2009-04-29 07:59:00 CEST
2009-04-29 08:00:24 CEST
REGULATED INFORMATION
Alma Media - Interim report (Q1 and Q3)
Alma Media Corporation's Interim report for January-March 2009: Net sales and operating profit weakened in a declining media market
Alma Media Corporation Interim report April 29, 2009 at 9:00am (EET)
ALMA MEDIA CORPORATION'S INTERIM REPORT FOR JANUARY-MARCH 2009:
NET SALES AND OPERATING PROFIT WEAKENED IN A DECLINING MEDIA MARKET
January-March 2009 in brief:
- Net sales MEUR 76.4 (84.0), down 9.0%
- Operating profit MEUR 6.5 (11.6), 8.5% (13.8%) of net sales,
operating profit without one-time items MEUR 7.5 (11.6)
- Profit before taxes MEUR 6.5 (12.9), profit before taxes without
one-time items MEUR 7.5 (12.9)
- Profit for the period MEUR 4.7 (9.7), down 51.8%
- Earnings per share EUR 0.06 (0.13)
Outlook for 2009:
- Alma Media expects that the comparable net sales and operating
profit will be lower than in 2008 due to the decline in media
advertising. In the second quarter, net sales and operating profit
will drop significantly in comparison with the level of Q2/2008.
Kai Telanne, President and CEO:
- Along with the declining national economy, the media advertising
market experienced an exceptionally steep drop in January-March 2009.
Spending on media advertising decreased much more than, for example,
during the recession in the early 1990s. Online advertising also
declined.
The circulation of Alma Media's newspapers, according to audits
conducted in the first quarter, remains steady, with a moderate
decline for some of them. The readership of Alma Media's newspapers
has remained at a good level. The numbers of visitors in our online
services have still increased strongly, which has brought about a
clear increase in our total reach. The long-term investments in the
development of the online services are now being seen particularly in
the growing advertising sales of Iltalehti.fi. Alma Media will adapt
to the change in media consumption through intensive development of
the combination of the printed paper and its online services, the
so-called hybrid medium.
We prepared for the decline in media advertising by starting savings
programmes in the business units. These actions proceeded well during
the first quarter of 2009.
At the end of the first quarter, Alma Media's financial position
remains excellent which will enable operational development and
renewal according to strategy, as well as acquisitions.
For more information, please contact:
Kai Telanne, President and CEO, telephone +358 10 665 3500
Tuomas Itkonen, CFO, telephone +358 10 665 2244
Conference, webcast and conference call:
Alma Media will hold a conference in Finnish concerning its
January-March results in the "Carl" conference room of the Scandic
Marski hotel at the address Mannerheimintie 10, Helsinki from 11:00am
to 12:00noon on April 29, 2009. The results will be presented by Kai
Telanne, President and CEO, and Tuomas Itkonen, CFO.
A webcast in English will start at www.almamedia.fi at 1:00pm (EET).
A conference call in English for investors and analysts will start at
1:30pm (EET). To participate, please call +44 (0)20 7162 0125.
Rauno Heinonen
Vice President, Corporate Communications and IR
Alma Media Corporation
DISTRIBUTION:
NASDAQ OMX Helsinki
Principal media
ALMA MEDIA CORPORATION: INTERIM REPORT JANUARY 1-MARCH 31, 2009
The text of this review focuses on the January-March results. The
figures are compared in accordance with the International Financial
Reporting Standards (IFRS) with those of the corresponding period in
2008, unless otherwise stated. The figures in the tables are
independently rounded.
GROUP KEY FIGURES
2009 2008 Change 2008 2007
MEUR Jan-Mar Jan-Mar % Jan-Dec Jan-Dec
Net sales 76.4 84.0 -9.0 341.2 328.9
Operating profit 6.5 11.6 -43.9 48.3 64.4
% of net sales 8.5 13.8 14.2 19.6
Operating profit without
one-time items 7.5 11.6 -35.2 47.7 52.9
% of net sales 9.8 13.8 14.0 16.1
Return on Equity/ROE
(Annually)* 25.6 50.8 37.7 43.8
Return on Invest/ROI
(Annually)* 20.6 40.0 34.8 39.9
Net financial expenses 0.1 -0.3 133.0 0.4 -0.1
Net financial expenses, % of
net sales 0.1 -0.3 0.1 0.0
Share of associated companies'
results 0.1 1.0 -87.4 4.5 3.5
Balance sheet total 180.7 180.9 -0.1 166.9 181.3
Gross capital expenditure 1.5 6.2 -75.8 14.5 12.1
Gross capital expenditure, %
of net sales 2.1 7.4 4.2 3.7
Equity ratio 45.8 39.5 57.2 69.8
Gearing, % 5.3 42.6 6.5 -15.2
Interest-bearing net debt 3.8 25.8 -85.3 5.8 -17.9
Interest-bearing liabilities 35.6 41.6 -14.4 19.1 6.8
Non-interest-bearing -4.8
liabilities 74.8 78.6 59.3 56.2
Average no. of personnel,
calculated as full-time
employees, excl. delivery 0.0
staff 1 933 1 932 1 981 1 971
Average no. of delivery staff 937 937 0.0 968 962
Earnings/share, EUR
(basic) 0.06 0.13 -53.8 0.51 0.68
Earnings/share, EUR
(diluted) 0.06 0.13 -53.8 0.51 0.68
Cash flow from operating
activities, EUR 0.34 0.36 -5.6 0.63 0.70
Shareholders' equity/share, 16.3
EUR 0.93 0.80 1.18 1.58
Market capitalization 390.2 634.2 -38.5 369.3 870.7
Average no. of shares (1,000
shares)
- basic 74,613 74,613 74,613 74,613
- diluted 74,613 74,825 74,764 74,773
No. of shares at end of period
(1,000 shares) 74,613 74,613 74,613 74,613
*ref. Main accounting principles of Interim Report
GROUP NET SALES AND RESULT JANUARY-MARCH 2009
The Group's net sales from January to March 2009 totalled MEUR 76.4
(MEUR 84.0). The share of the online business was 13.8% (13.3%) of
consolidated net sales, MEUR 10.5 (11.2). The operating profit
amounted to MEUR 6.5 (11.6). The comparable operating profit for the
first quarter was MEUR 7.5 (11.6), down 35.3% from the comparison
period. The operating margin was 8.5% (13.8%).
