
-Operating profit MEUR 11.8 (9.5), 15.0% (10.9%) of net sales; operating profit
up 25%.
-Operating profit without one-time items MEUR 11.3 (9.5), 14.3% (10.9%) of net
sales, up 19.2%.
-Earnings per share EUR 0.12 (0.12).
Dividend proposal for the Annual General Meeting
-Alma Media Corporation's Board of Directors will propose to the Annual General
Meeting on March 11, 2010 that a dividend of EUR 0.40 (0.30) per share be paid
for the 2009 financial year.
Outlook for 2010:
-Alma Media expects its comparable net sales and operating profit to increase
moderately from the 2009 level as a result of gradual growth in advertising
sales.
-First-quarter net sales and operating profit are expected to remain close to
the previous year's level.
Kai Telanne, President and CEO:
Alma Media's year 2009 began in an extremely difficult market environment. When
the Finnish national economy took a downturn, our advertising net sales
plummeted during the first half of the year. The business units Kauppalehti and
Marketplaces, as well as the newspaper Aamulehti, particularly suffered from the
weak advertising market. The decline in the first quarter in comparison with the
same period in 2008 levelled during the second quarter, and advertising sales in
newspapers stabilised at a level approximately one-fifth lower than in the
previous year. After the drop at the beginning of the year, uncertainty in the
media market continued in the second half of the year.
The full-year net sales of the Newspapers segment declined 6.6%. Thanks to
quickly implemented savings measures, however, we managed to maintain the
proportional operating profit of the segment at a good 17.3 % (17.5%) level.
Towards the end of the year, newspaper advertising in general developed poorly.
There was an upturn in online advertising in the last two months of the year.
Regardless of the weak demand, the market shares of our online services grew,
for example in home sales and recruitment advertising. Online sales accounted
for 13.1% (13.1%) of our net sales at the end of the year.
As expected,the circulations of Alma Media's regional and local newspapers
declined slightly, The circulation of Kauppalehti, on the other hand, grew to a
record level. The single-copy sales of Iltalehti declined aligned to the decline
of the overall afternoon paper market. The increases in the subscription prices
of newspapers to offset rising costs boosted circulation net sales.
The uncertainty prevailing in the media market in the last half of 2009 has
continued in January and February 2010.
For further information, please contact:
Kai Telanne, President and CEO, tel. +358 10 665 3500
Tuomas Itkonen, CFO, tel. +358 10 665 2244.
Conference, webcast and conference call:
A conference in Finnish for analysts, investors and media will be held today on
February 12 at 11:00-12:00 hrs EET in the Akseli Gallen-Kallela room of Hotel
Kämp, address Pohjoisesplanadi 29, Helsinki. The annual result will be presented
by Kai Telanne, President & CEO, and Tuomas Itkonen, CFO. Other members of the
company's management will also be present. The presentation material will be
available on www.almamedia.fi <http://www.almamedia.fi/>/calendar at 11.00 EET.
An English-language conference call and audio webcast concerning the financial
result 2009 will begin on February 12, 2010 at 14:00 hrs EET. You can
participate in the conference by calling +44 20 3003 2666 or follow the direct
audio webcast at the web addresswww.almamedia.fi/investors<http://www.almamedia.fi/investors>.
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, 2009
The descriptive part of this review focuses on the annual financial statements.
The comparisons according to the International Financial Reporting Standards
(IFRS) refer to the figures from the corresponding period in 2008 unless
otherwise stated. The full-year figures in the financial statement release are
audited. The figures in the tables are independently rounded.
CHANGES IN GROUP STRUCTURE IN 2009
The ownership of Alma Media Group in Kotikokki.net Oy increased to 40% in June
2009, and the company is reported as an associate company in the Newspapers
segment as part of Iltalehti in the consolidated financial statements. On
November 4, 2009, Alma Media sold100% of shares of of Kauppalehti 121 Oy. Balti
Uudistetalituse AS, part of the BNS group in the Kauppalehti Group segment,
acquired 100% ownership of UAB "Cision Lietuva" operating in Lithuania on
October 1, 2009. In May 2009, Alma Media Group sold the business operations of
Motors24 vehicle sales portals, which belonged to the Marketplaces segment and
operated in Estonia, Latvia and Lithuania.
Suomen Paikallissanomat Oy discontinued the city paper Kokkolan Sanomatpublished
in Kokkola on December 3, 2009, and on the same date sold the city paper
Vieskalainen published in Ylivieska to Jokilaaksojen Kustannus Oy.
The Group'slegal structure changed through two mergers. Alma Media Corporation's
subsidiary Jadecon Oy merged with Kustannusosakeyhtiö Iltalehti Oy on December
31, 2009. Harjavallan Kustannus Oy merged with Satakunnan Kirjateollisuus Oy on
November 30, 2009.
CONSOLIDATED AND SEGMENT NET SALES AND RESULTS OCTOBER-DECEMBER 2009
Group's net sales in October-December 2009 totalled MEUR 79.0 (86.6). Operating
profit amounted to MEUR 11.8 (9.5). The fourth-quarter comparable operating
profit was MEUR 11.3 (9.5), up 19.2% from the comparison period. The operating
margin was 15.0% (10.9%), excluding one-time items 14.3% (10.9%). The operating
profit for October-December 2009 includes one-time capital gains in the amount
of MEUR 0.6, generated by the sale of business operations.
Net sales for the Newspapers segment amounted to MEUR 57.3 (61.1). Net sales for
the segment's advertising sales declined by 12.3%. Towards the end of the
quarter, Iltalehti increased its online advertising sales from the comparison
period. The circulation net sales of Newspapers increased, supported by price
increases. Due to a general decline in the afternoon paper market, Iltalehti's
circulation net sales decreased in the last quarter. Operating profit for
Newspapers in October-December was MEUR 10.5 (10.5). Operating margin was 18.3%
(17.2%).
Kauppalehti Group's net sales were MEUR 15.8 (19.0). The decline of the
segment's advertising sales slowed down to -15.4% during the last quarter,
supported by the positive development of online advertising sales. Circulation
sales were down 5.4%. Kauppalehti Group's operating profit was MEUR 2.3 (2.0);
excluding one-time items, the operating profit remained at the level of the
comparison period, MEUR 2.0 (2.0). The operating profit of the segment for the
fourth quarter includes a one-time gain of MEUR 0.4, generated by the sale of
business operations.
The Marketplaces segment had net sales of MEUR 6.5 (7.5). Marketplaces recorded
an operating loss of MEUR 0.3 (loss of MEUR 1.0). The declining net sales and
the operating loss were a result of the continued weak classified advertising
market of home sales, vehicles and recruitment during the quarter.
Key figures by segments in 2009 are reported starting on page 6.
CONSOLIDATED NET SALES AND RESULT 2009
Alma Media Group's net sales in 2009 totalled MEUR 307.8 (341.2). Net sales
decreased from the comparison period, in particular due to the declining net
sales from advertising sales. Circulation sales remained at the previous year's
level. Consolidated advertising net sales amounted to MEUR 140.6 (168.8).
Circulation net sales were MEUR 133.3 (133.0). Online net sales amounted to MEUR
40.4 (44.7). Online net sales accounted for 13.1% (13.1%) of consolidated net
sales.
The consolidated operating profit declined from the previous year to MEUR 41.4
(48.3). The operating margin was 13.5% (14.2%). The operating profit for the
financial period, excluding one-time items, was MEUR 42.6 (47.7). The operating
margin without one-time items was 13.9% (14.0%). The operating profit for 2009
includes one-time items in the amount of MEUR -1.2 (0.6).One-time items in the
reported figures of 2009 are comprised of restructuring costs due to cost saving
measures and sales of business operations. The operating profit for the
comparison period included MEUR 0.6 capital gains from the sale of property.
