2007-10-25 07:30:00 CEST
2007-10-25 07:30:00 CEST
REGULATED INFORMATION
Satama Interactive - Quarterly report
SATAMA INTERACTIVE GROUP'S INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2007
Satama and Trainers' House Merge. Satama's Growth Continued.
-In the period under review, Satama's net sales grew by 12.9% in comparison
with the previous year. Net sales amounted to EUR 27.2 million (EUR 24.1
million).
-Operating profit increased by EUR 2.4 million from the previous year's
comparative figure, amounting to EUR 1.9 million, 6.9% of net sales (EUR -0.5
million, -2.2%). The financial result for the previous year includes
non-recurring expenses related to the restructuring programme in the amount of
EUR 1.2 million. Excluding the provision, Satama's operating profit increased by
EUR 1.2 million in the period under review in comparison with the previous year.
-In Q3/2007, Satama's net sales grew by 9.8% in comparison with the previous
year. Net sales amounted to EUR 7.8 million (EUR 7.1 million). Satama's
operating profit was EUR 0.4 million, or 5.2% of net sales (EUR 0.4 million,
5.3%).
-At the end of the period under review, the equity-to-assets ratio was 77.2%
(76.3%).
-In Q3/2007, Satama, Trainers' House and the shareholders of Trainers' House Oy
signed a Combination Agreement. Trainers' House will merge into Satama
approximately by the end of the year 2007.
Financial information for 2006 has been adjusted to comply with the new
accounting principles applied to media services, as explained below.
CEO Jarmo Lönnfors on the interim report:
“The most important event in Q3/2007 for Satama, which celebrated its 10th
anniversary on 1 October 2007, was the signing of the Combination Agreement with
Trainers' House. Good cooperation between the two companies over the past year
created a solid foundation for the merger, which is both strategically and
financially beneficial for both parties.
The merger enables both companies to pursue their strategic goals more
efficiently. Trainers' House needs tools supplementing its training services to
support the growth of its customers, and Satama is seeking continuous services
to complement the company's project services. By joining forces we are better
able to offer growth management services to the customers of both companies.
The first such service is BLARP, a business-critical growth management system
ready for delivery in Q4/2007. There has been great interest in the service. At
the beginning of Q4/2007, we secured the first order for the service, and the
number of sales projects is increasing rapidly.
During Q3/2007, Satama's management invested a great deal of effort in the
merger with Trainers' House. This work will continue over the next few months,
because the merger and the related integration of operations will require a
considerable amount of work in both organisations.
Partly due to the merger, Satama's net sales in the seasonally slow third
quarter did not develop quite as planned. This was also caused by the
investments made in the company's future. To accelerate service development,
Satama allocated a team of experts solely to the development of the BLARP
service. As a result, the output of this team was excluded from the invoicing of
Q3/2007. Net sales for the quarter increased in comparison with the previous
year, but the operating profit improved only slightly. Nevertheless, Satama's
profitability in the period under review was considerably higher than in the
previous year.
I am confident that the merger of Satama and Trainers' House is an excellent
alliance also for our investors. The new company will be a listed company with a
strong cash flow, high profitability and a clear strategy for ensuring future
growth. I am pleased that our investors appear to share this view. Interest in
Satama's shares has increased and our share price has strengthened considerably
since the publication of the Combination Agreement.”
For more information, please contact:
Tuomas Airisto, VP, Business Development, at +358 (0)207 581 505
Martti Ojala, CFO, at +358 (0)207 581 637
Press conference:
Satama will organise a press and analyst conference regarding the interim report
on 25 October, 12 noon - 1 pm, at Satama's head office, Henry Fordin katu 6,
Helsinki. Those wishing to participate should contact Nina Pakalen (tel. +358
(0)40 772 3415, e-mail: nina.pakalen@satama.com).