The operating profit includes one-time items in the amount of MEUR
1.0 (0.0) from reorganisation costs due to savings measures.
Net sales of the Newspapers segment were MEUR 53.9 (57.3). Net sales
of the segment's advertising sales declined 14.1% from the comparison
period. Circulation net sales for Newspapers increased slightly,
supported by price increases. The comparable operating profit for
Newspapers was MEUR 7.6 (9.3).
Net sales of the Kauppalehti Group were MEUR 16.2 (18.5). The
segment's media sales declined 25.6% from the comparison period.
Circulation sales declined 4.9%. The comparable operating profit for
the Kauppalehti Group was MEUR 0.9 (2.0).
Net sales of the Marketplaces segment were MEUR 7.2 (9.1). The
comparable operating loss of Marketplaces was MEUR 0.2 (operating
profit of MEUR 1.1).
OUTLOOK FOR 2009
The exceptionally high uncertainty in the Finnish media market
continues.
Alma Media expects the single-copy sales of afternoon papers to
continue their decline. The circulations of regional and local
papers, as well as business newspaper Kauppalehti, are estimated to
stay neutral or decline slightly. Advertising in newspapers and the
online media is expected to decline further in comparison with the
previous year.
Alma Media expects that the comparable net sales and operating profit
will be lower than in 2008 due to the decline in media advertising.
In the second quarter, net sales and operating profit will drop
significantly in comparison with the level of Q2/2008.
MARKET CONDITIONS
The Finnish national economy declined rapidly in early 2009. In
January, the GNP was 9.8% lower than in January 2008. The GNP of
Finland is forecast to weaken 3.0% to 6.5% in 2009.
In the media advertising market, the drop that started towards the
end of 2008 further steepened in the beginning of 2009. According to
data collected by TNS Media Intelligence, the amount of euros spent
on media advertising fell by 16.7% in January and 21.9% in February
compared with the 2008 figures. In newspapers, advertising decreased
22.8% and 25.7%, respectively. TNS Gallup has not yet published the
market data for March 2009.
The circulation market for afternoon papers declined 11.7% in
January-March.
NET SALES AND OPERATING PROFIT BY SEGMENT
2009 2008 2008
NET SALES BY SEGMENT, MEUR Jan-Mar Jan-Mar Jan-Mar
Newspapers
External 52.8 56.1 232.2
Inter-segments 1.1 1.2 4.5
Newspapers total 53.9 57.3 236.7
Kauppalehti Group
External 16.2 18.4 73.4
Inter-segments 0.1 0.0 0.1
Kauppalehti Group total 16.2 18.5 73.5
Marketplaces
External 7.2 9.0 34.0
Inter-segments 0.0 0.1 0.3
Marketplace total 7.2 9.1 34.3
Others
External 0.4 0.4 1.6
Inter-segments 3.6 3.0 13.5
Others total 4.0 3.4 15.1
Elimination -4.8 -4.3 -18.4
Total 76.4 84.0 341.2
2009 2008 2008
OPERATING PROFIT/LOSS BY SEGMENT, MEUR * 1-3 1-3 1-12
Newspapers 6.9 9.3 41.5
Kauppalehti Group 0.6 2.0 9.7
Marketplaces -0.2 1.1 2.0
Other operations -0.8 -0.8 -4.9
Total 6.5 11.6 48.3
*) including one-time items
NEWSPAPERS SEGMENT
Key figures, MEUR 2009 2008 2008
Jan-Mar Jan-Mar Jan-Dec
Net sales 53.9 57.3 236.7
Circulation sales 26.9 26.4 108.6
Advertising sales 24.4 28.5 117.7
Other sales 2.5 2.5 10.4
Operating profit 6.9 9.3 41.5
Operating margin, % 12.8 16.3 17.5
Operating profit without one-time items 7.6 9.3 41.5
Operating margin without one-time
items, % 14.1 16.3 17.5
Average no. of personnel,
calculated as full-time
employees excl. delivery staff 1 152 1 167 1 197
Average no. of delivery staff 937 937 968
Operational key figures 2009 2008 2008
1-3 1-3 1-12
Audited circulation
Iltalehti 122,548
Aamulehti 139,130
Online services, unique visitors,
weekly
Iltalehti.fi 1,710,305 1,298,087 1,412,534
Telkku.com 596,032 533,422 515,939
Aamulehti.fi 194,418 131,280 147,048
The Newspapers segment reports the publishing activities of 35
newspapers. The largest of the papers are Aamulehti and Iltalehti.