Profit before taxes for the financial period was MEUR 40.8 (52.4). The result
before taxes includes one-time items totalling MEUR -1.2 (2.5). The 2009
one-time items are comprised of restructuring costs due to cost saving measures
and sales of business operations. The one-time items of the comparison period
include capital gains from sale of property and the shares of AP-Paino Oy.
The result for the financial period 2009 was MEUR 29.3 (39.0), representing a
9.5% (11.4%) margin.
The development of consolidated net sales was in line with the management's
forecasts earlier in the year. Comparable net sales and operating profit fell
short of the comparison period as expected. In December, the company issued a
profit warning as the company's advertising sales developed better than
anticipated during the last two months of the year. The significant slowdown in
advertising sales brought the full-year operating profit below the previous
year's level as expected. Due to cost savings from savings measures and the
decrease in business operations, consolidated operating profit without one-time
items only declined by MEUR5.0 to MEUR 42.6 (47.7).
OUTLOOK FOR 2010
The Finnish media market is forecast to remain weak in the early part of 2010. A
gradual upturn in advertising sales is expected if the GDP follows growth
predictions during 2010.
Alma Media expects the single-copy sales of afternoon papers to decline further
in line with the development in 2009. Kauppalehti's circulation is expected to
decline slightly from the 2009 level because of its structural changes. The
development of the employment situation is expected to affect the circulations
of Alma Media's regional and local papers. Alma Media estimates the Finnish
newspaper advertising market to grow moderately in 2010. Growth in online
advertising is expected to strengthen during 2010 from the previous year.
Alma Media estimates that its comparable net sales and operating profit will
grow moderately from the 2009 level as a result of the gradual growth in media
advertising. The first-quarter net sales and operating profit are expected to
remain close to the previous year's level.
MARKET CONDITIONS
The Finnish national economy declined steeply in 2009. According to Statistics
Finland, the Finnish GDP declined 7.6% in the first quarter of 2009, 9.4% in the
second quarter and 9.1% in the third quarter. During the full year 2009, the
Finnish GDP is forecast to have declined 4.5-7.5%. In 2010, the GDP is forecast
to grow moderately, from 0% to 2%.
According to research subscribed by The Advisory Board of Advertising and
conducted by TNS Gallup Oy, the total media advertising spend in Finland in
2009 was MEUR 1,263 (1,500), down 15.8%. Of the total spending, newspapers and
city papers accounted for 42.9 (45.8%), down 21.2% from the previous year, and
television for 18.8% (17.8%). The share of online advertising grew to 12.5%
(10.1%).
According to TNS Media Intelligence, the total advertising volume declined by
11.6% in the last quarter of the year. In December 2009, media advertising
decreased 4.3% compared to the year before. Newspaper advertising declined
15.6% in the last quarter, 7.2% in December. Online advertising grew by 6.4% in
the last quarter, 10.3% in December.
GROUP KEY FIGURES P12 P12 P12
KEY FIGURES 2009 2008 Change 2009 2008 Change 2007
MEUR Q4 Q4 % Q1-Q4 Q1-Q4 % Q1-Q4
--------------------------------------------------------------------------------
Net sales 79.0 86.6 -8.8 307.8 341.2 -9.8 328.9
Operating profit 11.8 9.5 25.0 41.4 48.3 -14.2 64.4
% of net sales 15.0 10.9 13.5 14.2 19.6
Operating profit without
one-time items 11.3 9.5 19.2 42.6 47.7 -10.5 52.9
% of net sales 14.3 10.9 13.9 14.0 16.1
Profit before tax 11.9 11.7 1.7 40.8 52.4 -22.2
Profit without one-time
items 11.3 9.8 14.8 42.0 49.9 -15.9
Profit for the period 8.8 8.9 -1.3 29.3 39.0 -24.7
Return on Equity (ROE)* 44.2 49.0 -9.8 31.8 37.7 -15.6 43.8
Return on Invets (ROI)* 41.0 39.2 4.6 29.1 34.8 -16.3 39.9
Net financial expenses 0.1 0.4 83.7 0.3 0.4 10.6 -0.1
Net financial expenses, %
of net sales 0.1 0.5 0.1 0.1
Share of associated
companies' results 0.1 2.6 -96.5 -0.3 4.5 -107.1 3.5
Balance sheet total 155.5 166.9 -6.9 181.3
Gross capital expenditure 3.0 2.9 4.1 8.2 14.5 -43.2 12.1
Gross capital expenditure,
% of net sales 3.8 3.3 2.7 4.2 3.7
Research and development
costs 0.9 2.7 -66.7 3.7
Equity ratio 67.2 57.2 69.8
Gearing, % -17.1 6.5 -15.2
Interest-bearing net debt -16.5 5.8 -384.3 -17.9
Interest-bearing
liabilities 4.6 19.1 -75.9 6.8
Non-interest -bearing
liabilities 54.9 59.3 -7.4 56.2
Average no. of personnel,
calculated as full-time
employees, excl. delivery
staff 1,777 1,959 -9.3 1,888 1,981 -4.7 1,971
Average no. of delivery
staff 894 910 -1.8 969 968 0.0 962
Earnings/share, EUR (basic) 0.12 0.12 -2.3 0.39 0.51 -24.0 0.68
Earnings/share, EUR
(diluted) 0.12 0.12 -2.4 0.39 0.51 -24.1 0.68
Cash flow from operating
activities, EUR 0.14 0.11 22.6 0.58 0.63 -8.0 0.70
Shareholders' equity/share,
EUR 1.28 1.18 1.58
Dividend per share 0.40 0.30 0.90
Dividend yield 5.3 6.1 7.7
P/E Ratio 19.1 9.6 17.2
Market capitalization 558.1 369.3 51.1 870.7
Average no. of shares
(1,000 shares)
- basic 74,613 74,613 74,613 74,613 74,613
- diluted 74,859 74,859 74,859 74,764 74,773
No. of shares at end of
period (1,000 shares) 74,613 74,613 74,613
--------------------------------------------------------------------------------
* See Main Accounting Principles (IFRS) of Financial Statements Release
NET SALES AND OPERATING PROFIT/LOSS BY SEGMENT
NET SALES BY SEGMENT, MEUR 2009 2008 Change 2009 2008 Change
Q4 Q4 % Q1-Q4 Q1-Q4 %
------------------------------------------------------------------------------
Newspapers
External 56.2 59.9 216.9 232.2
Inter-segments 1.1 1.3 4.4 4.5
Newspapers total 57.3 61.1 -6.2 221.3 236.7 -6.5
Kauppalehti Group
External 15.9 19.0 62.5 73.4
Inter-segments -0.1 0.1 0.3 0.1
Kauppalehti Group total 15.8 19.0 -16.6 62.8 73.5 -14.5
Marketplaces
External 6.5 7.4 27.0 34.0
Inter-segments 0.0 0.1 0.0 0.3
Marketplace total 6.5 7.5 -12.7 27.0 34.3 -21.3
Others
External 0.3 0.3 1.4 1.6
Inter-segments 3.5 3.8 14.5 13.5
Others total 3.8 4.2 -8.2 15.9 15.1 5.4
Elimination -4.5 -5.2 -19.2 -18.4
------------------------------------------------------------------------------
Total 79.0 86.6 -8.8 307.8 341.2 -9.8
------------------------------------------------------------------------------
2009 2008 Change 2009 2008 Change
OPERATING PROFIT/LOSS BY SEGMENT, MEUR * Q4 Q4 % Q1-Q4 Q1-Q4 %
------------------------------------------------------------------------------
Newspapers 10.5 10.5 -0.4 37.3 41.5 -10.3
Kauppalehti Group 2.3 2.0 15.0 6.7 9.7 -30.8
Marketplaces -0.3 -1.0 71.1 -.7 2.0 -133.1
Other operations -0.7 -2.0 65.3 -1.9 -4.9 62.3
------------------------------------------------------------------------------
Total 11.8 9.5 25.1 41.4 48.3 -14.2
------------------------------------------------------------------------------
*) incl. one-time items
NEWSPAPERS 2009 2008 Change 2009 2008 Change
Key figures, MEUR Q4 Q4 % Q1-Q4 Q1-Q4 %
--------------------------------------------------------------------------------
Net sales 57.3 61.1 -6.2 221.3 236.7 -6.5
Circulation sales 27.2 27.1 0.4 109.9 108.6 1.1
Media advertising sales 27.4 31.3 -12.3 101.3 117.7 -14.0
Other sales 2.7 2.7 0.3 10.2 10.4 -2.3
Operating profit 10.5 10.5 -0.4 37.3 41.5 -10.3
Operating profit, % 18.3 17.2 16.8 17.5
Operating profit without
one-time items 10.3 10.5 -2.2 38.4 41.5 -7.7
Operating profit without
one-time items, % 17.9 17.2 17.3 17.5
Average no. of
personnel, calculated as
full-time employeesexcl.