SATAMA INTERACTIVE GROUP'S INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2007
REVIEW OF OPERATIONS
Satama is a marketing technology services company. The company's strength lies
in combining marketing with information work expertise and technology. In the
period under review, Satama provided its services through offices located in
Helsinki, Tampere, Turku, Amsterdam, Düsseldorf and Stockholm.
In comparison with the previous year, Satama Group's net sales grew by 12.9%.
Net sales increased to EUR 27.2 million (EUR 24.1 million). The Group's
operating profit amounted to EUR 1.9 million, or 6.9% of net sales (EUR -0.5
million, -2.2% of net sales). Growth from the previous year amounted to EUR 2.4
million. Financial performance in 2006 was hampered by a non-recurring
restructuring provision of EUR 1.2 million. In the third quarter, the Group's
net sales amounted to EUR 7.8 million and the operating profit was EUR 0.4
million, 5.2% of net sales (net sales EUR 7.1 million, operating profit EUR 0.4
million, 5.3% of net sales).
In Finland (Satama Finland, Satama MST, Fimentor, and The Uncles), net sales
grew by 11.6%, coming to EUR 21.5 million (EUR 19.3 million). Practically all
growth was organic. In the third quarter, net sales totalled EUR 5.9 million, an
increase of 5.4% from the previous year, and the units were profitable.
Satama's international units (Satama Amsterdam and NeoMotion in Germany) grew by
14.1%. The growth was entirely organic. Net sales amounted to EUR 5.9 million
(EUR 5.2 million). The international units were profitable. In the third
quarter, net sales totalled EUR 1.9 million, an increase of 14.4% from the
previous year, and the units were profitable.
ACQUISITION OF TRAINERS'S HOUSE OY
On 28 August 2007, Satama Interactive Plc, Trainers' House Oy and all of the
shareholders of Trainers' House signed a Combination Agreement concerning the
planned combination of the two companies and share purchase agreements
concerning the purchase of shares in Trainers' House. The entire transaction is
conditional on the approvals and prerequisite decisions of the General Meetings
of both companies. Both companies will hold General Meetings on 5 November 2007.
The Boards of both Satama and Trainers' House see that the businesses of the two
companies complement one another. The objective of the merger is to establish a
strong company that utilises the business strengths of Satama and Trainers'
House and the synergy created by the merger. The new company will be better able
to serve its customers and to offer investors a bigger and more interesting
investment, thereby increasing the liquidity of the shares and the potential for
growth in share price.
Satama's shareholders and entities that hold forward trading contracts entitling
to Satama shares and who represent approximately 42.5% of the shares have
committed to approving the transaction in the Extraordinary General Meeting. If
the transaction is approved by the Extraordinary General Meetings of both
companies, the merger will be completed approximately by the end of the
financial year 2007. The transaction will be carried out in two phases as
follows:
-In the first phase Satama will purchase from the current shareholders of
Trainers' House approximately 45.0% of the shares in Trainers' House in a
transaction that will be closed promptly after the General Meetings of both
Satama and Trainers' House have approved the merger. The cash consideration is
approximately EUR 33.1 million. The share purchase will be financed with bank
loans.
-In the second phase, approximately at the end of the year 2007, Trainers'
House will be merged into Satama through an absorption merger and the current
shareholders of Trainers' House will receive 33,340,567 new Satama shares for
consideration of the remaining 55% of the shares in Trainers' House. Satama's
share capital will not be increased in connection with the merger. The increase
in Satama's shareholders' equity will be recorded in the distributable equity
fund. The new Satama shares will have shareholders' rights once the completion
of the merger has been registered.
According to the merger plan, amendments will be made to the articles of
association of Satama in connection with the completion of the merger. The
proposed amendments are summarised below:
-The trade name of the combined company would be Trainers' House Oyj, in
Swedish Trainers' House Abp and in English Trainers' House Plc; and
-The company would be engaged in providing sales, marketing and management
training to companies and corporations; in developing, producing, selling and
supplying information systems and sales, marketing and management services; in
developing, producing, selling, distributing, maintaining and subcontracting
digital and printed material related to the aforementioned products and
services; and in other business operations essentially related to training and
the development of digital services.