The first-quarter net sales for the Newspapers segment declined 6.0%
from the previous year, totalling MEUR 53.9. Advertising sales in
this segment declined MEUR 4.0, -14.1%, during the first quarter.
Aamulehti and Satakunnan Kansa suffered most from this development.
Advertising sales for the online business developed positively
throughout the segment. Media sales for Iltalehti.fi grew by MEUR 0.4
in the first quarter, amounting to MEUR 1.2, up 45.1% from the
comparison period. The growth of Iltalehti.fi's media sales could not
entirely compensate for the decline in the advertising sales of the
printed paper.
Circulation net sales for Newspapers grew assisted by price increases
in the early part of the year. Circulation development for regional
and local papers was neutral or in a slight decline. Iltalehti's
circulation decreased 11.0% while the entire afternoon paper market
declined 11.7%.
Cost savings have been realised according to specific plans of
business units. In the first quarter, savings have primarily
encompassed printing, distribution and marketing. The amount of waste
paper has been clearly reduced at printing houses.
The Newspapers segment's first-quarter operating profit declined to
MEUR 6.9 (9.3). The segment's comparable operating profit was MEUR
7.6 (9.3).
The statutory personnel negotiations concerning the entire personnel
of Kustannusosakeyhtiö Iltalehti ended in March. The subject of the
negotiations was the planned rationalisation and reorganisation of
Iltalehti's operations and their effect on the staff. As a result of
the negotiations, 22 person years were reduced from Iltalehti.
Personnel negotiations concerning Kokkolan Sanomat, Vieskalainen,
Pyhäjokiseutu, Raahen Seutu and Raahelainen, all newspapers published
by Suomen Paikallissanomat, ended in early April. As a result of the
negotiations, these papers will form a joint regional business unit.
KAUPPALEHTI GROUP
Key figures, MEUR 2009 2008 2008
Jan-Mar Jan-Mar Jan-Dec
Net sales 16.2 18.5 73.5
Circulation sales 5.9 6.2 24.8
Advertising sales 4.3 5.8 22.2
Other sales 6.0 6.5 26.4
Operating profit 0.6 2.0 9.7
Operating margin, % 4.0 10.6 13.2
Operating profit without one-time items 0.9 2.0 9.7
Operating margin without one-time items, % 5.6 10.6 13.2
Average no. of personnel,
calculated as full-time employees 488 497 499
Operational key figures 2009 2008 2008
1-3 1-3 1-12
Audited circulation
Kauppalehti 86,654
Online services, unique visitors, weekly
Kauppalehti.fi 544,064 348,877 391,453
The Kauppalehti Group specialises in the production of business and
financial information. Its best known title is Finland's leading
business medium, Kauppalehti. The group also includes the contract
publishing company Lehdentekijät, direct marketing company
Kauppalehti 121 and the news agency BNS operating in the Baltic
countries.
The net sales of the Kauppalehti Group declined 12.2% in the first
quarter of 2009, being MEUR 16.2. Due to the market conditions, the
group's media sales declined by 25.6%. The segment's circulation
sales did not reach the previous year's first-quarter level due to
the developments in sales in contract publishing.
Kauppalehti's main title was redesigned in early 2009. The
circulation audit for 2008 was carried out in March, and it reported
a record circulation of 86,654, up 6.5% from the previous year. The
Kauppalehti.fi online service has continued to attract more visitors.
The latest weekly record is 580,944 weekly visitors on week 14.
Market information services, part of the Kauppalehti Group and
including ePortti, Kauppalehti.fi and Balance Consulting, continued
its content development and increased its net sales.
Implementation of the planned cost savings have advanced in all
business units of the Kauppalehti Group. The most significant savings
have been achieved in printing and distribution costs, as well as
sales and marketing operations.
The operating profit of the Kauppalehti Group declined MEUR 1.3 and
was MEUR 0.6. The comparable operating profit for the group was MEUR
0.9 (2.0).
The television channel MTV Oy terminated the cooperation agreement
concerning Kauppalehti Business News as part of its efficiency
initiative and development of its programme map. The broadcasts will
end in July 2009. Because of the termination, Kauppalehti Oy has
initiated statutory personnel negotiations concerning the entire
editorial staff of Kauppalehti covering the effects of the
termination on Kauppalehti's cross-media editorial office.
Lehdentekijät Oy completed its statutory personnel negotiations
concerning its entire staff in March. The restructuring measures
discussed at the negotiations led to the reduction of eight people.
Most of the reductions will be realised through agreements or pension
arrangements. One person was laid off.