delivery staff 1,084 1,169 -7 1,149 1,197 -4
Average no. of delivery
staff 894 910 -2 969 968 0
Operational key figures 2009 2008 2009 2008
Audited circulation Q4 Q4 Q1-Q4 Q1-Q4
--------------------------------------------------------------------------------
Iltalehti 122,548
Aamulehti 139,130
Online services, unique
visitors, weekly
Iltalehti.fi 1,945,453 1,610,952 1,762,615 1,412,534
Telkku.com 603,000 542,121 580,989 515,939
Aamulehti.fi 254,726 171,699 207,978 147,048
The Newspapers segment reports the publishing activities of 35 newspapers. The
largest titles are Aamulehti and Iltalehti.
The Newspapers segment's net sales in 2009 decreased 6.5% from the previous year
to MEUR 221.3 (236.7). During the year, the quarterly growth rates of the
newspapers' net sales experienced significant fluctuation due to the market
conditions. The advertising sales of Alma Media newspapers decreased
significantly in 2009, the full-year total being MEUR 101.3 (117.7). In
November-December, online advertising sales grew slightly from the comparison
period. Aamulehti and Iltalehti suffered most from the marked advertising market
decline in the beginning of the year. For the smaller regional and local papers,
the market decline had a delayed effect, becoming evident during the second
half-year. Online advertising sales grew for Iltalehti, whose online service
Iltalehti.fi was the largest Finnish online medium with its approximately two
million average unique visitors per week at the end of the year.
Circulation net sales for the newspapers grew during the year thanks to price
increases. For regional and local newspapers, circulation development declined
slightly, partly due to cutbacks in free circulation. The single-copy sales of
Iltalehti decreased approximately 6.1%, circulation by approximately 7.8%, while
the entire afternoon paper market dropped by approximately 6.1%. Iltalehti
retained its market share at the previous year's level, at 42.9% (42.9%).
The full-year operating profit for the Newspapers segment declined to MEUR 37.3
(41.5). The operating profit for the segment without one-time items declined to
MEUR 38.4 (41.5).
KAUPPALEHTI GROUP 2009 2008 Change 2009 2008 Change
Key figures, MEUR Q4 Q4 % Q1-Q4 Q1-Q4 %
--------------------------------------------------------------------------------
Net sales 15.8 19.0 -16.6 62.8 73.5 -14.5
Circulation sales 6.1 6.5 -5.4 23.5 24.8 -5.4
Media advertising sales 5.0 5.9 -15.4 16.3 22.2 -26.4
Other sales 4.7 6.6 -28.4 23.0 26.4 -13.2
Operating profit 2.3 2.0 15.0 6.7 9.7 -30.8
Operating margin, % 14.8 10.7 10.7 13.2
Operating profit without
one-time items 2.0 2.0 -2.9 6.7 9.7 -30.8
Operating margin without
one-time items, % 12.5 10.8 10.7 13.2
Average no. of personnel,
calculated as full-time
employees 453 494 -8 477 499 -4
2009 2008 2009 2008
Operational key figures Q4 Q4 Q1-Q4 Q1-Q4
-----------------------------------------------
Audited circulation
Kauppalehti 86,654
Online services, unique
visitors, weekly
Kauppalehti.fi 589,293 484,056 544,533 391,453
The Kauppalehti Group specialises in producing business and financial
information. Its best known title is Finland's leading business paper
Kauppalehti. The group also includes the contract publishing company Alma Media
Lehdentekijät and the news agency BNS operating in the Baltic countries. On
October 1, 2009, Alma Media sold the entire stock of the direct marketing
company Kauppalehti 121 Oy. In the 2009 financial statements, the net sales
reported for the sold Kauppalehti 121 Oy is MEUR 6.6 and operating profit MEUR
0.4.
The net sales of the Kauppalehti Group declined by 14.5% in 2009, being MEUR
62.8 (73.5). The most important reason for the decline was the group's
advertising sales development during the year, down 26.4%. Online advertising
sales remained at the previous year's level, and online content sales increased
from the comparison period. Circulation net sales declined by 5.4% to MEUR 23.5
(24.8) due to the declining sales of the Lehdentekijät business division. In a
fiercely competitive situation, Lehdentekijät, however, managed to increase its
profitability.
Kauppalehti's circulation reached a record level in 2009, 86,654 copies. Its
free distribution to associations has been cut down as part of Kauppalehti Oy's
cost saving measures. This will decrease the audited circulation of Kauppalehti
in the 2010 audit, while paid circulation will further increase from the 2009
level.
Kauppalehti continued to increase its readership in the early part of 2009.
According to the 2009 National Readership Survey, Kauppalehti's readers numbered
230,000 (+7%) and Kauppalehti Optio's 229,000 (+3%). Kauppalehti's readership
has enjoyed continuous growth since 2007. The changes in the circulation
structure due to cost saving measures are not expected to have a significant
effect on Kauppalehti's readership.
The number of visitors to the online service Kauppalehti.fi grew remarkably
during the year, the average being 544,533 (391,453) unique visitors per week.
The full-year operating profit of the segment declined by MEUR 3.0 to MEUR 6.7
(9.7). The operating profit without one-time items declined to MEUR 6.7 (9.7).
The operating profit of the segment for the fourth quarter includes a one-time
gain of MEUR 0.4, generated by the sale of business operations.