According to the merger plan, Mr. Kai Seikku will be appointed as a new member
of the Board of Directors of Satama once the completion of the merger has been
registered. At the same time Mr. Jari Sarasvuo resigns from the Board of
Directors and will be appointed as CEO of the combined company.
Satama's Board of Directors has set new financial objectives for the combined
company. The combined company will target 15% annual organic growth and 15%
operating profit, and will aim to pay 30-50% of its annual profit as a dividend.
THE RESULTS OF TRAINERS' HOUSE 30.9.2007
Trainers' House's financial statements according to Finnish Accounting Standards
(FAS) are presented in the stock exchange bulletin dated 29.8.2007. Comparable
FAS results from the third quarter are the following: Net sales EUR 2,9 million
(EUR 2,8 million), operating profit EUR 0,6 million (EUR 0,9 million), 18,9 % of
net sales (31 % of net sales). Operating profit includes EUR 0,3 million
Transaction related extraordinary expenses (In Satama these expenses are
included in the cost of the business combination and therefore not expensed).
FAS results from the period 1.1. -30.9.2007 are the following: Net sales EUR
12,8 million (EUR 10,5 million), growth from the comparable period of the
previous year 22,1 %; operating profit EUR 4,6 million (EUR 3,4 million), 35,9 %
of net sales (32,7 % of net sales). Comparable FAS results from the period 1.1.-
30.6.2007 are presented in the stock exchange bulletin published on 29.8.2007.
Due to differences in accounting standards, future financial expenses related to
the acquisition as well as the Transaction related amortizations of intangible
assets resulting from the IFRS purchase price allocations, it is not possible to
calculate neither income statement nor consolidated balance sheet of the
combined company based on the figures presented in this interim report. Pro
forma income statement (IFRS) as per 1.1. - 31.12.2006 as well as 1.1. -
30.6.2007 and consolidated Pro forma balance sheet as per 30.6.2007 are
presented in the prospectus, which will be published approximately 29.10.2007.
In the prospectus also a detailed Trainers' House FAS income statement from the
period 1.1. -30.9.2007 as well as the balance sheet per 30.9.2007 will be
presented.
More detailed information on the merger between Satama and Trainers' House can
be found on the Internet at www.satama.com, on Satama's stock exchange release
published on 29.8.2007 as well as on the prospectus which will be published
approximately on 29.10.2007.
MARKET REVIEW
No significant changes have taken place in the market since the release of the
previous interim report.
Satama's business operations are influenced in particular by the following
market trends: Increasing and diversifying use of the Internet for business and
entertainment, growth in mobile services, breakthrough of peer-to-peer networks
and social media, and the resulting shift of marketing investments from
traditional media to new channels. The change in consumer behaviour resulting
from the development of Internet services and the performance requirements in
information work are also important for Satama's future development.
Digital marketing is expected to grow significantly in the following years, and
the focus of marketing budgets is expected to shift increasingly towards digital
channels. For example Forrester Research expects search spending to grow by
about 80 % to EUR 8.1 billion and online display (banner) advertising to double
to EUR 5.6 billion in Europe by 2012.
Forrester expects the IT project business in Europe to grow by about 5.2% per
year by 2012. In Finland and the Netherlands, the growth is expected to be 6%
per year. We are also confident that the major investments made by Microsoft and
other system suppliers in new network platforms and user interface technologies
will encourage companies to make new investments in the coming years.
The European Information Technology Observatory (EITO) expects the number of
mobile phone subscribers in Europe to grow at 5.6% per year by 2010, with growth
in Eastern Europe amounting to 9.4% per year and in Western Europe to about 3%
per year. In the telecom sector, different types of fixed and mobile data
services are expected to be the fastest growing areas in Europe. In the
following years, the growing popularity of 3G mobile phones and new services
such as mobile television and IPTV are expected to shift the focus in the
telecom industry increasingly towards value-added services.