MARKETPLACES SEGMENT
Key figures, MEUR 2009 2008 2008
Jan-Mar Jan-Mar Jan-Dec
Net sales 7.2 9.1 34.3
Operations in Finland 6.0 7.6 28.0
Operations outside Finland 1.2 1.5 6.3
Operating profit -0.2 1.1 2.0
Operating margin, % -2.8 12.5 5.9
Operating profit without one-time items
-0.2 1.1 2.0
Operating margin without one-time items, %
-2.8 12.5 5.9
Average no. of personnel,
calculated as full-time employees 230 199 216
Operational key figures 2009 2008 2008
Jan-Mar Jan-Mar Jan-Dec
Online services, unique visitors, weekly
Etuovi.com 351,666 326,423 321,176
Autotalli.com 101,303 99,947 91,744
Monster.fi 83,915 83,931 65,585
Mikko.fi 78,380 42,664 47,915
Mascus.com 127,551 61,035 80,679
City24 290,999 264,072 265,516
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 City 24,
Motors 24, Mascus and Bovision.
In the first quarter of 2009, the net sales of Marketplaces declined
20.7%. The drastic drop in recruitment advertising in Finland, as
well as shrinking home sales advertising in all of Marketplaces'
market areas, turned the net sales growth enjoyed for a long time
into a decline. In the diminishing market, Monster.fi, Etuovi.com and
Autotalli.com have, however, all increased their market shares.
Mascus has continued to expand, and new countries have been entered
through licence agreements. At the moment, Mascus operates in 29
countries on four continents.
Cost savings have been implemented as planned. During the first
quarter, they mainly concerned marketing as well as the printing and
distribution of the Etuovi printed version.
The result of Marketplaces declined from an operating profit of MEUR
1.1 to an operating loss of MEUR 0.2. The figures for the segment do
not include any one-time capital items in the first quarter.
ASSOCIATED COMPANIES
Share of associated companies' results, MEUR 2009 2008 2008
Jan-Mar Jan-Mar Jan-Dec
Newspapers 0.0 0.0 0.1
Kauppalehti Group
Talentum Oyj -0.1 0.7 1.6
Marketplaces 0.0 0.0 0.0
Other operations
AP-Paino Oy 0.0 0.0 1.8
Other associated companies 0.2 0.2 0.9
Total 0.1 1.0 4.5
The Group holds a 29.9-% stake in Talentum Oyj, which is reported
under the Kauppalehti Group. The company's own shares in the
possession of Talentum are here included in the total number of
shares. In the consolidated financial statements of Alma Media the
own shares held by Talentum itself are not included in the total
number of shares. Alma Media's shareholding was stated as 30.3% in
its consolidated financial statements of December 31, 2008.
Alma Media sold its ownership in AP-Paino Oy in December 2008.
BALANCE SHEET AND FINANCIAL POSITION
The consolidated balance sheet at the end of March 2009 stood at MEUR
180.7 (166.9 on December 31, 2008). The equity ratio at the end of
March was 45.8% (57.2% on December 31, 2008) and equity per share was
EUR 0.93 (1.18 on December 31, 2008).
The Group currently has a MEUR 100 commercial paper programme in
Finland under which it is permitted to issue papers to a total amount
of MEUR 0-100. The unused part of the programme was MEUR 70.2 on
March 31, 2009.
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.
The consolidated cash flow decreased MEUR 1.2 below the comparison
period, being MEUR 25.6. Cash flow before financing was MEUR 24.8
(24.0). The investment cash flow for the comparison period was
affected by the acquisition of Jadecon Oy in early 2008.
CAPITAL EXPENDITURE
The Alma Media Group's capital expenditure in January-March totalled
MEUR 1.5 (6.2). The expenditure comprised normal operational and
replacement investments. In the comparison year, the entire stock of
Jadecon Oy was purchased.
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 strategic risks for Alma Media are a significant drop in the
readership of its newspapers and a decline in advertising sales.
Fluctuating economic cycles are reflected on the development of
advertising sales, which accounts for approximately half of the Group
net sales. Developing businesses outside Finland, such as the Baltic
countries and other East European countries, include country-specific
risks relating to market development and economic growth.
In the long term, the media business will undergo changes along with
the changes in media consumption and technological developments. Alma
Media's strategic objective is to meet this challenge through renewal
and the development of new business operations, particularly in
online media.
The most important operational risks are disturbances in information
technology systems and telecommunication, and an interruption of
printing operations.
ADMINISTRATION
Alma Media Corporation's ordinary Annual General Meeting (AGM) held
on March 11, 2009 elected Lauri Helve, Matti Kavetvuo, Kai Seikku,
Erkki Solja, Kari Stadigh, Harri Suutari, Catharina
Stackelberg-Hammarén and Seppo Paatelainen as members of the Board of
Directors. The decision was in accordance with the proposal by the
Board's Nomination and Compensation Committee.