MARKETPLACES 2009 2008 Change 2009 2008 Change
Key figures, MEUR Q4 Q4 % Q1-Q4 Q1-Q4 %
--------------------------------------------------------------------------------
Net sales 6.5 7.5 -12.7 27.0 34.3 -21.3
Operations in Finland 5.4 6.0 -10.3 22.4 28.0 -20.1
Operations outside Finland 1.1 1.5 -25.0 4.7 6.3 -26.0
Operating profit -0.3 -1.0 71.1 -0.7 2.0 -133.1
Operating margin, % -4.3 -13.0 -2.5 5.9
Operating profit without
one-time items -0.3 -1.0 70.2 -0.5 2.0 -127.2
Operating margin without
one-time items, % -4.5 -13.2 -2.0 5.9
Average no. of personnel,
calculated as full-time
employees 178 234 -24 200 216 -8
2009 2008 2009 2008
Operational key figures Q4 Q4 Q1-Q4 Q1-Q4
-----------------------------------------------
Online services, unique
visitors, weekly
Etuovi.com 355,748 313,269 354,826 321,176
Autotalli.com 93,525 88,412 96,872 91,744
Monster.fi 76,109 62,966 74,473 65,585
Mikko.fi 70,798 70,723 76,854 47,915
Mascus.com (Finland) 168,960 106,898 135,272 80,679
City24 197,489 283,694 232,640 265,516
The Marketplaces segment reports Alma Media's classified services produced on
the internet and supported by printed products. The services in Finland are
Etuovi.com, Monster.fi, Autotalli.com, Mascus.fi and Mikko.fi. The services
outside Finland are City24, Mascus and Bovision.
Net sales for Marketplaces declined by 21.3% in 2009 to MEUR 27.0 (34.3). The
slowdown in home advertising in Finland and the Baltic countries, as well as the
sharp drop in recruitment advertising in Finland kept net sales development
negative during the entire year 2009. Marketplaces' Finnish services, however,
increased their market shares in 2009.
The full-year operating profit of Marketplaces declined from MEUR 2.0 to a loss
of MEUR 0.7. The operating loss without one-time items was MEUR 0.5 (operating
profit of MEUR 2.0).
Based on impairment testing, Alma Media booked a depreciation of MEUR 1.0 in
financial year 2009. The depreciation is related with the City24 business unit
in the home sales business of the Marketplaces segment.
With its decision of October 16, 2008, the District Court of Helsinki dismissed
all claims against Alma Media's use of the Etuovi.com trademark. Among other
things, the district court decision confirmed Alma Media's right to use the
trademark "ETUOVI.COM" for online home and real estate business and a special
newspaper focusing on real estate sales. The case will continue in the Court of
Appeal of Helsinki.
ASSOCIATED COMPANIES
Share of associated companies result, 2009 2008 2009 2008
MEUR Q4 Q4 Q1-Q4 Q1-Q4
-------------------------------------------------------------
Newspapers 0.0 0.0 0.1 0.1
KauppalehtiGroup
Talentum Oyj -0.3 0.6 -1.4 1.6
Marketplaces 0.0 0.0 0.0 0.0
Other operations
AP-Paino Oy 0.0 1.8 0.0 1.8
Other associated companies 0.4 0.2 0.9 0.9
-------------------------------------------------------------
Total 0.1 2.6 -0.3 4.5
Alma Media Corporation purchased 375,000 Talentum Oyj shares in a deal on August
10, 2009. After the purchase, Alma Media Group held a 30.65% 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. As
the holding of Alma Media Group in Talentum Oyj exceeded three-tenths (3/10),
Alma Media was obliged to make a mandatory tender offer for all of Talentum
Oyj's shares as stipulated in the Securities Markets Act.
Alma Media Corporation on August 10, 2009 announced that it will make a
mandatory tender offer for all of the issued and outstanding shares in Talentum
Oyj. The offer period commenced on August 19, 2009 and ended on November
16, 2009 in accordance with its terms and conditions. The cash consideration
offered was EUR 1.85 per share. According to the final result of the tender
offer, a total of 661,295 Talentum shares representing approximately 1.49% of
all votes in Talentum were tendered to Alma Media. Taking the tendered shares
into account, Alma Media Group's holding in Talentum rose to 14,236,295 shares,
representing approximately 32.14% of all votes in Talentum and 32.64% of votes
when taking into account 681,000 shares held by Talentum which do not carry a
voting right.
On the date of the financial statements, Alma Media Group's holding in Talentum
Oyj, reported under the Kauppalehti Group, totals 32.14%. The own shares held by
Talentum itself are here included in the total number of shares. In the
consolidated financial statements of Alma Media the ownership in Talentum is
combined in a way that does not take Talentum's own shares into account in the
total number of shares. Alma Media's shareholding in Talentum was stated as
32.64% in its consolidated financial statements of December 31, 2009.
The Group sold its ownership in AP-Paino Oy in December 2008.
BALANCE SHEET AND FINANCIAL POSITION
The consolidated balance sheet at the end of December 2009 stood at MEUR 155.5
(166.9). The Group's equity ratio at the end of December was 67.2% (57.2%) and
equity per share was EUR 1.28 (1.18).
The consolidated cash flow before financing was MEUR 43.8 (45.8). At the end of
December the Group's net debt totalled MEUR -16.5 (5.8).
The Group has a current MEUR 100.0 commercial paper programme in Finland. During
2009, the Group used the commercial paper programme to finance the payment of
dividends. The unused part of the programme was MEUR 100.0 (87.0) on December
31, 2009. In addition, Alma Media made a two-year credit limit agreement for
MEUR 50.0 with Nordea Bank Finland in the third quarter. On the date of the
financial statements, MEUR 50.0 of the limit are unused.
The Group's interest-bearing debt is denominated in euros and therefore does not
require hedging against exchange rate differences. The most significant
purchasing contracts denominated in foreign currency are hedged.
RESEARCH AND DEVELOPMENT COSTS
Research and development costs in 2009 amounted to MEUR 0.9 (MEUR 2.7 in 2008
and MEUR 3.7 in 2007). Of this total, MEUR 0.5 (MEUR 2.3 in 2008 and MEUR 2.8 in
2007) were capitalised and MEUR 0.5 (MEUR 0.3 in 2008 and MEUR 0.8 in 2007)
expensed. Most of the R&D development projects pertained to the development of
online business.
CAPITAL EXPENDITURE
Gross capital expenditure in 2009 totalled MEUR 8.2 (14.5), consisting mainly of
acquisitions of business operations and development projects for online media.
The rest of the capital expenditure related to normal operation and maintenance
investments. In December, the Group announced that it will start preparing for
an investment in printing facilities. This investment project is expected to
take place in 2010-2012 and be valued at MEUR 30-50.
EVENTS AFTER THE FINANCIAL PERIOD
On January 8, 2010, Alma Media published a press release about its plan to
establish a joint venture with Grey-Hen Oy and Kateetti Oy for developing and
maintaining auto industry application solutions. According to the press release,
the joint venture will commence operations during spring 2010.
ADMINISTRATION
Alma Media Corporation's annual general meeting on March 11, 2009 elected Lauri
Helve, Matti Kavetvuo, Kai Seikku, Erkki Solja, Kari Stadigh, Harri Suutari,
Catharina Stackelberg-Hammarén and Seppo Paatelainen to the Board of Directors.
At the constitutive meeting of the Board held after the annual general meeting,
the Board 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 were elected
members of the Audit Committee. Kari Stadigh, Seppo Paatelainen and Lauri Helve
were elected members of the Nomination and Compensation Committee.
The annual general meeting appointed Ernst&Young Oy as the company's auditors.
Alma Media Corporation applies the Finnish Corporate Governance Code for listed
companies, issued by the Securities Market Association on October 20, 2008, in
its unaltered form. The statement on the company's administration and control
system, as required by Recommendation 51 of the Code, is published separately.
Oy Herttaässä Ab, which holds more than 10% of Alma Media shares, proposed to
the annual general meeting that a special audit be conducted on the
administration and accounting of Alma Media for the financial periods
2006, 2007 and 2008, as well as theending financial period 2009. The annual
general meeting considered the proposal and it was included in the minutes of
the meeting. The application for a special audit must be made within one month
of the annual general meeting. The State Provincial Office of Helsinki has
confirmed to Alma Media that it did not receive an application for special audit
on Alma Media Corporation within the stipulated period.