Sources: Forrester 2006-2007; EITO, 2007; Exane BNP Paribas & Arthur D Little,
2007.
STRATEGY AND BUSINESS OPERATIONS
Services provided by Satama today are organised into three complementary
business areas: Marketing, Productivity and Mobility.
The Marketing division offers services for the design, implementation and
continuous performance monitoring and analysis of marketing communications. A
typical delivery by the division is a digital marketing campaign aimed at the
launch of a new mobile phone model and at increased product sales.
The Productivity division designs and implements services that improve
productivity in the areas of sales management and marketing, business
intelligence, e-business and e-services, as well as portals and content
management. A typical delivery in this division is an electronic working
environment or a sales and service channel on the Internet. Microsoft
technologies form a key area of expertise for the Productivity division.
The Mobility division offers services that utilise the latest technology in
mobile channels in the areas of 1) marketing and activation campaigns, 2)
e-commerce and e-service solutions and 3) performance measurement and analysis.
A typical delivery by the division is a marketing and activation campaign
targeted at consumers to improve sales of services for 3G mobile phones.
Aiming for a new business model
The need to improve the performance of marketing, sales and information work
will also change Satama's operating model in the future. Our goal is for an
increasing proportion of Satama's net sales to be created by tools that improve
productivity, especially in sales and marketing, and to sell these tools to
customers as a continuous service. Developing such services requires strong
expertise in marketing, sales, sales management and technology.
The planned merger with Trainers' House provides good opportunities for
accelerating this development through greater size, stronger cash flow and
increased human resources.
CUSTOMERS
In the third quarter, Satama's net sales were divided between customer
industries as follows (percentage of net sales in the second quarter is given in
brackets):
- Telecommunications 57% (57%)
- Media 3% (6%)
- Tourism 1% (1%)
- Finance 8% (8%)
- Public administration 3% (2%)
- Others 28% (26%)
OUTLOOK FOR THE FUTURE
The market outlook for Satama's operational environment remains good.
Investments required for the merger of Satama and Trainers' House and the
investments in service development could possibly slow down growth in the short
term.
We have renewed the financial forecast for 2007 presented in our financial
statements bulletin, according to which we expected net sales and profit for the
2007 financial year to exceed the equivalent 2006 figures. We expect the net
sales of the current quarter to be slightly lower than in the comparable quarter
in 2006. We expect the operating profit to be positive.
Satama General Meeting to be held on 5.11.2007 will decide on the merger with
Trainers' House. If the transaction will be completed, Trainers' House will
after the General Meeting be an associated company of which Satama owns 45 per
cent. The entire purchase price of the shares will be paid using a bank loan.
Subsequently, the transaction will have an effect on Satama's balance sheet and
income statement during the fourth quarter. The implications of the transaction
will be described in more detail in the prospectus that will be published
approximately on 29.10.2007.
SHORT-TERM BUSINESS RISKS AND FACTORS OF UNCERTAINTY
Satama's operations focus on projects. In Satama's business areas, projects
typically involve short order books, the risk of poor profitability in
individual projects, and major fluctuations in the utilisation rate of human
resources between quarters. The market outlook presented above under ‘Outlook
for the Future' is based on forecasts by international analyst firms. With
respect to Satama's operations, the outlook is based on our current order book,
confirmed forecasts and experience of the purchasing cycles of our long-term
customers gathered over the years. The good market situation in the industry
poses a risk of growth in HR costs above the average development of wages.
It is uncertain whether the rising HR costs can be transferred to prices in the
short term.
REPORTING PRINCIPLES
Accounting principles for media services
Satama's service offering includes an increasing amount of media services
related to, for example, measurement and analytics, which are purchased from
external service providers. According to IFRS, such external services could in
Satama's case be recorded on a gross or net basis. As the portion of these
services in Satama's service offering is increasing, the company decided to
change the accounting principles for media services from gross to net basis as
of 1 January 2007. Under these principles, only the mark-up portion of media
services is included in net sales. The financial information for 2006 has been
adjusted to comply with the new accounting principles.
