Talentum Oyj - Financial Statement Release

TALENTUM OYJ'S FINANCIAL STATEMENT RELEASE 2013

Helsinki, Finland, 2014-02-12 07:30 CET (GLOBE NEWSWIRE) -- 

TALENTUM OYJ      FINANCIAL STATEMENT RELEASE      12 February 2014 at 8.30 a.m.

Talentum Oyj's Financial Statement Release for January-December 2013:

MAGAZINE BUSINESS FINLAND MADE A GOOD RESULT, RESTRUCTURING IN SWEDEN CONCLUDED

October-December 2013 in brief

- Talentum Group's net sales totalled EUR 22.1 million (EUR 22.5 million)
- Operating income without non-recurring items was EUR 3.1 million (EUR 2.4
million) and operating income (EBIT) was EUR 1.6 million (EUR 2.6 million) 
- Operating income from Magazine Business Finland continued to develop well and
increased compared to previous year 
- Operating income from the Event Business increased compared to previous year
- Operating income without non-recurring items from Magazine Business Sweden
became profitable in the final quarter. The restructuring in Sweden caused a
non-recurring item of EUR 1.5 million. 
- The amount of advertising revenue in Talentum's media decreased by 17.2%. The
share of advertising revenue in Talentum's net sales was 26.2%. 
- Talentum Summa was published on 18 October 2013 and launching occurred as
planned 

Net sales of business functions:

-Magazine Business Finland: EUR 6.9 million (EUR 7.2 million)
-Magazine Business Sweden: EUR 5.7 million (EUR 6.6 million)
-Event Business: EUR 4.1 million (EUR 3.1 million)
-Books and Legal Training: EUR 3.3 million (EUR 3.5 million)
-Direct Marketing: EUR 2.8 million (EUR 3.0 million)

January-December 2013 in brief

- Talentum Group's net sales totalled EUR 75.6 million (EUR 77.2 million)
- Operating income without non-recurring items was EUR 3.1 million (EUR 2.4
million) and operating income (EBIT) was EUR 1.4 million (EUR -0.5 million) 
- All in all, 2013 was a good year for Magazine Business Finland. Operating
income increased significantly compared to previous year. 
- Operating income from the Event Business remained at the previous year's
level despite the good operating income in the final quarter 
- Operating income without non-recurring items from Magazine Business Sweden
remained slightly unprofitable mainly due to the weak performance in the first
half of the year 
- The amount of advertising revenue in Talentum's media decreased by 18.3%. The
share of advertising revenue in Talentum's net sales was 27.3%. 
-Circulation revenue increased by 2.9% in Finland and decreased slightly in
Sweden 

Net sales of business functions:

-Magazine Business Finland: EUR 26.4 million (EUR 27.3 million)
-Magazine Business Sweden: EUR 19.9 million (EUR 23.1 million)
-Event Business: EUR 12.6 million (EUR 11.0 million)
-Books and Legal Training: EUR 8.1 million (EUR 8.4 million)
-Direct Marketing: EUR 11.6 million (EUR 11.2 million)

The Board of Directors proposes that a dividend in the amount of EUR 0.04 to be
distributed for 2013 (for 2012 funds were distributed from the invested
non-restricted equity reserve of EUR 0.03 per share). 

KEY FINANCIAL FIGURES

EUR million                         10-12 2013  10-12 2012  1-12 2013  1-12 2012
Net sales                                 22.1        22.5       75.6       77.2
Operating income without                   3.1         2.4        3.1        2.4
 non-recurring items                                                            
as % of net sales                         14.0        10.8        4.0        3.1
Operating income                           1.6         2.6        1.4       -0.5
as % of net sales                          7.4        11.4        1.8       -0.7
Income before taxes                        2.0         2.7        1.6       -1.2
Net cash from operating activities                                3.5        1.0
Total assets                                                     49.7       55.1
Investments                                0.3         0.3        1.6        1.6
as % of net sales                          1.4         1.2        2.1        2.1
Return on invested capital %                                      3.2       -8.3
Return on equity %                                                6.0       -2.3
Equity ratio, %                                                  47.7       47.7
Gearing ratio, % (net debt to                                     2.5        5.6
 equity)                                                                        
Interest-bearing liabilities                                      4.8        4.6
Net interest-bearing liabilities                                  0.5        1.1
Personnel on average                                              760        754
Earnings per share, EUR                   0.03        0.06       0.03      -0.01
Cash flow from operating                                         0.08       0.02
 activities per share, EUR                                                      
Equity per share, EUR                                            0.43       0.45