RISKS AND RISK MANAGEMENT
The purpose of Alma Media'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. Written limits and processing
methods are set for quantitative and qualitative risks by the corporate risk
management system.
The most important strategic risks for Alma Media are a significant drop in the
readership of its newspapers, a decline in advertising sales and a significant
increase in distribution costs. Fluctuating economic cycles are reflected on the
development of advertising sales, which accounts for approximately half of the
Group's net sales. Developing businesses outside Finland, such as the Baltic
countries and other East European countries, include country-specific risks
relating to the development of the market and economic growth.
In the long term, the media business will undergo changes along with the changes
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.
PERSONNEL
During 2009, the average number of Alma Media employees, calculated as full-time
employees (excluding deliverers), was 1,888 (1,981). The average number of
delivery staff totalled 969 (968).
THE ALMA MEDIA SHARE
During January-December 2009, a total of 38.3 million Alma Media shares were
traded on the NASDAQ OMX Helsinki Stock Exchange, representing 51.3% of the
total number of shares. The closing price for the share on December 31, 2009 was
EUR 7.48. During the year, the lowest price paid for the share was EUR 4.50 and
the highest EUR 8.94. The company's market capitalisation at the end of December
was MEUR 558.1.
In March 2009, Alma Media paid a dividend of EUR 0.30 a share, in total MEUR
22.4.
On the date of the financial statements, the company does not own any of its own
shares. The ordinary annual general meeting on March 11, 2009 decided to
authorise the Board of Directors to repurchase 3,730,600 (approximately 5%) of
the company's own shares. The authorisation is valid until the closing of the
following ordinary annual general meeting.
OPTION RIGHTS
Option programme 2006
The annual general meeting held on March 8, 2006 decided on a new 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 shares with a
book countervalue of EUR 0.60 per share. The programme is part of the company's
management incentive and commitment system. Of the total number of options,
640,000 were marked 2006A, 640,000 were marked 2006B and 640,000 were marked
2006C.
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 authorised 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. After
the returned options, corporate management possesses a total of 440,000 2006A
options. In 2007 and 2008, Alma Media's Board of Directors decided to annul the
200,000 2006A option rights in the company's possession. The share subscription
price under the A options, EUR 7.66 per share, was determined by the trade
weighted average share price in public trading between April 1 and May
31, 2006. The subscription price of the 2006A options was reduced by the amount
of capital repayment in 2006 (EUR 0.53 per share), by dividend payment in March2007 (EUR 0.65 per share), by dividend payment in March 2008 (EUR 0.90 per
share) and by dividend payment in March 2009 (EUR 0.30 per share) to 5.28 per
share. The vesting period for the 2006A options has ended and the share
subscription period began on April 1, 2008. No shares have been subscribed to by
December 31, 2009.
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) and by dividend payment in March 2009 (EUR 0.30 per share) to
EUR 8.65 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 December 31, 2009.
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. All of the 170,000 2006C option rights in
the company's possession have been annulled.
If all the subscription rights were exercised, this programme would dilute the
holdings of the earlier shareholders by 1.8%.
The stock option plan is entered in the accounts in accordance with the standard
IFRS 2 - Share-Based Payments. The option rights granted are measured at their
fair value on the grant date using the Forward Start Option Rubinstein (1990)
model based on the Black&Scholes pricing model and expensed in the income
statement under personnel expenses over the vesting period. An expense of MEUR
0.5 was entered in the 2009 accounts (MEUR 0.8 in 2008). The expected volatility
has been determined by calculating the historical volatility of the company's
share price, which includes the volatility of the listed shares of the so-called
previous Alma Media Corporation.
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, 710,000 were marked 2009B and 710,000 were marked 2009C.
Share subscription periods and subscription prices:
2009A April 1, 2012-March 31, 2014, trade-weighted average share price April
1-30, 2009
2009B April 1, 2013-March 31, 2015, trade-weighted average share price April
1-30, 2010 and
2009C April 1, 2014-March 31, 2016, trade-weighted average share price April
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. The
company is in possession of 70,000 2009A options. The subscription price of a
2009A option is EUR 5.21 per share. 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. If all the subscription
rights are exercised, the programme will dilute the holdings of the earlier
shareholders by 2.8%.
The stock option plan is entered in the accounts in accordance with the standard
IFRS 2 - Share-Based Payments. The option rights granted are measured at their
fair value on the grant date using the Forward Start Option Rubinstein (1990)
model based on the Black&Scholes pricing model and expensed in the income
statement under personnel expenses over the vesting period. An expense of MEUR
0.2 was entered in the 2009 accounts. The expected volatility has been
determined by calculating the historical volatility of the company's share
price, which includes the volatility of the listed shares of the so-called
previous Alma Media Corporation.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
Alma Media Corporation and eQ Pankki Oy had a liquidity guarantee contract for
the Alma Media share until October 22, 2009. After this date, the Alma Media
share has not had a market guarantee in effect.
FLAGGING NOTICES
In 2009, Alma Media received the following notices of changes in shareholdings
pursuant to Chapter 2, Section 9 of the Securities Markets Act:
On February 27, 2009, Alma Media received information to the effect that the
holding of Danske Bank A/S Helsinki Branch (business ID 1078693-2) in the share
capital and voting rights of Alma Media Corporation had fallen below the
flagging limit of 1/20 (5%) to zero due to a transaction conducted on February
26, 2009.
On February 27, 2009, Alma Media received information to the effect that
Skadinaviska Enskilda Banken AB (publ) currently holds 11,958,000 Alma Media
shares, representing 16% of share capital and voting rights. Skandinaviska
Enskilda Banken announced it entered into a share transaction in order to hedge
a transaction exposure expiring March 20, 2009 in an equal amount.
On March 31, 2009, in accordance with the notice Alma Media received from Oy
Herttaässä Ab (business ID 0761658-8), the forward contracts Oy Herttaässä Ab
flagged on June 6, 2008 and that matured on March 20, 2009 have not been
converted into Alma Media shares. Thus, the holding of Oy Herttaässä Ab in Alma
Media Corporation remains unchanged.
On July 2, 2009, Alma Media received flagging notices from Skandinaviska
Enskilda Banken, Ilkka-Yhtymä Oy and Kaleva Kustannus Oy. According to the
notices, Skandinaviska Enskilda Banken AB (publ) Helsinki Branch intended to
sell an aggregate of 11,958,000 Alma Media shares to Ilkka-Yhtymä Oy and Kaleva
Kustannus Oy.
On August 10, 2009, Skandinaviska Enskilda Banken AB (publ) Helsinki Branch
notified that it had sold 11,958,000 Alma Media shares. With the completed deal,
the holding of Skandinaviska Enskilda Banken AB (publ) Helsinki Branch in the
shares and voting rights of Alma Media Corporation falls below the flagging
limit of 1/20 and becomes zero.
According to a notification by Ilkka-Yhtymä Oyj (business ID 0182140-9), the
company purchased an aggregate of 7,500,000 Alma Media shares on August
10, 2009. With the deal, Ilkka-Yhtymä Oyj's holding in Alma Media Corporation's
shares and voting rights exceeds the flagging limit of 1/5, being 20.40% (a
total of 15,218,991 shares and votes).