NET SALES AND PROFIT DEVELOPMENT
During the period under review, Satama's net sales increased by 12.9%, totalling
EUR 27.2 million (EUR 24.1 million). Operating profit (EBIT) was EUR 1.9 million
(EUR -0.5 million). Net profit for the period under review was EUR 1.4 million
(EUR -0.5 million).
In Finland (Satama Finland, Satama MST, Fimentor and The Uncles), net sales for
the period under review amounted to EUR 21.5 million (EUR 19.3 million), and the
business made a profit. Net sales of the international units (Satama Amsterdam
and NeoMotion in Germany) came to EUR 5.9 million (EUR 5.2 million), and the
business made a profit.
The following table itemises the Group's key figures (in thousands of euros):
1-9/2007 1-9/2006
Net sales 27,241 24,121
Expenses
Personnel-related
expenses -16,360 -15,493
Other expenses -8,322 -8,557
EBITDA 2,559 70
Depreciation -685 -611
EBIT 1,873 -540
% of net sales 6.9 -2.2
Financial income and
expenses 1 5
Profit/loss before tax 1,874 -536
Tax -511*) 73*)
Net profit/loss 1,363 -462
% of net sales 5.0 -1.9
*) The tax included in the income statement is deferred. The calculations are
based on the management's estimate of the weighted average annual income tax
rate.
The following table itemises net sales in terms of Group Satama Finland and the
subsidiaries operating abroad and shows the quarterly profits or losses from the
beginning of 2006 (in thousands of euros). In the table, net sales are adjusted
to comply with Satama's new accounting principles for media services, as adopted
on 1 January 2007.
Q106 Q206 Q306 Q406 2006 Q107 Q207 Q307
Finland 6,284 7,395 5,578 8,561 27,818 7,881 7,727 5,879
International 1,798 1,679 1,684 2,029 7,189 1,911 2,047 1,927
Eliminations -51 -61 -185 -169 -466 -60 -34 -37
Net sales total 8,031 9,013 7,076 10,421 34,542 9,732 9,741 7,769
Operating profit -244 -673 377 743 203 536 935 402
The change in the accounting principles applied to media services reduced the
net sales for Q3/2006 by EUR 198,000 and for the year 2006 by EUR 1,237,000.
FINANCING, SOLVENCY AND RISKS
At the end of the period, the Group's equity-to-assets ratio was 77.2% (76.3%)
and its liquid assets amounted to EUR 0.4 million (EUR 0.7 million). The Group
had EUR 0.6 million of interest-bearing debt (EUR 0.3 million). As Satama
operates primarily within the euro zone, there are no substantial exchange rate
fluctuation risks. A bad debt provision, which is booked on the basis of ageing
and case-specific risk analyses, covers risks to accounts receivable.
Cash flow from operating activities amounted to EUR 1.0 million and cash flow
from financing to EUR -1.5 million. EUR 0.9 million of the investments were made
primarily in IT hardware and software. Additional purchase prices related to
previous corporate acquisitions were paid in the amount of EUR 0.7 million.
AUTHORISATIONS BY THE BOARD OF DIRECTORS
The Annual General Meeting authorised the Board of Directors to decide on a
share issue, which may be either liable to charge or free of charge, including
issuing of new shares and the transfer of own shares possibly in the company's
possession.
Under the authorisation, the Board of Directors has a right to decide on an
issue of option rights and other special rights that entitle, against payment,
to receive new shares or shares possibly in the company's possession.
With these authorisations related to share issue and/or issue of special rights,
whether on one or on several occasions, a maximum of 8,000,000 new shares may be
issued and/or own shares possessed by the company may be transferred, which
corresponds to approximately 19.4% of the issued and outstanding shares of the
company.