In its constitutive meeting held after the AGM, the Board of
Directors elected Kari Stadigh its Chairman and Seppo Paatelainen its
Deputy Chairman. The Board also elected the members of its
committees. Kai Seikku, Erkki Solja, Catharina Stackelberg-Hammarén
and Harri Suutari were elected members of the Audit Committee. Kari
Stadigh, Seppo Paatelainen and Lauri Helve were elected members of
the Nomination and Compensation Committee.
The AGM elected the auditing firm Ernst & Young Oy the company's
auditor.
Oy Herttaässä Ab who owns more than 10% of Alma Media shares proposed
a special audit covering Alma Media's administration and accounting
for the financial periods 2006, 2007, 2008 and the current financial
period to the annual general meeting. The proposal was considered by
the meeting, and as the shareholding of Oy Herttaässä Ab exceeds 10%
of all shares, the proposal was recorded in the minutes. A
shareholder may make an application for a special audit to the State
Provincial Office of the company's domicile. The application must be
made within one month of the annual general meeting. The State
Provincial Office in Helsinki on April 17, 2009 confirmed to Alma
Media that Oy Herttaässä Ab has not submitted an application
concerning Alma Media Corporation.
DIVIDEND
In accordance with the proposal by the Board of Directors, the Annual
General Meeting (AGM) decided to pay a dividend of EUR 0.30 per share
for the financial period 2008. The dividends were paid to
shareholders who were entered in Alma Media Corporation's shareholder
register maintained by Euroclear Finland Oy on the record date, March
16, 2009. Dividend payment date was March 25, 2009. The dividends
paid to the shareholders of the company in March totalled MEUR 22.4.
In addition, the AGM decided, in accordance with the proposal by the
Board of Directors, that the Board of Directors be authorised to
decide on distributing a maximum of EUR 0.20 per share in additional
dividends. The additional dividend may be distributed in one lot or
in several proportions. The total dividend for the 2008 financial
year based on the authorisation may be no more than EUR 0.50 per
share. The authorisation includes a right to the Board of Directors
to decide upon all other conditions pertaining to the distribution of
the dividend.
THE ALMA MEDIA SHARE
Altogether 13,887,392 Alma Media shares were traded at NASDAQ OMX
Helsinki Stock Exchange between January and March, representing 18.6%
of the total number of shares. The closing price of the Alma Media
share at the end of the last trading day of the review period, March
31, 2009, was EUR 5.23. The lowest quotation during the review period
was EUR 4.50 and the highest was EUR 5.53. Alma Media Corporation's
market capitalisation at the end of the review period was MEUR 390.2.
The company does not own any of its own shares. The Annual General
Meeting decided to authorise the Board of Directors to repurchase a
maximum of 3,730,600 of the company's shares, representing 5% of all
shares. The authorisation is valid until the closing of the next
ordinary general meeting.
Option rights
Option programme 2006
The Annual General Meeting of March 8, 2006 approved a three-stage
option programme (option rights 2006A, 2006B and 2006C), disapplying
the pre-emptive subscription right of the shareholders. Under the
programme, stock options may be granted to the managements of Alma
Media Corporation and its subsidiaries as incentives for ensuring
motivation and long-term commitment. Altogether 1,920,000 stock
options may be granted in three lots of 640,000 each, and these may
be exercised to subscribe to a maximum of 1,920,000 Alma Media
shares.
A total of 515,000 2006A options have been issued to Group
management. Altogether 75,000 of the 2006A options have been returned
to the company due to the termination of employment contracts. After
the returned options, Group management possesses a total of 440,000
2006A option rights. In 2007 and 2008, Alma Media's Board of
Directors decided to annul a total of 200,000 2006A option rights in
possession of the company. The option rights of the 2006A programme
are traded at NASDAQ OMX Helsinki Exchange since April 10, 2008.
In 2007, the Board of Directors of Alma Media decided to issue
515,000 options under the 2006B programme to Group management.
Altogether 50,000 of the 2006B options have been returned to the
company and are now in its possession. Group management possesses a
total of 465,000 2006B option rights. In 2008, the Board of Directors
decided to annul a total of 125,000 2006B option rights. The option
rights of the 2006B programme are traded at NASDAQ OMX Helsinki
Exchange since April 1, 2009.
In 2008, the Board of Directors of Alma Media 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 and are now in its possession. Group management possesses a
total of 470,000 2006C option rights.
If all the subscription rights are exercised, this programme would
dilute the holdings of the earlier shareholders by 2.1%.
The share subscription periods and prices are:
2006A: April 1, 2008-April 30, 2010, average trade-weighted price
April 1-May 31, 2006
2006B: April 1, 2009-April 30, 2011, average trade-weighted price
April 1-May 31, 2007
2006C: April 1, 2010-April 30, 2012, average trade-weighted price
April 1-May 31, 2008
The subscription price of shares that may be subscribed under these
stock option rights will be reduced by the amount of dividends and
capital repayments decided after the start of the period determining
the subscription price and before the subscription of shares on the
settlement date for each dividend payment or capital repayment. The
share subscription price under the 2006A option is EUR 5.28 per
share, the subscription price under the 2006B option is EUR 8.65 and
the subscription price under the 2006C option is EUR 8.76,
correspondingly.
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 people 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.