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

Chief Executive Officer Aarne Aktan:"All in all, business developed relatively well in the final quarter. The
general media market continued to be characterised by weak development in terms
of both advertisement and circulation sales. Compared to the previous year, we
improved fourth-quarter operating income in the Magazine Business Finland and
Event Business segments. In other segments, operating income weakened compared
to the reference period. In October-December, the Finnish advertising market
for periodicals decreased by 10.5 per cent. The Swedish advertising market for
professional journals decreased by 21.5 per cent in October-December. 

Magazine Business Finland continued to perform well also in the final quarter.
Net sales decreased by three per cent. However, profitability improved from the
comparative period. Product advertising sales remained at the comparative
period's level in Finland, which was a reasonable achievement in the current
market situation. Recruitment advertising continued to decrease in Finland. 

In the final quarter, net sales and profitability from the Event Business
segment improved from the comparative period. In November, Tapio Teppo was
appointed new director of the Event Business segment. He assumed the role on 1
February 2014. 

Magazine Business Sweden performed satisfactorily in the final quarter. In
Sweden, advertising sales continued to decrease from the comparative period.
During the final quarter, we performed major restructuring in Sweden. Its
effects will be reflected in cost level as of second quarter of 2014. The
restructuring caused EUR 1.5 million of non-recurring costs for the final
quarter. Restructuring in Sweden is concluded. 

Net sales and profitability from the Books and Legal Training segment decreased
slightly from the comparative period. Also net sales and profitability from the
Direct Marketing segment decreased slightly from the comparative period. 

Talentum's digital service package - Talentum Summa -combines Talentum's
magazines, websites and business literature into one content service. Event
contents will also be added to the service at a later stage. Summa was
published in Finland on 18 October 2013, next step is to publish corresponding
service also in Sweden. Summa was launched as planned and has been received
well. 

In the final quarter, we also launched a new magazine - Tekniikan Historia.
Furthermore, we acquired the Tietokone magazine from Sanoma Magazines. The
magazine was handed over to us on 1 January 2014.” 

Talentum's prospects for 2014
Talentum estimates that its comparable net sales for 2014 will remain
approximately at the same level as in 2013 and that its comparable operating
income without non-recurring items will be higher than in 2013. 

The Board of Directors' motion concerning distribution of profits
The parent company's distributable profits as of 31 December 2013 comprise
invested non-restricted equity of EUR 52,942,876.08, treasury shares of EUR
-2,404,734.30 and EUR 3,195,238.27 of retained earnings, of which the profit
for the financial period is EUR 2,393,963.20, totalling EUR 53,733,380.05. 

The Board of Directors proposes that a dividend in the amount of EUR 0.04 to be
distributed for 2013 (for 2012 funds were distributed from the invested
non-restricted equity reserve of EUR 0.03 per share). 

Annual General Meeting
Talentum Oyj's Annual General Meeting will be held on 27 March 2014 at 2.00
p.m. in Helsinki. 

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

Financial information 2014
Talentum is planning to publish the results in 2014 as follows:

January-March result          24 April 2014
January-June result            17 July 2014
January-September result  23 October 2014

Briefing
A briefing in Finnish will be held for analysts and the media on 12 February
2014 at 11.00 a.m. in Sokos Hotel Vaakuna, Asema-aukio 2, 00100 Helsinki. 

TALENTUM OYJ
Board of Directors

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

DISTRIBUTION
NASDAQ OMX Helsinki
Principal media
www.talentum.com

Attachments:

FINANCIAL STATEMENT RELEASE_TALENTUM OYJ_Q4_2013.pdf