The Board of Directors is otherwise authorised to decide on all terms regarding
the share issue and issue of special rights, including the right to also decide
on a directed share issue and a directed issue of special rights. Shareholders'
pre-emptive subscription rights can be deviated from, provided that there is
significant financial reason for the company to do so. The authorisation is,
however, not to be used for incentive schemes for the personnel.
The authorisations shall remain in force until 30 June 2008. The authorisations
had not been exercised on 30 September 2007.
The Annual General Meeting also authorised the Board of Directors to decide on
the repurchase of the company's own shares. The shares could be acquired for the
value decided by the Board of Directors, which value is based on the fair value
at the time of the acquisition as determined in public trading. Own shares may
be acquired only with free equity.
Under the authorisation, whether on one or on several occasions, a maximum of
4,000,000 own shares, which corresponds to approximately 9.7% of the issued and
outstanding shares of the company, may be acquired.
The Board of Directors is otherwise authorised to decide on all conditions
related to the acquisition of own shares, including the manner of acquisition of
shares. The authorisation does not exclude the right of the Board of Directors
to decide on a directed acquisition of own shares as well, if there is
significant financial reason for the company to do so.
The authorisation shall remain in force until 30 June 2008. The authorisation
had not been exercised on 30 September 2007.
PERSONNEL
The average number of personnel employed by Satama during the period under
review was 372 (373). At the end of the period under review, Satama employed 371
(337) people, of whom 310 (290) were employed in Finland and 61 (47) abroad.
INVESTMENTS
The Group's gross investments amounted to EUR 0.9 million (EUR 1.5 million),
representing 3.4% (6.4%) of net sales. The investments consisted primarily of IT
hardware and software acquisitions.
SHARES AND SHARE CAPITAL
At the end of the period under review, Satama Interactive Plc had issued
41,236,808 shares. The company's registered share capital amounted to EUR
866,941.67. Satama's share capital increased by a total of EUR 7,883.81 during
the period under review, as a result of subscriptions made on account of the
2003B warrants issued under the personnel's option programme. The total number
of new shares subscribed for was 375,000.
Satama Interactive's shares (SAI1V) have been listed on the Helsinki Stock
Exchange since 2000.
PERSONNEL OPTION PROGRAMMES
Satama Interactive has two option programmes for its personnel, included in the
personnel's commitment and incentive scheme.
The Annual General Meeting held on 26 March 2003 decided to commence an employee
option programme involving 2,000,000 warrants. Due to the resulting
subscriptions, Satama Interactive's share capital can rise by a maximum of EUR
42,046.98 and the number of shares by a maximum of 2,000,000. One million of the
warrants are titled 2003B and the other million 2003C. The subscription price
was EUR 0.36 per share and the subscription period for shares converted under
the 2003B warrants ended on 1 February 2007. The subscription period for shares
converted under the 2003C warrants runs from 1 February 2006 to 1 February 2008,
and the subscription price is EUR 1.11 per share.
The Annual General Meeting held on 29 March 2006 decided to commence an employee
option programme involving 2,000,000 warrants. Due to the resulting
subscriptions, the Satama Interactive share capital may increase by a maximum of
EUR 42,046.98 and the number of shares by a maximum of 2,000,000. Half of the
warrants are titled 2006A and the other half 2006B. The subscription period for
shares converted under the 2006A warrant is to begin on a date determined by the
Board of Directors after publication of the interim report for the second
quarter of 2008, but not later than on 1 September 2008, and to end on
28 February 2009. The subscription period for the shares converted under the
2006B warrant is to begin on a date determined by the Board of Directors after
publication of the interim report for the second quarter of 2009, but not later
than on 1 September 2009, and end on 28 February 2010.
The subscription price for shares converted under the 2006A warrant is EUR 1.02,
and for shares converted under the 2006B warrant EUR 1.17.
CHANGES IN OWNERSHIP
In the period under review, Satama became aware of 6 notices of change in
ownership exceeding the disclosure threshold. Information on notices of change
in ownership is available on the company's Website at www.satama.com. Ownership
of the company's shares is spread widely. On 30 September 2007, the largest
shareholder was Nordea Bank Finland Plc with 24.3% of the share capital.