The granting of option rights is decided upon by the Board of
Directors. The shares subscribed on the basis of the option rights
now issued will constitute no more than 2.8% of all of the company's
shares and votes after a share subscription, in case new shares are
issued.
The share subscription periods and prices are:
2009A: April 1, 2012-March 31, 2014, average trade-weighted price
April 1-30, 2009
2009B: April 1, 2013-March 31, 2015, average trade-weighted price
April 1-30, 2010
2009C: April 1, 2014-March 31, 2016, average trade-weighted price
April 1-30, 2011
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 and eQ Pankki Oy have made a liquidity contract under
which eQ Pankki Oy guarantees bid and ask prices for the shares with
a maximum spread of 3% during 85% of the exchange's trading hours.
The contract applies to a minimum lot of 2,000 shares.
Flagging notices
During January-March 2009, Alma Media received the following notices
of changes in shareholdings according to Chapter 2, Section 9 of the
Securities Act:
According to a notice by Oy Herttaässä Ab (business ID FI-07616588)
to Alma Media on March 31, 2009 the forward contracts flagged by Oy
Herttaässä Ab on June 6, 2008 and matured on March 20, 2009 have not
been converted into shares, thus the shareholding of Oy Herttaässä Ab
in Alma Media has not changed.
On February 27, 2009 Alma Media received a notice of the ownership of
Danske Bank A/S Helsinki Branch (business ID FI-10786932) having on
February 27, 2009 been reduced under the flagging limit of 1/20 (5%)
to zero due to a share transaction on February 26, 2009.
On February 27, 2009 Alma Media received a notice of Skandinaviska
Enskilda Banken AB (publ) owning 11,958,000 Alma Media shares,
corresponding to 16% of the share capital and votes in Alma Media
Corporation. Skandinaviska Enskilda Banken announces that it has
conducted this share transaction to protect itself from a transaction
risk that ends in the same amount on March 20, 2009.
EVENTS AFTER THE REVIEW PERIOD
Statutory personnel negotiations will be initiated in Monster Oy and
the Etuovi.com business unit of Alma Media Interactive Oy concerning
the entire personnel of the said business units. The planned
objective of the negotiations is to adapt the operation to the
present market situation. The measures being planned are expected to
result in the termination of a maximum of 18 employment contracts.
SUMMARY OF FINANCIAL STATEMENTS AND NOTES
2009 2008 2008
INCOME STATEMENT, MEUR Jan-Mar Jan-Mar Jan-Dec
NET SALES 76.4 84.0 341.2
Other operating income 0.1 0.1 1.7
Materials and services -23.4 -25.1 -102.0
Costs arising from employment benefits -29.7 -29.3 -119.0
Depreciation and writedowns -2.2 -2.2 -8.8
Operating expenses -14.8 -15.9 -64.9
OPERATING PROFIT 6.5 11.6 48.3
Financial income 0.4 0.6 1.2
Financial expenses -0.5 -0.3 -1.6
Share of associated companies' results 0.1 1.0 4.5
PROFIT BEFORE TAX 6.5 12.9 52.4
Income tax -1.8 -3.2 -13.4
PROFIT FOR THE PERIOD 4.7 9.7 39.0
OTHER COMPREHENSIVE INCOME
Exchange difference on translation of foreign
operations 0.0 0.0 -0.8
Share of associated companies' other
comprehensive income -0.7 -0.3 -0.9
Income tax relating to components of other
comprehensive income 0.0 0.0 0.0
Other comprehensive income for the period.net
of tax -0.7 -0.3 -1.8
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 4.0 9.4 37.2
Distribution of the profit for the period:
To the parent company shareholders 4.7 9.4 38.4
Minority interest 0.0 0.3 0.6
Distribution of the comprehensive income for
the period:
To the parent company shareholders 4.0 9.1 36.6
Minority interest 0.0 0.3 0.6
Earning/share calculated from the profit for
the period to the parent company shareholders
Earnings/share, EUR 0.06 0.13 0.51
Earnings/share (diluted), EUR 0.06 0.13 0.51
BALANCE SHEET, MEUR 31 Mar 2009 31 Mar 2008 31 Dec 2008
ASSETS
NON-CURRENT ASSETS
Goodwill 33.0 32.8 33.0
Intangible assets 11.9 11.4 12.3
Tangible assets 34.3 37.7 35.2
Investments in associated 30.3 34.7
companies 31.6
