2015-04-29 07:30:03 CEST
2015-04-29 07:30:13 CEST
REGULATED INFORMATION
Sanoma Oyj - Interim report (Q1 and Q3)
Sanoma’s Interim Report 1 January – 31 March 2015: Mixed performance in challenging environment
Sanoma Corporation, Stock Exchange Release, 29 April 2015 at 8:30 CET+1
First quarter
-- Net sales amounted to EUR 380.1 million (2014: 438.3).
-- Adjusted for changes in the Group structure, Sanoma's net sales decreased
by 3.8%.
-- Operating profit excluding non-recurring items was EUR -19.9 million (2014:
-4.0).
-- Non-recurring items included in the operating profit amounted to EUR 8.8
million (2014: 166.0), mainly related to a sales gain and restructuring
expenses. In the previous year, non-recurring items consisted mainly of
sales gains on real estate.
-- Earnings per share were EUR -0.06 (2014: 0.77).
-- Earnings per share excluding non-recurring items were EUR -0.15 (2014:
-0.09).
-- Cash flow from operations was EUR -73.1 million (2014: -52.1).
Outlook (unchanged)
In 2015, Sanoma expects that the Group's consolidated net sales growth adjusted
for structural changes will be around the previous year's development (2014:
-3.7%). The operating profit margin excluding non-recurring items is estimated
to be at or above the previous year's level (2014: 6.2% of net sales).
Mid-term outlook (unchanged)
Based on the execution of the strategic redesign, Sanoma expects that from 2016
onwards, the Group's consolidated net sales will return to organic growth. The
operating profit margin excluding non-recurring items is targeted to be around
10% of net sales. Sanoma is targeting for a net debt to EBITDA ratio below 3.5.
Key indicators (based on reported figures, not adjusted for structural changes)
1-3/ 1-3/ Change 1-12/
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EUR million 2015 2014 % 2014
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Net sales 380.1 438.3 -13.3 1,901.6
Operating profit excluding non-recurring items -19.9 -4.0 118.8
% of net sales -5.2 -0.9 6.2
Operating profit -11.0 162.1 133.8
Result for the period -8.3 126.3 61.6
Capital expenditure * 12.0 9.6 24.0 50.7
% of net sales 3.1 2.2 2.7
Return on equity (ROE), % ** -5.9 -11.3 4.9
Return on investment (ROI), % ** -0.5 -2.1 6.5
Equity ratio, % 40.4 42.3 42.2
Net gearing, % 73.2 71.3 66.7
Number of employees at the end of the period 7,000 8,831 -20.7 7,583
(FTE)
Average number of employees (FTE) 7,080 8,889 -20.3 8,259
Earnings/share, EUR -0.06 0.77 0.32
Cash flow from operations/share, EUR -0.45 -0.32 0.45
Equity/share, EUR 5.26 6.11 -13.9 5.54
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* Including finance leases.
** Rolling 12-month period.
Organic growth, %
1-3/2015 vs. 1-3/2014 1-12/2014 vs. 1-12/2013
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Media BeNe -1.6 -2.7
Media Finland -3.3 -5.3
Learning -6.7 1.0
Other -31.7 -14.2
Group -3.8 -3.7
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Harri-Pekka Kaukonen, President and CEO
“Our performance in the first three months of 2015 was mixed. The rolling 12
month growth trend improved from -3.7% to -3.2%. This was supported by new
media sales, which grew by over 5%. Now close to 40% of our consumer media
sales in the Netherlands, Belgium and Finland have been generated from new
media products and services during the last 12 months. However, the
profitability for the Group was not at a satisfactory level as operating profit
declined.
Our Finnish consumer media operations faced headwinds in the first quarter.
Print advertising sales declined by over 10% and growth in digital sales was
not able to compensate for the decline. Helsingin Sanomat consumer sales grew
thanks to improved content and good uptake in digital sales. However, total
sales and profitability declined for the Finnish operations. The need to turn
the tide is obvious. Pia Kalsta was appointed as new CEO of Media Finland. With
Kalsta we will enter the next phase of Sanoma's transformation in Finland:
improve profitability and return to growth.
Media BeNe, the new unit of our Dutch and Belgian media operations, performed
quite well in a tough market. The TV advertising market declined in the first
quarter. Visibility in TV advertising is poor and volatility between months is
high. Our Dutch TV operation had a slightly weaker start to the year in terms
of viewing share but SBS was able to achieve organic growth. Regarding the
Dutch magazine business, the focus title approach is paying off. Cross and
upsell is easier with a smaller portfolio and a number of magazines showed
growth in the first quarter. Also the press distribution business turned the
negative trend to positive as a result of achieving new clients. Overall
profitability in Media BeNe was on last year's level when adjusted for
divestments and acquisitions.
For Learning, the first quarter is seasonally very minor. The ordering pattern
is changing in the industry towards end of the summer, reinforcing seasonality
even more. This was partly visible in the Netherlands in the first quarter and
will be visible in the second quarter in Poland. However, this is a timing
shift issue between quarters and will not have an impact on the full year.”
January-March 2015 Interim Report webcast
The event for analysts, investors and media will be held in English by
President and CEO Harri-Pekka Kaukonen and CFO Kim Ignatius on 29 April 2015 at
11:00 Finnish time (9:00 UK time) at Sanomatalo, Töölönlahdenkatu 2, Helsinki.
The live webcast can be viewed on Sanoma's website at
www.sanoma.com/en/investors and on demand after the event.
Please join by dialing
Finland: +358 (0)9 6937 9543 / US: +1 646 254 3362 / UK: +44 (0)20 3427 1905 /
Netherlands: +31 (0)20 794 6706
Conference id: 8622277
Financial reporting 2015
- Interim Report January-June on 23 July 2015, approx. at 8:30
- Interim Report January-September on 29 October 2015, approx. at 8:30.
Additional information
Sanoma's Investor Relations, Olli Turunen, tel. +358 40 552 8907
Sanoma.com
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