- - -
The forecasts and estimates given in this report are based on the current views
of the management. Actual performance may differ from the projections.
- - -
NOTES REGARDING THE FIGURES
The financial statements bulletin was compiled in accordance with the revenue
recognition and valuation principles of the International Financial Reporting
Standards. Financial information for 2006 has been adjusted to comply with the
new accounting principles applied to media services as explained above. The
figures given in the interim report are unaudited.
Amendments to and interpretations of published standards, as well as the new
standards effective as of 1 January 2007 are presented in detail in the
Financial Statements for 2006. Adoption of the standards did not cause any such
impact on the accounting principles applied to the financial statements that
would have called for retroactive changes to previous years' figures.
In producing this interim report, Satama has applied the same accounting
principles for key figures as in its Financial Statements for 2006. The
calculation of key figures is described on page 76 of the Annual Report 2006.
The figures given in the interim report are unaudited.
INCOME STATEMENT, IFRS (kEUR)
Group Group Group Group Group
01.07.- 01.07.- 01.01.- 01.01.- 01.01.-
30.09.07 30.09.06 30.09.07 30.09.06 31.12.06
Net sales 7,769 7,076 27,241 24,121 34,542
Other operating income 3 67 11 164 175
Costs:
Materials and services 973 1,010 3,751 3,277 4,949
Personnel-related
expenses 4,750 4,175 16,360 15,493 21,609
Depreciation 249 191 685 611 814
Other operating expenses 1,397 1,390 4,582 5,444 7,141
Operating profit/loss 402 377 1,873 -540 203
Financial income and expenses -5 -11 1 3 13
Share from profit/loss of associated companies 2 2 -4
Profit/loss before tax 398 367 1,874 -536 212
Tax -123*) -98*) -511*) 73*) -129*)
Net profit/loss 275 270 1,363 -462 83
Attributable to equity holders
of the parent company 275 270 1,363 -462 83
Earnings per share as calculated from the profit
attributable to shareholders of the parent company:
Earnings/share,
undiluted (EUR) 0.01 0.01 0.03 -0.01 0.00
Earnings/share,
diluted (EUR) 0.01 0.01 0.03 -0.01 0.00
*) The tax included in the income statement is deferred.
BALANCE SHEET, IFRS (kEUR)
Group Group Group
30.09.07 30.09.06 31.12.06
ASSETS
Non-current assets
Tangible assets 1,460 1,592 1,591
Goodwill 10,047 9,187 9,953
Other intangible assets 419 77 148
Shares in associated companies 6
Other financial assets 1 42 43
Other receivables 101 155 160
Deferred tax receivables 5,190 5,917 5,689
Total non-current assets 17,218 16,976 17,583
Current assets
Accounts receivable and other receivables 12,539 9,574 12,150
Cash and cash equivalents 403 706 547
Total current assets 12,942 10,280 12,697
Total assets 30,159 27,255 30,280
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent company
Share capital 867 848 859
Share issue 18
Premium fund 13,228 12,919 13,101
Translation differences -1 -1 -1
Retained earnings 9,187 7,011 7,704
Total shareholders' equity 23,280 20,795 21,663
Long-term liabilities
Other long-term liabilities 472 242 373
Accounts payable and other liabilities 6,407 6,218 8,245
Total liabilities 6,879 6,460 8,618
Total shareholders' equity and liabilities 30,159 27,255 30,280
CASH FLOW STATEMENT, IFRS (kEUR)
Group Group Group
01.01.- 01.01.- 01.01.-
30.09.07 30.09.06 31.12.06
Profit/loss for the period 1,363 -462 83
Adjustments to profit/loss for the period 1,399 980 1,151
Change in working capital -1,723 -1,635 -1,918
Financial items -19 41 43
Cash flow from operations 1,020 -1,076 -640