Other financial assets 4.3 3.9 4.2
Deferred tax assets 1.3 1.0 1.3
CURRENT ASSETS
Inventories 1.3 1.2 1.5
Tax receivables 2.0 0.1 4.0
Accounts receivable and other 27.4 34.6
receivables 27.5
Other short-term financial 3.0 3.1
assets 2.9
Cash and cash equivalents 31.8 15.7 13.3
ASSETS AVAILABLE FOR SALE 0.0 4.7 0.0
TOTAL ASSETS 180.7 180.9 166.9
BALANCE SHEET, MEUR 31 Mar 2009 31 Mar 2008 31 Dec 2008
SHAREHOLDERS' EQUITY AND
LIABILITIES
Share capital 44.8 44.8 44.8
Share premium fund 2.8 2.8 2.8
Cumulative translation -0.8 0.0
adjustment -0.8
Retained earnings 22.8 12.2 41.1
Parent company shareholders' 69.6 59.8
equity 87.9
Minority interest 0.7 0.9 0.6
TOTAL SHAREHOLDERS' EQUITY 70.3 60.7 88.5
LIABILITIES
Non-current liabilities
Interest-bearing liabilities 3.6 4.4 3.9
Deferred tax liabilities 2.6 2.2 2.5
Pension obligations 3.5 3.6 3.7
Provisions 0.1 0.1 0.1
Other long-term liabilities 0.7 0.4 0.5
Current liabilities
Interest-bearing liabilities 31.9 37.2 15.2
Advances received 27.1 27.0 12.3
Tax liabilities 1.1 1.6 1.3
Provisions 1.1 0.2 1.0
Accounts payable and other 38.7 43.4
liabilities 37.9
TOTAL LIABILITIES 110.4 120.2 78.4
TOTAL EQUITY AND LIABILITIES 180.7 180.9 166.9
RECONCILIATION OF SHAREHOLDERS' EQUITY 1 January - 31 March 2009
Share Translation Parent
Share premium difference Retained company, Minority Equity,
MEUR capital fund earnings total interest total
Equity, 1 44.8 2.8 -0.8 41.1 87.9 0.6 88.5
January 2009
Dividend
paid by
parent
company -22.4 -22.4 -22.4
Dividends
paid by 0.0
subsidiaries
Share-based
payments 0.2 0.2
Total 0.0
Comprehensive
income for
the period 4.0 4.0 0.0 4.0
Equity, 1 44.8 2.8 -0.8 22.8 69.6 0.7 70.3
March 2009
RECONCILIATION OF SHAREHOLDERS' EQUITY 1 January - 31 March 2008
Share Translation Parent
Share premium difference Retained company, Minority Equity,
MEUR capital fund earnings total interest total
Equity, 1 44.8 2.8 0.0 70.0 117.7 0.6 118.3
January 2008
Dividend
paid by
parent
company -67.2 -67.2 -67.2
Dividends
paid by 0.0
subsidiaries
Share-based
payments 0.2 0.2 0.2
Total
Comprehensive
income for
the period 9.1 9.1 0.3 9.4
Equity, 1 44.8 2.8 0.0 12.2 59.8 0.9 60.7
March 2008 2009 2008 2008
CASH FLOW STATEMENT. MEUR Jan-Mar Jan-Mar Jan-Mar
Cash flow from operating activities
Profit for the period 4.7 9.7 39.0
Adjustments 4.0 3.9 17.5
Change in working capital 16.1 15.4 4.0
Dividend income received 0.9 0.2 4.5
Interest income received 0.2 0.4 0.9
Interest expenses paid -0.5 -0.3 -1.6
Taxes paid 0.2 -2.5 -17.5
Net cash provided by operating activities 25.6 26.8 46.9
Cash flow from investing activities
Investments in tangible and intangible
assets -0.8 -0.9 -4.2
Proceeds from disposal of tangible and
intangible assets 0.0 0.0 1.0
Other investments 0.0 0.0 -1.2
Proceeds from disposal of other investments 0.0 0.1 0.8
Subsidiary shares purchased 0.0 -2.0 -4.0
Associated company shares purchased 0.0 0.0 0.0
Associated company shares purchased 0.0 0.0 6.5
Net cash used in investing activities -0.8 -2.8 -1.0
Cash flow before financing activities 24.8 24.0 45.8
Cash flow from financing activities
Long-term loan repayments 0.0 0.0 0.0
Short-term loans raised 17.8 35.0 35.0
Short-term loans repaid -1.5 -0.6 -24.3
Change in interest-bearing receivables -0.1 -0.2 0.0
Dividends paid and capital repayment -22.4 -67.2 -67.8
-6.2 -33.0 -57.1
Change in cash funds (increase + / decrease
-) 18.6 -9.0 -11.2
Cash and cash equivalents at start of period 13.3 24.8 24.8
Impact of change in foreign exchange rates 0.0 0.0 -0.2
Cash and cash equivalents at end of period 31.8 15.7 13.3
2009 2008 2008
Net sales by geographical area, MEUR Jan-Mar Jan-Mar Jan-Mar
Finland 73.1 79.3 324.0
Rest of EU countries 3.1 4.5 16.7
Rest of other countries 0.2 0.2 0.6
Yhteensä 76.4 84.0 341.2
INFORMATION BY SEGMENT
Alma Media's reporting segments in the financial statements are
Newspapers, Kauppalehti Group and Marketplaces. Other Operations
comprise the Group's parent company and the operations of the Group's
financial management service centre.
