2013-04-25 07:30:03 CEST
2013-04-25 07:30:10 CEST
REGULATED INFORMATION
Talentum Oyj - Interim report (Q1 and Q3)
Talentum Oyj Interim Report Q1/2013
TALENTUM OYJ INTERIM REPORT 25 April 2013 at 08:30 Talentum Oyj Interim Report Q1/2013 January-March 2013 in brief - Talentum Group's net sales came to EUR 19.8 million (EUR 20.5 million), a decrease of 3.8%. - Operating income without non-recurring items was EUR 0.8 million (EUR 0.3 million). - Operating income (EBIT) was EUR 0.7 million (EUR -2.5 million). - Magazine Business Finland's operating income was good compared to the previous year thanks to successful circulation revenue and cost control. - Magazine Business Sweden's operating income was unprofitable due to weak advertisement revenue. - The amount of advertising revenue in Talentum's net sales was 27.3% and the amount decreased by 20.2%. - Talentum will launch a new portal called Talentum Summa during the second quarter in 2013 to utilize possibilities in the changing media sector. Net sales by business area: - Magazine Business Finland: EUR 7.2 million (EUR 7.5 million) - Magazine Business Sweden: EUR 5.2 million (EUR 6.2 million) - Event Business: EUR 3.2 million (EUR 3.2 million) - Books and Legal Training: EUR 2.0 million (EUR 2.0 million) - Direct Marketing: EUR 3.0 million (EUR 2.7 million) KEY FINANCIAL FIGURES EUR million 1-3/2013 1-3/2012 1-12/2012 -------------------------------------------------------------------------------- Net sales 19.8 20.5 77.2 -------------------------------------------------------------------------------- Operating income without non-recurring items 0.8 0.3 2.2 -------------------------------------------------------------------------------- as % of net sales 4.0 1.5 2.8 -------------------------------------------------------------------------------- Operating income 0.7 -2.5 -0.7 -------------------------------------------------------------------------------- as % of net sales 3.7 -12.3 -1.0 -------------------------------------------------------------------------------- Net cash from operating activities 0.3 0.7 1.0 -------------------------------------------------------------------------------- Total assets 56.7 61.9 55.0 -------------------------------------------------------------------------------- Investments 0.4 0.2 1.6 -------------------------------------------------------------------------------- as % of net sales 2.2 0.8 2.1 -------------------------------------------------------------------------------- Return on invested capital % 0.3 -11.7 -7.8 -------------------------------------------------------------------------------- Return on equity % 1.5 -11.2 -3.2 -------------------------------------------------------------------------------- Equity ratio, % 405.9 39.0 47.6 -------------------------------------------------------------------------------- Gearing ratio, % (net debt to equity) 5.7 -10.6 5.5 -------------------------------------------------------------------------------- Interest-bearing liabilities 3.3 1.8 4.6 -------------------------------------------------------------------------------- Net interest-bearing liabilities 1.1 -1.8 1.1 -------------------------------------------------------------------------------- Personnel on average 770 771 754 -------------------------------------------------------------------------------- Earnings per share, EUR 0.01 -0.05 -0.02 -------------------------------------------------------------------------------- Cash flow from operating activities per share, 0.01 0.02 0.02 EUR -------------------------------------------------------------------------------- Equity per share, EUR 0.44 0.39 0.45 -------------------------------------------------------------------------------- Reporting 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: ”Considering the circumstances our net sales developed favourably during the first quarter, especially in Finland. However, net sales and profitability in Sweden did not meet the expectations. The general advertising market in Sweden started to decline in September 2012 and weakened further in the beginning of this year. The Swedish advertising market for professional journals decreased by 22.6 per cent in the first quarter. The Finnish advertising market for periodicals also decreased by 16.2 per cent in the first quarter, and the general advertising market decreased by 13.3 per cent compared to the previous year. Despite the drop in net sales, our operating income from the magazine business in Finland was relatively good thanks to a 6.5% growth in circulation net sales and effective cost control. The growth of the net sales of circulation revenue is an exceptionally good achievement in today's market. Net sales and profitability of Event Business segment remained at the previous year's level. Net sales of Books and Legal Training segment remained at the previous year's level, but the profitability improved. Direct Marketing continued its steady growth, and profitability weakened slightly compared to the reference period. Change in the media sector requires active product development. In the current quarter we are going to launch a new portal - Talentum Summa - to make it possible to order and purchase the online news, magazine contents and books of our company in digital format. Summa will give Talentum the opportunity to serve both its readers and advertisers in new ways.” Business environment and seasonal variation In the period from January to March, general economic uncertainty continued in both Finland and Sweden, which have a weakening effect on the business environment in the near future. According to TNS Media Intelligence, the advertising market decreased by 13.3% in Finland and by 11.5% in Sweden (Sveriges Mediebyråer) during the first quarter of 2013. Advertising decreased by 16.2% in Finnish periodicals and by 22.6% in Swedish professional journals. In Finland online advertising revenues increased by 2.6% and by 8.0% in Sweden. Changes in the macro-economy had a generally negative impact, especially on recruitment advertising. Due to the unstable situation in the advertising market, advertising income from the magazine business in Finland and Sweden decreased, but Talentum's circulation revue grew slightly. Talentum actively strives to respond to the challenges of the changing business environment. Talentum is working on two major development projects, namely Talentum Summa and a project focussing on customer information management. Talentum Summa combines Talentum's magazines, websites and business literature into one content service. In the first phase content in Finnish will be available in the service and later also in Swedish. In addition to computers, the service is available in mobile applications as well. Summa enables to offer paid digital content and to aggregate it into a new content package. The content of Talentum's Swedish magazines and websites will also be included in the service at a later stage. In the customer information development project, individual customer databases are combined into one package and the quality of customer information is improved. The aim of the project is to offer better-targeted contents to customers as well as to create more efficient sales and marketing tools to Talentum's sales and marketing forces. The media and advertising markets are subject to seasonal variations. Talentum's magazines and books do not generally come out during the summer holiday season, which is why the third quarter is the weakest in terms of sales. Profit for the third period is almost always negative. Operations are generally at their busiest in the final quarter. Sector and Talentum prospects for 2013 Talentum estimates that its comparable net sales for 2013 will remain approximately at the same level as in 2012 and that its operating income without non-recurring items will be higher than in 2012. 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. This interim report is unaudited. Next interim report Talentum Oyj will publish its interim report for the second quarter of 2013 on 17 July 2013 and for the third quarter of 2013 on 22 October 2013. BRIEFING A briefing in Finnish will be held for analysts and the media today, 25 April 2013 at 11:00 at the Talentum head office, Annankatu 34-36 B, Kamppi, Helsinki, Finland. The interim statements will be presented by CEO Aarne Aktan. Welcome! Talentum Oyj Annankatu 34-36 B, FI-00100 Helsinki Telephone +358 20 44 240 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
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