Investments in tangible and
intangible assets -910 -1,509 -2,368
Proceeds from other investments 52
Change in the additional trade price -675 -300 -424
Cash flow from investments -1,533 -1,809 -2,792
New share issue 135 136 345
Repurchase of own shares -103 -103
Own shares used in purchase of shares 103
Increase/decrease in long-term receivables 59 2 295
Increase/decrease in loans 174 280 62
Cash flow from financing 368 315 703
Change in cash and cash equivalents -144 -2,570 -2,729
Opening balance of cash and cash equivalents 547 3,276 3,276
Closing balance of cash and cash equivalents 403 706 547
CHANGE IN SHAREHOLDERS' EQUITY (kEUR)
Equity attributable to equity holders of the parent company
Share Share Premium Translation Retained
capital issue fund difference earnings Total
Shareholders' equity 01/01/2006 843 14 12,792 -1 7,545 21,193
Stock options used 4 -14 127 118
Share subscriptions 18 18
Share-based
payments 31 31
Repurchase of own shares -103 -103
Profit/loss for the period -462 -462
Shareholders' equity 30/09/2006 848 18 12,919 -1 7,011 20,795
Shareholders' equity 01/01/2007 859 13,101 -1 7,704 21,663
Translation differences -1 -1
Stock options used 8 127 135
Share-based
payments 120 120
Profit/loss for the period 1,363 1,363
Shareholders' equity 30/09/2007 867 13,228 -1 9,187 23,280
INVESTMENTS (kEUR) Group Group Group
01.01.- 01.01.- 01.01-
30.09.07 30.09.06 31.12.06
Gross investments in tangible
and intangible assets
and shares 921 1,539 2,394
Gross investments
% of net sales 3.4 6.4 6.9
RELATED-PARTY TRANSACTIONS (kEUR)
Group Group Group
01.01.- 01.01.- 01.01-
30.09.07 30.09.06 31.12.06
Management's emoluments
Salaries and other short-term employee benefits 655 609 744
Salary and benefits in connection with dismissals 287 287
Share-based payments 17 18
Satama has carried out market-based trading with one of its shareholders,
Trainers' House. However, the volume of trading has been insignificant.
PROVISION OF LIABILITIES AND CHARGES
Satama implemented a major restructuring programme in the second quarter of
2006. A provision of EUR 1.3 million was made in the financial statements of the
second quarter of 2006 to cover the expenses arising from the restructuring
programme. In 2006, EUR 0.8 million of the provision was used to cover actual
expenses, while EUR 0.3 million was recognised as income. On 31 December 2006,
EUR 0.2 million of the provision remained unused.
In 2007, EUR 0.1 million has been used to cover actual expenses. On
30 September 2007, EUR 0.1 million of the provision remained unused. Exact
figures are presented in the table below.
Restructuring provision (kEUR)
2006 2007
Provisions 1 January 160
Additions to provisions 1,277
Provisions used -859 -96
Provisions 30 September 418 64
PERSONNEL Group Group Group
01.01.- 01.01.- 01.01-
30.09.07 30.09.06 31.12.06
Average number of personnel 372 373 370
Personnel at the end of the period 371 337 366
COMMITMENTS AND CONTINGENT LIABILITIES (kEUR) Group Group Group
30.09.07 30.09.06 31.12.06
Collaterals and contingent liabilities
given for own commitments 4,083 5,718 5,752
OTHER KEY FIGURES Group Group Group
30.09.07 30.09.06 31.12.06
Equity-to-assets ratio (%) 77.2 76.3 71.9
Equity/share (EUR) 0.56 0.52 0.53
Helsinki, 25 October 2007
SATAMA INTERACTIVE PLC
BOARD OF DIRECTORS
For more information, please contact:
Tuomas Airisto, VP, Business development at +358 (0)207 581 505
Martti Ojala,CFO, at +358 (0)207 581 637
DISTRIBUTION:
OMX
Prominent media sources
http://www.satama.com - Investors
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