According to a notification by Kaleva Kustannus Oy (business ID 0187274-0), the
company purchased an aggregate of 4,458,000 Alma Media shares on August
10, 2009. With the deal, Kaleva Kustannus Oy's holding in Alma Media Corporation
exceeds the flagging limit of 1/20, being 5.97% (a total of 4,458,000 shares and
votes).
ENVIRONMENTAL IMPACTS
The most significant environmental impacts from Alma Media's business operations
consist of paper and energy consumption and traffic emissions. The companymainly uses newsprint in its newspaper products; the consumption of this in
2009 was approximately 30,000 (36,000) tonnes. In 2009, the company used 17,502
(18,632) MWh of electricity. The carbon dioxide emissions from printing and
distribution arise mainly from traffic.
DIVIDEND PROPOSAL
Alma Media's Board of Directors will propose to the annual general meeting
convening on March 11, 2010 that a dividend of EUR 0.40 (0.30) per share be paid
for the 2009 financial year. 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 1, 2010. The payment date is March
25, 2010. On December 31, 2009, the Group's parent company had distributable
funds totalling EUR 53,724,934 (50,107,510).
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
18, 2010.
2009 2008 Change 2009 2008 Change
INCOME STATEMENT, MEUR Q4 Q4 % Q1-Q4 Q1-Q4 %
--------------------------------------------------------------------------------
NET SALES 79.0 86.6 -8.8 307.8 341.2 -9.8
Other operating income 0.7 0.9 -17.4 0.9 1.7 -46.7
Materials and services -23.1 -25.5 9.3 -93.1 -102.0 8.7
Costs arising from employment
benefits -29.1 -32.0 9.1 -112.3 -119.0 5.6
Depreciation and writedowns -2.3 -2.4 4.3 -8.9 -8.8 -0.8
Operating expenses -13.4 -18.2 26.3 -53.0 -64.9 18.4
--------------------------------------------------------------------------------
OPERATING PROFIT 11.8 9.5 25.0 41.4 48.3 -14.2
Financial income 0.1 0.2 -41.6 0.6 1.2 -45.7
Financial expenses -0.3 -0.6 46.4 -1.0 -1.6 37.3
Share of associated companies'
results 0.1 2.6 -96.5 -0.3 4.5 -107.1
--------------------------------------------------------------------------------
PROFIT BEFORE TAX 11.9 11.7 1.7 40.8 52.4 -22.2
--------------------------------------------------------------------------------
Income tax -3.1 -2.8 -11.3 -11.4 -13.4 14.7
--------------------------------------------------------------------------------
PROFIT FOR THE PERIOD 8.8 8.9 -1.3 29.3 39.0 -24.7
--------------------------------------------------------------------------------
OTHER COMPREHENSIVE INCOME
Exchange difference on translation of
foreign operations 0.2 -0.8 0.5 -0.8
Share of associated companies' other
comprehensive income 0.0 -0.6 -0.4 -0.9
Income tax relating to components of
other comprehensive income 0.0 0.0 0.0 0.0
-----------------------------------------
Other comprehensive income for the
period, net of tax 0.2 -1.4 0.2 -1.7
--------------------------------------------------------------------------------
TOTALCOMPREHENSIVE INCOME FOR THE
PERIOD 9.0 7.5 19.9 29.5 37.2 -20.8
--------------------------------------------------------------------------------
Distribution of the profit for the
period:
To the parent company shareholders 8.7 8.9 29.2 38.4
Minority interest 0.1 0.0 0.1 0.6
Distribution of thecomprehensive
income for the period:
To the parent company shareholders 8.9 7.5 29.3 36.7
Minority interest 0.1 0.0 0.1 0.6
Earning/share calculated from the
profit for the period to the parent
company shareholders
Earnings/share, EUR 0.12 0.12 0.39 0.51
Earnings/share (diluted), EUR 0.12 0.12 0.39 0.51
31 Dec 31 Dec
BALANCE SHEET, MEUR 2009 2008
----------------------------------------------------
ASSETS
NON-CURRENT ASSETS 28.2 33.0
Intangible assets 10.4 12.3
Tangible assets 32.0 35.2
Investments in associated companies 30.5 31.6
Other financial assets 4.5 4.2
Deferred tax assets 0.7 1.3
CURRENT ASSETS
Inventories 1.5 1.5
Tax receivables 0.0 4.0
Accounts receivable and other 25.3 27.5
receivables
Other short-term financial assets 1.2 2.9
Cash and cash equivalents 21.1 13.3
ASSETS AVAILABLE FOR SALE 0.0 0.0
----------------------------------------------------
TOTAL ASSETS 155.5 166.9
31 Dec 31 Dec
BALANCE SHEET, MEUR 2009 2008
----------------------------------------------------
SHAREHOLDERS' EQUITY AND LIABILITIES
Share capital 44.8 44.8
Share premium fund 2.8 2.8
Cumulative translation adjustment -0.3 -0.8
Retained earnings 48.5 41.1
---------------
Parent company shareholders' equity 95.8 87.9
Minority interest 0.2 0.6
---------------
TOTAL SHAREHOLDERS' EQUITY 96.0 88.5
LIABILITIES
Non-currentliabilities
Interest-bearing liabilities 2.8 3.9
Deferred tax liabilities 2.5 2.5
Pension obligations 3.1 3.7
Provisions 0.1 0.1
Other long-term liabilities 0.4 0.5
Current liabilities
Interest-bearing liabilities 1.8 15.2
Advancesreceived 12.6 12.3
Tax liabilities 1.6 1.3
Provisions 1.0 1.0
Accounts payable and other
liabilities 33.7 37.9
---------------
TOTAL LIABILITIES 59.5 78.4
----------------------------------------------------
TOTAL EQUITY AND LIABILITIES 155.5 166.9
RECONCILIATION OF SHAREHOLDERS' EQUITY 1 January - 31December 2009
Share Share Translation Retained Parent Minority Equity
capital premium difference earnings company interest total
fund total
MEUR
--------------------------------------------------------------------------------
Equity, 1 Jan
2009 44.8 2.8 -0.8 41.1 87.9 0.6 88.5
--------------------------------------------------------------------------------
Dividend paid by
parent company -22.4 -22.4 -22.4
Dividends paid by
subsidiaries -0.6 -0.6
Share of
associated
companies' equity
items 0.2 0.2 0.2
Share-based
payments 0.7 0.7 0.7
Total
Comprehensive
income for
theperiod 0.5 28.9 29.4 0.1 29.5
--------------------------------------------------------------------------------
Equity, 31 Dec
2009 44.8 2.8 -0.3 48.5 95.8 0.2 96.0
RECONCILIATION OF SHAREHOLDERS' EQUITY 1 January - 31 December 2008
Share Share Translation Retained Parent Minority Equity capital premium difference earnings company interest total
fund total
MEUR
--------------------------------------------------------------------------------
Equity, 1 Jan 0.0
2008 44.8 2.8 70.0 117.7 0.6 118.3
--------------------------------------------------------------------------------
Dividend paid by
parent company -67.2 -67.2 -67.2
Dividends paid by
subsidiaries 0.0 -0.6 -0.6
Share of
associated
companies' equity
items 0.0 0.0 0.0
Share-based
payments 0.8 0.8 0.8
Total
Comprehensive
income for the
period -0.8 37.4 36.6 0.6 37.2
--------------------------------------------------------------------------------
Equity, 31 Dec
2008 44.8 2.8 -0.8 41.1 87.9 0.6 88.5
2009 2008 2009 2008
CASH FLOW STATEMENT, MEUR Q4 Q4 Q1-Q4 Q1-Q4
-----------------------------------------------------------
Cash flow from operating activities
Profit for the period 8.8 8.9 29.3 39.0
Adjustments 4.5 3.1 19.5 17.5
Change in working capital -1.8 1.0 -0.8 4.0
Dividendincome received 0.3 0.5 1.8 4.5
Interest income received 0.1 0.2 0.4 0.9
Interest expenses paid -0.2 -0.6 -1.0 -1.6
Taxes paid -1.1 -4.4 -6.2 -17.5