The descriptive section of the financial statements 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 not allocated to the segments. 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 Mar 2009 31 Mar 2008 31 Dec 2008
Newspapers 65.3 69.6 67.5
Kauppalehti group 53.7 58.4 52.3
Marketplaces 14.3 16.8 15.2
Other operations and 12.2 19.2
eliminations 10.5
Non-allocated assets 35.2 16.9 21.4
Total 180.7 180.9 166.9
LIABILITIES BY SEGMENT, MEUR 31 Mar 2009 31 Mar 2008 31 Dec 2008
Newspapers 43.9 45.4 32.7
Kauppalehti group 15.9 15.3 11.8
Marketplaces 4.1 4.2 4.2
Other operations and 7.3 9.8
eliminations 6.8
Non-allocated liabilities 39.2 45.5 22.9
Total 110.4 120.2 78.4
2009 2008 2008
GROUP INVESTMENTS, MEUR Jan-Mar Jan-Mar Jan-Mar
Newspapers 0.9 5.4 9.4
Kauppalehti group 0.3 0.4 1.4
Marketplaces 0.2 0.3 2.1
Others 0.1 0.1 1.6
Total 1.5 6.2 14.5
PROVISIONS
The company's provisions on March 31, 2009 totalled MEUR 1.2,
representing an increase of MEUR 0.1 from the situation on December
31, 2008. The major part of the provisions concern restructuring
provisions. It has not been necessary to change the estimates made
when the provisions were entered. The change in provisions is due to
actual expenses.
31 Mar 2009 31 Mar 31 Dec
COMMITMENTS AND CONTINGENCIES, MEUR 2008 2008
Collateral on own behalf
Chattel mortgages 0.0 0.0 0.0
Collateral for others
Guarantees 0.0 0.0 0.0
Other commitments
Commitments based on agreements 0.1 0.1 0.1
Minimum rents payable based on other lease
agreements:
Within one year 7.8 7.6 7.9
Within 1-5 years 19.4 17.4 19.1
After 5 years 27.4 25.8 27.9
Total 54.7 50.7 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: 2.5 4.2 3.1
GROUP DERIVATIVE CONTRACTS, MEUR 31 Mar 2009 31 Mar 2008 31 Dec 2008
Commodity derivative contracts.
electricity derivatives
Fair value * -0.2 0.1 -0.1
Nominal value 0.8 0.4 0.7
* the fair-value represents the return that would have arisen if the
derivative had been cleared on the balance sheet date.
RELATED PARTIES
Alma Media Group's related parties are its associated companies and
the companies they own. The following table summarises the business
operations undertaken between Alma Media and its associated companies
and the status of their receivables and liabilities:
RELATED PARTY ACTIVITIES WITH ASSOCIATED 2009 2008 2008
COMPANIES, MEUR Jan-Mar Jan-Mar Jan-Mar
Sales of goods and services 0.0 0.1 0.2
Purchases of goods and services 0.9 1.1 4.5
Accounts receivable, loan and other 0.0 4.7
receivables at the balance sheet date 0.0
Accounts payable at the balance sheet date 0.1 0.1 0.1
Related parties also include the company's senior management (members
of the Board of Directors, presidents and the Group Executive Team).
The section The Alma Media Share - Option Rights of this report
presents information on changes to the current option programme
intended to motivate and secure the long-term commitment of the
Group's senior management.
MAIN ACCOUNTING PRINCIPLES (IFRS)
This interim report has been prepared according to IFRS standards
(IAS 34).
The report applies the same accounting principles and calculation
methods as the previous annual accounts dated December 31, 2008.
However, the interim report 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 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 by formula ((1+quartal's return)4)-1).
In the financial year 2009, the Group has adopted the following new
accounting standards and interpretations:
IFRS 8 Operating Standards
IAS 23 Borrowing costs, amendment to standard
IAS 1 Presentation of financial statements, amendment to standard
IFRS 2 Share-based payments, amendment to standard
IAS 1: Presentation of financial statements and IAS 32 presentation
of financing instruments, amendment to standard
IAS 39: IAS 39 Financial Instruments: recognition and measurement,
amendment to standard
IFRIC 12 Service concession arrangements
IFRIC 13 Customer loyalty programmes
Improvements to IFRS amendments
The European Union has not yet approved the adoption of the amended
standard IAS 39. An EU approval is necessary for the amended
standards to be adopted within the Group.
The Group preliminarily expects that the above new standards and
interpretations will have only a minor effect. Their application
mainly affects the way of presenting the profit and loss statement,
the balance sheet, the presentation of changes in equity and notes to
the financial statements.
New accounting standards to be adopted from the beginning of 2010
are:
IFRS 3 Business combinations, amendment to standard
IAS 27 Consolidated and separate financial statements, amendment to
standard
These amendments will affect the treatment of future acquisitions as
far as, for example, the minority share, goodwill and acquisition
costs are concerned. The amendments will have no effect on
acquisitions already made.
These amended standards are not yet approved for application in the
EU. This approval is necessary for their adoption by the Group.
The figures in this interim report are unaudited.
SEASONALITY
The Group recognises its circulation revenues as paid. For this
reason circulation revenues accrue in the income statement fairly
evenly during the four quarters of the year. The bulk of circulation
invoicing takes place at the beginning of the year and therefore the
cash flow from operating activities is strongest early in the year.
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 and business conditions.
NEXT INTERIM REPORT
Alma Media will publish its financial statements for the first six
months of 2009 at 9:00am (EET) on July 23, 2009.
ALMA MEDIA CORPORATION
Board of Directors
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