-----------------------
Net cash provided by operating
activities 10.5 8.6 43.1 46.9
Cash flow from investing activities
Investments in tangible
and intangible assets -1.2 -0.7 -4.2 -4.2
Proceeds from disposal of
tangible and intangible assets 0.0 0.0 0.0 1.0
Other investments 0.0 -0.3 0.0 -1.2
Proceeds from disposal of other
investments 0.4 0.7 2.0 0.8
Change in receivables 0.0 0.0 -0.1 0.0
Subsidiary shares purchased -0.8 -0.1 -0.8 -4.0
Associated company shares
purchased -1.4 0.0 -2.5
Proceeds from disposal of
subsidiary shares 6.2 6.2
Proceeds from disposal of
associated company shares 0.0 6.5 0.0 6.5
-----------------------
Net cash used in investing
activities 3.3 6.2 0.7 -1.0
Cash flow before financing
activities 13.8 14.7 43.9 45.8
Cash flow from financing activities
Long-term loan repayments 0.0 0.0 0.0 0.0
Short-term loans raised 0.0 0.0 17.8 35.0
Short-term loans repaid -7.4 -6.6 -32.7 -24.3
Change in interest-bearing
receivables -0.4 -0.2 1.7 0.0
Dividends paid and capital
repayment 0.0 0.0 -23.0 -67.8
-----------------------
-7.9 -6.8 -36.1 -57.1
Change in cash funds
(increase + / decrease -) 5.9 7.9 7.7 -11.2
Cash and cash equivalents at start
of period 15.1 5.6 13.3 24.8
Impact of change in foreign
exchange rates -0.1 -0.2 -0.1 -0.2
Cash and cash equivalents at end of
period 21.1 13.3 21.1 13.3
Net sales by geographical area, 2009 2008 2009 2008
MEUR Q4 Q4 Q1-Q4 Q1-Q4
-------------------------------------------------------
Finland 75.7 82.6 295.4 324.0
Rest of EU countries 3.1 3.8 11.9 16.7
Rest of other countries 0.2 0.2 0.5 0.6
-------------------------------------------------------
Total 79.0 86.6 307.8 341.2
-------------------------------------------------------
Acquired businesses in
2009
The Group acquired one company during
2009. These are listed by segment as
follows:
Acquisition % acquired
Business date
Kauppalehti Group
UAB BNS Newsventure Media monitoring October 1, 2009 100%
The following table presents the opening balance sheets of the acquired
operations in the Group, the total acquisition price and impact
on cash flow:
Fair values
Book values entered
before
Kauppalehti Group (MEUR) integration in integration
------------------------------------
Property, plant and
equipment 0.0 0.0
Intangible assets 0.0 0.0
Intangible assets,
trademarks
Intangible assets, customer agreements 0.5
Accounts receivable and other receivables 0.2 0.2
Cash and cash equivalents 0.2 0.2
------------------------------------
Assets, total 0.5 0.9
Deferred tax liabilities 0.1
Accounts payable and other
payables 0.2 0.2
------------------------------------
Liabilities, total 0.2 0.3
Net assets 0.2 0.6
Goodwill arising from
acquisition 0.3
Acquisition price (paid in
cash) 0.9
Cash and cash equivalents of acquired
subsidiaries or businesses 0.2
Impact on cash flow 0.7
The fair values entered on intangible assets in the integration relate primarily
to customer agreements. The goodwill arising from these acquisitions totalled M€
0.3. Contributory factors were the synergies related to these businesses
expected to be realized. The year's operating profit of the operations acquired
for the segment was M€ -0.1 from the acquisition date. Group net sales would
have been an estimated M€ 309.0 and the operating profit M€ 41.4, assuming the
acquisitions had taken place at the beginning of 2009.
In the case of the customer agreements, the fair values are based on the
estimated duration of the customer relationships and the discounted net cash
flows generated by existing customers.
Acquired businesses in
2008
The Group acquired four companies during 2008. These are listed by segment as
follows:
Acquisition % acquired
Business date
Newspapers
TV- program
information February
Jadecon Oy service 20, 2008 100%
Publishing rights
for town paper September
Rannikkoseutu Rannikkoseutu 1, 2008 100%
Vuodatus.net Oy Blog service October 1, 2008 100%
Publishing rights
for town paper December
Janakkalan Sanomat Janakkalan sanomat 31, 2009 100%
The following table presents the opening balance sheets of the acquired
operations in the Group, the total acquisition price and impact
on cash flow:
Fair values
Book values entered
before
Newspapers (MEUR) integration in integration
-----------------------------------
Property, plant and
equipment
Intangible assets 0.0 0.2
Intangible assets,
trademarks 1.0
Intangible assets, customer agreements 0.9
Accounts receivable and other receivables 0.2 0.2
Cash and cash equivalents 0.1 0.1
-----------------------------------
Assets, total 0.3 2.4
Deferred tax liabilities 0.6
Accounts payable and
other payables 0.1 0.1
-----------------------------------
Liabilities, total 0.1 0.6
Net assets 0.2 1.8
Goodwill arising from
acquisition 4.0
Acquisition price (paid
in cash) 5.8
Cash and cash equivalents of acquired
subsidiaries or businesses 0.1
Impact on cash flow 5.7
The fair values entered on intangible assets in the integration relate primarily
to trademarks and customer agreements. The goodwill arising from these
acquisitions totalled M€ 4.0. Contributory factors were the synergies related to
these businesses expected to be realized, and the possibility to expand business
operations into new markets. The year's operating profit of the operations
acquired for the segment was M€ 0.6 from the acquisition date. Net sales would
have been an estimated M€ 342.4 and the operating profit M€ 48.6, assuming the
acquisitions had taken place at the beginning of 2008.
In the case of the customer agreements,the fair values are based on the
estimated duration of the customer relationships and the discounted net cash
flows generated by existing customers. The fair value of the trademarks is based
on the estimated discounted royalty payments avoided by virtue of owning these
trademarks.
INFORMATION BY SEGMENT
Alma Media Group has three reporting segments, which are the Group's strategic
business units. The strategic business units produce a variety of products and
services, and they are managed as separate entities. The segment information
provided by the Group is based on internal management reporting. The primary
business segments to be reported within the Group are Newspapers, the
Kauppalehti Group and Marketplaces. The parent company's operations are reported
under Other Operations. The adoption of IFRS 8 has not brought about changes in
the reported operating segments, because the segment information provided by the
Group was already based on the Group's internal reporting structure.
The descriptive section of this bulletin presents the net sales and operating
profits of the segments and the allocation of the associated companies' results
to the reporting segments. Financial items and income taxes are handled as not
allocated to the segments. The segments' assets and liabilities are items used
by the respective segments in their business operations. Non-allocated items
mainly include tax and financial items.
The following table presents the assets and liabilities of the segments as well
as the non-allocated asset and liability items.
ASSETS BY SEGMENT, MEUR 31.12.2009 31.12.2008
----------------------------------------------------
Newspapers 65.3 67.5
Kauppalehti Group 41.3 52.3
Marketplaces 13.0 15.2
Other operations and 10.0 10.5
eliminations
Non-allocated assets 25.9 21.4
----------------------------------------------------
Total 155.5 166.9
----------------------------------------------------
LIABILITIES BY SEGMENT, MEUR 31.12.2009 31.12.2008
----------------------------------------------------
Newspapers 31.7 32.7
Kauppalehti Group 9.8 11.8
Marketplaces 3.5 4.2
Other operations and 5.8 6.8
eliminations
Non-allocated liabilities 8.7 22.9
----------------------------------------------------
Total 59.5 78.4
----------------------------------------------------
2009 2008 2009 2008
GROUP INVESTMENTS, MEUR Q4 Q4 Q1-Q4 Q1-Q4
-----------------------------------------------
Newspapers 0.8 1.3 3.2 9.4
Kauppalehti Group 1.9 0.3 3.5 1.4
Marketplaces 0.1 0.9 0.7 2.1
Others 0.2 0.4 0.7 1.6
-----------------------------------------------
Total 3.0 2.9 8.2 14.5
PROVISIONS
The Group's provisions at the end of 2009 totalled MEUR 1.1. The amount of
provisions has increased by MEUR 0.03 compared with the situation on December
31, 2008. The increase mainly comprises restructuring provisions. Decreases in
the provisions during the financial year are the result of actual costs.
Restructuring Other
provision provisions Total
------------------------------------
January 1, 2009 0.7 0.4 1.1
Increase in provisions 0.2 0.2
Provisions employed -0.2 -0.2
------------------------------------
December 31, 2009 0.9 0.2 1.1
Current 0.9 0.1 1.0
Non-current 0.0 0.1 0.1
Restructuring provision: this provision has been made to cover implemented or
possible personnel reductions in different companies. The provision is expected
to be realized in 2010.
Other provisions: mainly consists of the environmental provision for sold
property and other personel related provisions.
COMMITMENTS AND CONTINGENCIES, MEUR 31.12.2009 31.12.2008
--------------------------------------------------------------------------------
Collateral on own behalf
Chattel mortgages 0,0 0,0
Collateral for others
Guarantees 0.0
Other commitments
commitments based on agreements 0.1 0.1
Minimum rents payable based on other lease agreements:
Within one year 6.3 7.9
Within 1-5 years 15.2 19.1
After 5 years 19.9 27.9
--------------------------------------------------------------------------------
Total 41.4 54.9
The Group also has purchase agreements based on IFRIC 4
which include a lease component per IAS
17, Minimum payments based on these agreements: 0.4 3.1
GROUP DERIVATE CONTRACTS, MEUR 31.12.2009 31.12.2008
--------------------------------------------------------------------------------
Commondity derivate contracts, electricity
derivativies
Fair value * 0.0 -0.1
Nominal value 0.8 0.7
* The fair-value represents the return that would have
arisen if the derivative had been cleared on the balance
sheet date.
RELATED PARTY ACTIVITIES
Alma Media Group's related parties are its associated companies and the
companies they own. Related parties also include Group management (members of
the Board of Directors, CEOs and the Group Executive Team). Information about
changes to the option programme in effect, which forms the management's
incentive and commitment system, is presented in the section Option Rights under
the subhead The Alma Media Share.
2009 2008 2009 2008
RELATED PARTY ACTIVITIES WITH ASSOCIATED
COMPANIES, MEUR 10-12 10-12 1-12 1-12
------------------------------------------------------------------
Sales of goods aservices 0.1 0.0 0.2 0.2
Purchases of goods and services 0.9 1.2 3.7 4.5
Accounts receivable, loan and other 0.0 0.0
receivables at the balance sheet date
Accounts payable at the balance sheet date 0.1 0.1
MAIN ACCOUNTING PRINCIPLES (IFRS)
This bulletin has been prepared in accordance with IFRS standards (IAS 34).
The bulletin applies the same accounting principles and calculation methods as
in the previous annual accounts dated December 31, 2008. However, the financial
statements bulletin does not contain all the information or notes to the
accounts included in the annual financial statements. This interim report should
therefore be read in conjunction with the company's annual report.
The figures in both the financial statements bulletin and the financial
statements are independently rounded.
The 2009 and 2008 financial years are comparable. The company has no
discontinued operations to report in the 2008-2009 financial periods.
The key indicators are calculated using the same formulae as applied in the
previous annual financial statements. The quarterly percentages of Return on
Investment (ROI) and Return on Equity (ROE) have been annualised using the
formula ((1+quarterly return)4)-1).
The Group has applied the following accounting standards and interpretations
from January 1, 2009:
IAS 1 Presentation of Financial Statements (revised)
IFRS 7 Financial Instruments: Disclosures - Enhancement of Financial Instruments
Disclosures (amended)
IAS 23 Borrowing Costs (revised)
IFRS 2 Share-based Payment - Vesting Conditions and Cancellations (amendment),
Improvement to IFRSs, May 2008
IFRIC 12: Service Concession Arrangements
IFRIC 13: Customer Loyalty Programmes
IFRIC 15: Agreements for the Construction of Real Estate
IAS 1 Presentation of Financial Statements (amended)
IAS 32 Financial Instruments: Presentation - Puttable Instruments and
Obligations Arising on Liquidation (amended)
IFRIC 9 Reassessment of Embedded Derivatives (amended)
IAS 39 Financial Instruments: Recognition and Measurement - Embedded Derivatives
Assessment (amended)
IFRIC 16 Hedges of a Net Investment in a Foreign Operation
IFRS 8 Operating Segments
IAS 32 Financial Instruments: Presentation - Classification of Rights Issues
(amended, effective for financial periods commencing on February 1, 2010 or
thereafter)
The above new standards and interpretations will have only a minor effect on the
Group's income statement and balance sheet. Their application will mainly affect
the notes to the financial statements.
New accounting standards and interpretations to be adopted from January 1, 2010:
IFRS 3 Business Combinations (revised, originally published in 2008, effective
for financial periods starting July 1, 2009 or thereafter).
IAS 27 Consolidated and Separate Financial Statements (revised, originally
published in 2008, effective for financial periods starting July 1, 2009 or
thereafter).
IAS 39 Financial Instruments: Recognition and Measurement - Eligible Hedged
Items (amended, effective for financial periods starting July 1, 2009 or
thereafter).
IFRIC 17 Distributions of Non-cash Assets to Owners (effective for financial
periods starting July 1, 2009 or thereafter).
IFRIC 18 Transfers of Assets from Customers (effective for financial periods
starting July 1, 2009 or thereafter).
Improvements to IFRSs (April 2009, effective mainly for financial periods
starting January 1, 2010 or thereafter).
IFRS 2 Share-based Payment - Group Cash-settled Share-based Payment Transactions
(amendment, effective for financial periods starting January 1, 2010 or
thereafter).
An EU-level approval of these standards as well as their revisions and
amendments is required before they are adopted by the Group.
The impact of the above new standards (with the exception of the amendments to
IFRS 3) and IFRIC interpretations on the Group is initially estimated to be
minor. The amendments to IFRS 3 will affect the accounting of future corporate
acquisitions, such as the treatment of minority interest, goodwill and costs
related to the acquisition. The amendment to IFRS 3 will not affect earlier
acquisitions.
The item Assets held for sale in the balance sheet of the previous financial
year includes a long-term receivable from the Group's associate company AP-Paino
Oy. Alma Media has no ownership in the company since December 2008.
The full-year figures in this financial statements bulletin are audited.
SEASONALITY
The Group recognises its circulation revenues as paid. For this reason
circulation revenues accrue inthe 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.
ALMA MEDIA CORPORATION
Board of Directors
[HUG#1383830]
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